Which are the two most common controls a financial institution (FI) uses to identify suspicious money-laundering activity? (Choose two.)

Sanctions screening and transaction monitoring rules are two of the most common controls that FIs

use to identify suspicious money-laundering activity. Sanctions screening is the process of checking

customers, transactions, and counterparties against various lists of sanctioned individuals, entities,

and countries issued by national and international authorities. Sanctions screening helps FIs to avoid

doing business with or facilitating the activities of those who are involved in terrorism, proliferation,

human rights violations, or other criminal activities. Transaction monitoring rules are the criteria or

scenarios that FIs use to detect unusual or potentially suspicious patterns of transactions or

behaviors of customers or accounts. Transaction monitoring rules help FIs to identify transactions

that deviate from the expected norms, such as large cash deposits, frequent wire transfers, or

transactions with high-risk jurisdictions. Transaction monitoring rules also help FIs to comply with

their reporting obligations, such as filing Suspicious Activity Reports (SARs) or Currency Transaction

Reports (CTRs).

= ACAMS CAMS Certification Video Training Course, Chapter 4: Developing an Effective Anti-Money

Laundering Program, Section 4.2: Customer Identification Program (CIP) and Customer Due Diligence

(CDD); Money laundering and terrorist financing, Section: Anti Money Laundering (AML)

regulations; The Three Stages Of Money Laundering And How Money Laundering Works, Section:

How to Prevent Money Laundering.