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QUESTION

How does the Policy Enforcement apply to transactions?

ANSWER

The actions that you selected under Standard Due Diligence will now apply to all transactions and will be highlighted in red if it is not filled out.

If you had earlier selected Source of Fund and Purpose of Fund for Standard Due Diligence, this will now be mandatory for all transactions. If you do not wish for tellers to have to provide this information, make sure these associated boxes are unchecked under Risk Profile for Standard Due Diligence.

If you had earlier specified for Enhanced Due Diligence to apply to amounts greater than $5,000 in Risk Scoring, entering that amount in the system would trigger the need for actions you had specified under Enhanced Due Diligence, which in this example is the compulsory recording of customer details and screening.

As cash is a collection method, and the amount is large, these represent higher risk levels (at the point of assigning scores, you may wish to assign a higher score for these). If you had assigned high scorings for these risk factors, such transactions will be flagged accordingly.

After filling out customer details, customer screening is necessary for a transaction that triggers enhanced due diligence.

Running the customer's name through a Politically Exposed Persons list, does not provide any matches, hence the transaction is flagged as medium risk due to certain risk factors (cash, foreign country risk and large amount), but it can still be recorded and saved in the system.

Screening the customer name against warning lists however brings up a close match. As such, this transaction is flagged as high risk and disallowed.

Whether a transaction is allowed, flagged, requires enhanced due diligence or banned is really based on the selected actions in your Policy Enforcement and scoring system for risk classification that is quick and simple to set-up.

If a transaction is successfully recorded, you will be able to reference the risk factors of each transaction under the Transaction History screen.

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