Which recommendation should the audit team provide to address transaction monitoring (TM) issues?

C ​ Importance of Coverage Assessment: Coverage assessment ensures that the TM scenarios address the full spectrum of identified money laundering (ML) and terrorist financing (TF) risks relevant to the organization. This aligns with FATF Recommendations on risk-based approaches and the effectiveness of transaction monitoring systems​​. ​ Key Reference Justification: Basel Committee guidelines stress that financial institutions must regularly review their transaction monitoring coverage to ensure alignment with the risk landscape​​.