CFE – Investigation — Question 87

Due to risks of illicit transactions, most jurisdictions require financial institutions to obtain information about which of the following from an institution with which they have a foreign correspondent relationship?

Answer options

• A. The institution's client loan profiles
• B. The institution's licenses or certifications
• C. The institution's branch addresses
• D. The institution's tax statements

Correct answer: B

Explanation

The correct answer is B because financial institutions need to verify the legitimacy and regulatory compliance of their foreign correspondent banks, which is ensured through licenses or certifications. Options A, C, and D do not provide necessary regulatory information and are therefore not required for compliance.