If a customer is trying to do business with a sanctioned country, which of the following should you do? Which of the following is another example of a 'Red Flag'? What are the poss... If a customer is trying to do business with a sanctioned country, which of the following should you do? Which of the following is another example of a 'Red Flag'? What are the possible consequences to individuals of not conducting sanctions screening?
Understand the Problem
The question is asking about the appropriate actions when dealing with customers trying to conduct business with sanctioned countries, examples of red flags in client behavior, and the consequences of not conducting sanctions screening. It seeks to evaluate understanding of financial compliance and regulatory measures.
Answer
Escalate to manager, inconsistent accounts as Red Flag, all listed sanctions consequences.
For a customer trying to do business with a sanctioned country, escalate to your manager to further escalate to AMLD about the transactions. Another example of a 'Red Flag' is customers who wish to maintain a number of trustee or clients' accounts that do not appear consistent with their type of business. Possible consequences of not conducting sanctions screening include fine penalties, imprisonment, loss of job or career, or all of these.
Answer for screen readers
For a customer trying to do business with a sanctioned country, escalate to your manager to further escalate to AMLD about the transactions. Another example of a 'Red Flag' is customers who wish to maintain a number of trustee or clients' accounts that do not appear consistent with their type of business. Possible consequences of not conducting sanctions screening include fine penalties, imprisonment, loss of job or career, or all of these.
More Information
Addressing sanctions and recognizing red flags are critical to compliance in international business. Failing to conduct due diligence can lead to severe legal and financial repercussions.
Tips
Common mistakes include ignoring red flags or failing to report suspicious activities promptly. Always follow company protocols and legal requirements.
Sources
- Sanctioned Lists and Red Flags - Singapore Customs - customs.gov.sg
- Red Flag Indicators for AML-CFT - Sanction Scanner - sanctionscanner.com
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