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Acams Advanced-CAMS-Audit Exam - Topic 4 Question 9 Discussion

Considering recent changes in the bank's correspondent banking business. Which is the most important risk indicator for the internal auditor to review?
C) The jurisdiction in which the respondent bank is located.
A) The management and ownership of the respondent bank.
B) The purpose of the services provided to the respondent bank.
D) The major business activities of the respondent bank. Jurisdictional risk is critical in correspondent banking due to potential exposure to countries with weaker AML/CFT controls, high corruption levels, or sanctions.

Acams Advanced-CAMS-Audit Exam - Topic 4 Question 9 Discussion

Actual exam question for Acams's Advanced-CAMS-Audit exam
Question #: 9
Topic #: 4
[All Advanced-CAMS-Audit Questions]

Considering recent changes in the bank's correspondent banking business. Which is the most important risk indicator for the internal auditor to review?

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Suggested Answer: C

by Kayleigh at Mar 07, 2025, 02:51 AM

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Dalene
7 months ago
I disagree, major business activities should be prioritized!
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Maryann
7 months ago
The purpose of services is important too, can't overlook that.
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Lizbeth
7 months ago
Surprised that jurisdiction isn't the top pick for everyone!
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Chun
7 months ago
I think the management and ownership matter more.
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Caren
7 months ago
Definitely the jurisdiction is key!
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Willodean
8 months ago
Jurisdictional risk definitely stood out in our practice questions. It makes sense given the current regulatory environment.
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India
8 months ago
I feel like the purpose of services provided is important too, but I can't recall if it was emphasized as much as jurisdiction.
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Brigette
8 months ago
I'm not entirely sure, but I think the management and ownership of the respondent bank could also be crucial. We had a case study on that.
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Denae
8 months ago
I remember discussing the importance of jurisdictional risk in our last class. It seems like a key factor for internal auditors.
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Mireya
8 months ago
Jurisdiction is definitely the way to go here. Regulatory and corruption risks in certain countries are a major concern in correspondent banking.
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Devora
8 months ago
The management and ownership of the respondent bank seems like the most critical risk indicator to me. That can give you a good sense of the overall risk profile.
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Dacia
8 months ago
Hmm, I'm not totally sure about this one. I was thinking the purpose of the services provided to the respondent bank might be the key risk factor to focus on.
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Jani
8 months ago
This is a tricky one. I think the jurisdiction of the respondent bank is the most important risk indicator to review, since that can expose the bank to higher AML/CFT risks.
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William
1 year ago
I see your point, Lamar. It's all about minimizing exposure to high-risk countries.
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Dallas
1 year ago
Haha, well if the bank is located in a tropical paradise, I'd say that's a good sign! But seriously, C is the correct answer. Can't take any chances with those risky jurisdictions.
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Shannan
1 year ago
Haha, well if the bank is located in a tropical paradise, I'd say that's a good sign! But seriously, C is the correct answer. Can't take any chances with those risky jurisdictions.
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Carmela
1 year ago
Jurisdictional risk is critical in correspondent banking due to potential exposure to countries with weaker AML/CFT controls, high corruption levels, or sanctions.
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Santos
1 year ago
D) The major business activities of the respondent bank.
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Hyman
1 year ago
C) The jurisdiction in which the respondent bank is located.
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Penney
1 year ago
B) The purpose of the services provided to the respondent bank.
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Gladis
1 year ago
A) The management and ownership of the respondent bank.
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Lamar
1 year ago
Yes, that's important too, but jurisdictional risk can have a bigger impact on AML/CFT controls.
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Mel
1 year ago
I agree, C is the way to go. Jurisdictional risk is crucial in this business. You don't want to be caught up in any shady international dealings, am I right?
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Artie
1 year ago
But what about the management and ownership of the respondent bank? Isn't that important too?
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Odette
1 year ago
C) The jurisdiction in which the respondent bank is located. Absolutely, that's the most important factor. I can't believe anyone would even consider the other options.
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Lizbeth
1 year ago
D) The major business activities of the respondent bank.
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Bernardo
1 year ago
C) The jurisdiction in which the respondent bank is located.
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Laura
1 year ago
B) The purpose of the services provided to the respondent bank.
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Yuette
1 year ago
A) The management and ownership of the respondent bank.
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William
1 year ago
I agree with Lamar, jurisdictional risk is crucial in correspondent banking.
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Lamar
1 year ago
I think the most important risk indicator is the jurisdiction of the respondent bank.
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