Transaction monitoring alerts requirefurther analysisto determine whether they indicategenuine

suspicious activity or a false positive.

Option C (Correct):Requesting information from the relationship manager helps gather customer

background details, past transaction patterns, and business rationale.

Option A (Incorrect):Below-the-line testing assesses system effectiveness but does not resolve an

immediate AML alert.

Option B (Incorrect):Directly contacting a counterparty bank may violate privacy regulations and

should only be done if escalation is required.

Option D (Incorrect):Restricting access without due diligence may lead to regulatory and reputational

risks.

Best Practices for Investigating AML Alerts:

Review transaction history and customer risk profile.

Engage the relationship manager for business context.

Escalate to AML compliance teams if red flags persist.

Reference:

FATF Recommendation 10 (Customer Due Diligence & Monitoring)

Wolfsberg Group Guidance on Transaction Monitoring & Alert Handling

6th EU AML Directive (6AMLD) on Suspicious Transaction Investigations