Banks are required to monitor transactions of suspicious nature for reporting to the authorities under anti-money laundering measures. The purpose of reporting is:

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Combating finance of terrorism
B	To check hawala transactions
C	To check the inflow of crime money
D	All the above

Explanation:

Detailed explanation-1: -Criminals use money laundering to make illicit funds appear to have a legitimate origin. AML regulations require financial institutions to develop sophisticated customer due diligence plans to assess money laundering risks and detect suspicious transactions.

Detailed explanation-2: -However, there is a suspicion that the account holder is trying to hide something or take illegal action. The SAR Report is usually sent to the country’s financial crime enforcement agency to collect and analyze transactions and then report them to the relevant law enforcement agencies.

Detailed explanation-3: -Transaction monitoring is the process of monitoring a customer’s transactions such as transfers, deposits and withdrawals. A transaction monitoring system will seek to identify suspicious behaviour which could indicate money laundering or other financial crime occurring.

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