cams question 357 discussion

What is an example of a legal risk a financial institution (FI) could face if it is sanctioned for failure to
report suspected fraud activity?

A. Foreign correspondents could terminate their relationships with the sanctioned bank.
B. Clients of the bank might draw down the reserves of the bank and lead to liquidity issues.
C. The bank could be forced to reimburse the victims of the fraudster for the losses suffered. Most Votes
D. The bank could see higher default rates on loans granted to companies owned by the fraudster.

A 30 votes

50%

B 7 votes

50%

C 31 votes

50%

D 13 votes

50%

Discussions

0 / 1000

AnaA.

1 year, 4 months ago

A. Les correspondants étrangers pourraient mettre fin à leurs relations avec la banque sanctionnée.

AnaA.

1 year, 4 months ago

D. La banque pourrait constater des taux de défaut plus élevés sur les prêts accordés aux entreprises appartenant au fraudeur.

dionette_tayl

1 month, 3 weeks ago

C. The bank could be forced to reimburse the victims of the fraudster for the losses suffered.

alban_999

6 days, 16 hours ago

Option C as it represents a direct financial liability resulting from legal action taken by the victims.