Financial Risk Manager Part 2
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During a meeting with senior management of a midsize bank, a risk consultant presented a case study regarding USAA Bank. The discussion focused on strategies to enhance financial crime and fraud risk management. What was the primary reason for the regulatory fine that was imposed on USAA Bank in this context?
A
USAA Bank was fined after many retail bankers were found to have opened unwanted accounts for existing customers in order to meet performance incentives.
B
USAA Bank was fined for failing to correct deficiencies identified by regulators in its management and reporting of suspicious transactions after an extended period of time.
C
USAA Bank was fined after several subsidiaries were found to have laundered over USD 1 billion in funds belonging to large criminal organizations.
D
USAA Bank was fined after fraudulently marketing complex interest rate derivatives to large municipal clients by significantly understating their risk.