Ace the CRCM Challenge 2025 – Master Compliance Like a Pro!

The correct answer revolves around the Federal Financial Institutions Examination Council (FFIEC) Examination Manual's guidance on conducting a Bank Secrecy Act/Anti-Money Laundering (BSA/AML) risk assessment. The manual outlines several categories to assess the risk that an institution may face concerning money laundering and terrorist financing activities.

In this context, the categories of assessment generally include 'Products,' 'Customers,' and 'Services.' Each of these categories helps institutions identify potential vulnerabilities based on the types of products offered (such as loans, credit cards, etc.), the characteristics of the customer base (including business versus personal customers, the geographic location of customers, etc.), and the services provided (such as wire transfers, cash management, etc.).

However, 'Vendors' is not explicitly highlighted as a category for BSA/AML risk assessment within the FFIEC guidance. While vendor risk could still be a consideration in a broader risk management context, the FFIEC Examination Manual does not specifically emphasize it as a primary category for BSA/AML risk assessments. This distinction is crucial as it illustrates the focus areas that financial institutions should prioritize to effectively mitigate the risks associated with money laundering and terrorist financing activities.