What must financial institutions do if they suspect a transaction is being conducted with a sanctioned party? After Sam Quinn's bank installs the latest automated screening softwar... What must financial institutions do if they suspect a transaction is being conducted with a sanctioned party? After Sam Quinn's bank installs the latest automated screening software for customer due diligence, does he need to continue making his own observations? If a customer is trying to do business with a sanctioned country, which of the following should you do?
Understand the Problem
The question is asking about the obligations of financial institutions when they suspect a transaction involves a sanctioned party. It also queries the actions needed when dealing with a customer from a sanctioned country, and whether there is a need to continue personal observations after installing a screening software. This involves understanding legal and compliance measures in financial transactions.
Answer
Freeze transaction, continue observations, and escalate to manager.
For suspected transactions with sanctioned parties, financial institutions should immediately freeze the transaction. Sam Quinn should continue making observations despite having automated software. If a customer tries to do business with a sanctioned country, escalate to your manager.
Answer for screen readers
For suspected transactions with sanctioned parties, financial institutions should immediately freeze the transaction. Sam Quinn should continue making observations despite having automated software. If a customer tries to do business with a sanctioned country, escalate to your manager.
More Information
Freezing transactions helps to prevent violations of sanctions. Even with technology, human oversight is crucial to catch complex nuances. Escalation ensures proper reporting and compliance.
Tips
Avoid assuming automation replaces human diligence. Always follow protocols and escalate issues as needed.
AI-generated content may contain errors. Please verify critical information
