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Exam CFE - Investigation topic 1 question 162 discussion

Actual exam question from ACFE's CFE - Investigation
Question #: 162
Topic #: 1
[All CFE - Investigation Questions]

Due to risks of illicit transactions, most jurisdictions require financial institutions to obtain information about which of the following from an institution with which they have a foreign correspondent relationship?

  • A. The institution's client loan profiles
  • B. The institution's licenses or certifications
  • C. The institution's branch addresses
  • D. The institution's tax statements
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Suggested Answer: B 🗳️

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AjaiArjuna
3 months, 2 weeks ago
Selected Answer: B
Under anti-money laundering (AML) and know-your-correspondent requirements (such as FATF recommendations and U.S. Patriot Act provisions), financial institutions must conduct due diligence on foreign correspondent banks. This includes verifying that the foreign institution is properly licensed or regulated in its home jurisdiction to prevent illicit transactions and ensure legitimacy.
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_denw
4 months, 3 weeks ago
Selected Answer: C
Most jurisdictions require financial institutions to obtain and verify specific information—including the name, location, and branch addresses—of foreign financial institutions with which they maintain correspondent relationships, as part of anti-money laundering (AML) and due diligence regulations.
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