An employee approves a Know Your Customer (KYC) or Know Your Business (KYB) check without meeting the requirements to facilitate financial crime. What is this an example of?Choisissez la meilleure optionMisrepresentation of Financial Statements and Reports Misappropriation of Customer Assets Circumvention of Control Environment
Question
An employee approves a Know Your Customer (KYC) or Know Your Business (KYB) check without meeting the requirements to facilitate financial crime. What is this an example of?Choisissez la meilleure optionMisrepresentation of Financial Statements and Reports Misappropriation of Customer Assets Circumvention of Control Environment
Solution
This is an example of "Circumvention of Control Environment". The employee is bypassing the established KYC or KYB checks, which are control measures put in place to prevent financial crime. By approving the check without meeting the requirements, they are circumventing this control environment.
Similar Questions
What is the primary principle behind KYC (Know Your Customer) in banking?To enhance customer serviceTo protect banks from fraudsTo ensure ethical behavior by customersTo increase the bank's profits
What does KYC stand for?OPTION ACTIONKnow Your Company Know Your Customer Keep Your Customers Know Your Compliance
It accommodates many variations in circumstances that create threats to compliance with the fundamental principles and can deter a professional accountant from concluding that a situation is permitted if it is not specifically prohibited.Select one:a.auditingb.public interestc.conceptual framework approachd.code of ethics
It is the control activity where there is a proper security over cash and limits access to the accounting records.Select one:a.access controlb.segregation of dutiesc.transaction authorizationd.independent verification
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