Which term best describes the overall framework to combat money laundering and trafficking?

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Multiple Choice

Which term best describes the overall framework to combat money laundering and trafficking?

BSA/AML programs describe the overarching set of policies, procedures, and controls that financial institutions implement to prevent, detect, and report money laundering and related illicit activity. These programs establish risk-based systems for identifying customers, conducting due diligence, monitoring transactions, and flagging or reporting suspicious activity through mechanisms like suspicious activity reports and currency transaction reports. They also include ongoing training, independent testing, and governance to keep the program effective and up to date with evolving risks. Cyber crime refers to crimes carried out using digital technology, not the formal framework banks use to combat money laundering. The Anti-Money Laundering Act 2020 is a major law that updates and expands AML authorities, but it sits within the BSA/AML regime rather than serving as the overall framework itself. The End Banking for Traffickers Act 2024 targets specific policy goals related to denying financial services to traffickers, but it does not replace the broad, institution-wide program used to fight laundering and trafficking.

BSA/AML programs describe the overarching set of policies, procedures, and controls that financial institutions implement to prevent, detect, and report money laundering and related illicit activity. These programs establish risk-based systems for identifying customers, conducting due diligence, monitoring transactions, and flagging or reporting suspicious activity through mechanisms like suspicious activity reports and currency transaction reports. They also include ongoing training, independent testing, and governance to keep the program effective and up to date with evolving risks.

Cyber crime refers to crimes carried out using digital technology, not the formal framework banks use to combat money laundering. The Anti-Money Laundering Act 2020 is a major law that updates and expands AML authorities, but it sits within the BSA/AML regime rather than serving as the overall framework itself. The End Banking for Traffickers Act 2024 targets specific policy goals related to denying financial services to traffickers, but it does not replace the broad, institution-wide program used to fight laundering and trafficking.

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