Free Acams CKYCA Actual Exam Questions - Question 9 Discussion
sanctioned entity and individual list. The analyst reviews the list and identifies a current customer.
Which step should the analyst take first?
Good point on the authority issue. Plus, jumping to freeze the account (C) might cause legal issues if done without approval. So, starting with A to escalate makes the most sense here.
Yeah, the first move should be notifying the MLRO to handle it properly, so A.
It’s A for me. Freezing accounts (C) seems like it might be jumping the gun without notifying the right person first. The analyst should report to the Money Laundering Reporting Officer who can decide on the next steps, including freezing or investigating further. Forming a sanctions committee (B) sounds like something for later, not an immediate action. Contacting the customer (D) could risk tipping them off, so probably not the first move either. Reporting up is usually the safest and most compliant first step in these situations.
A imo, because the MLRO usually has the authority to decide on freezing or escalating. Directly freezing (C) without approval might cause compliance issues or unnecessary disruption.
Option A feels right because the MLRO is the one who decides what to do next after a potential sanction hit. Freezing the account immediately (C) might be necessary sometimes, but usually, you’d need approval first to avoid messing up compliance steps. Plus, contacting the customer (D) could alert them before you know for sure it’s a hit. Starting with your MLRO ensures the situation is handled properly according to your company’s policies and legal requirements.
A vs C? I’d say reporting to the MLRO first makes more sense because they handle compliance decisions. Jumping straight to freezing the account might be premature without official approval. The MLRO can assess the risk and direct the next steps properly. Plus, contacting the customer or forming committees feels like later moves, not the immediate reaction when you spot a sanction match.
A/C? Freezing assets might be too soon without the MLRO’s go-ahead. Reporting first lets the right people decide next steps based on the risk and legal requirements.
A/C? Is it standard to freeze assets before reporting, or does it depend on internal policy? The question doesn't specify if immediate action like freezing is mandatory before notifying compliance.