Which should the auditor recommend?

Review of client files reveals that staff members have been performing negative media searches for clients only when they recognize the client name. When an interesting story is identified a print of the results is inserted in the client file. There are no clear procedures on adverse media screening.

Which should the auditor recommend? {Select Two.)
A . Evidence of negative media screening retained in client files must comprise negative reports only.
B . All staff members should be provided with additional training to ensure they adhere to standard procedures.
C . Identification of relevant reports via adverse media searches must be escalated for an assessment for materiality.
D . Privacy regulation requires that clients who have a print copy of the adverse media m their files should be notified.
E . Procedures should be enhanced to require that all clients are subject to regular negative media screening.

Answer: B, E

Explanation:

Adverse Media Screening Requirements:

Negative media screening is a critical part of customer due diligence (CDD) as highlighted in FATF Recommendation 10. Proper training ensures staff apply consistent procedures.

Regular screening of all clients ensures ongoing monitoring of risks, aligning with the risk-based

approach mandated by AML standards.

Key Compliance Justification:

Staff training and procedural updates mitigate the risk of inconsistent adverse media identification, a key finding in compliance audits.