Cryptoasset Anti-Financial Crime Specialist (CCAS) Certification Practice Test

What action should not be taken when analyzing a relationship with a client after repeated SAR filings?

1. Choosing when to disclose SAR details to the client

2. Determining the necessity to adjust KYC processes

3. Assessing account closure procedures

4. Understanding client financial behavior changes

The correct answer is: Choosing when to disclose SAR details to the client

When analyzing a relationship with a client after repeated Suspicious Activity Report (SAR) filings, it is crucial to understand that choosing when to disclose SAR details to the client is not appropriate. SARs are designed to be confidential; disclosing any SAR information to a client could jeopardize ongoing investigations, violate legal obligations, and potentially expose the reporting institution to regulatory scrutiny. Maintaining the confidentiality of SARs is essential to uphold legal processes and protect the integrity of investigations into suspicious activities. In contrast, adjusting Know Your Customer (KYC) processes, assessing account closure procedures, and understanding changes in a client's financial behavior are all proactive steps that can be taken to manage risk without compromising legal requirements or the investigative process. These actions help institutions remain compliant and responsive to the risks associated with clients displaying potentially illicit behavior.