Answer: Under the AMA, a bank must develop specific policies and have documented criteria for modeling operational risk.

The question asks which statement is false about the Advanced Measurement Approach (AMA) to operational risk under Basel III. However, the provided text only includes option A, which states: "Under the AMA, a bank must develop specific policies and have documented criteria for modeling operational risk." This statement is actually **TRUE** according to Basel III requirements for AMA. The AMA requires banks to have robust operational risk management frameworks, including documented policies, procedures, and criteria for modeling operational risk. Since the question asks for the false statement and only option A is provided, but option A is actually correct, this appears to be an incomplete question. In a complete question, there would typically be multiple options where one is false while the others are true statements about AMA requirements.

Author: LeetQuiz .