AML audit findings must be analyzed and addressed through remedial actions based on root cause analysis.
Option D (Correct): Root cause analysis helps develop effective corrective measures to prevent recurring AML deficiencies.
Option A (Incorrect): Retesting controls may be useful, but addressing deficiencies is more critical.
Option B (Incorrect): While the board oversees compliance, the responsibility for implementing fixes lies with AML teams.
Option C (Incorrect): Audit teams provide findings but do not execute corrective actions.
Best Practices for Addressing AML Audit Findings:
Identify the root cause of AML control failures.
Develop risk-based remediation plans.
Implement and monitor corrective actions.
Reference:
FATF Recommendation 18 (AML Internal Controls & Audit)
Basel Committee's Guidelines on AML Audits
Wolfsberg Group Principles for AML Risk Management
Final Thoughts:
Suspicious stock price movements can indicate market manipulation linked to money laundering.
EU AML and GDPR regulations enforce strict data minimization and AI compliance requirements.
Bearer shares, nominee directors, and tax-haven corporations increase money laundering risks.
AML audit findings should be addressed through root cause analysis and corrective actions.