Which practices should financial institutions (FIs) adopt for the process of terminating customer relationships? (Select Three.)
Correct Answer: B,C,D
Terminating customer relationships due to AML risks requires clear procedures and documentation.
Option B (Correct): A standardized termination procedure ensures compliance, fairness, and consistency.
Option C (Correct): A final review of transactions helps identify suspicious activity before closure.
Option D (Correct): Documenting termination decisions protects the FI from legal and regulatory risks.
Option A (Incorrect): While clear communication is important, termination decisions should be consistent and policy-driven.
Option E (Incorrect): Customers should be notified appropriately but not necessarily after termination.