Explanation:
The role of supervisors is to independently scrutinize and verify AML/CFT policies and procedures. They have a mandate to ensure that banks in their jurisdiction maintain sound ML/FT risk management to protect the integrity of both the banks and the financial system as a whole.
A is incorrect. Approval and oversight is the responsibility of the board.
B and D are duties of the chief AML/CFT officer.
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Q.3124 Which of the following is the main role of supervisors in banks under the Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT) framework put forth by the Basel Committee?
A
Approval and oversight of AML/CFT risk management policies and procedures.
B
Advising banks on the best risk management strategies.
C
Evaluating whether the reporting entity has an appropriate and reasonable risk assessment, and an AML/CFT programme that reflects inherent risks.
D
Helping banks to develop a sound AML/CFT risk management system that can keep track of all customer transactions.
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