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

Which non-governmental body published guidance for risk management framework in financial institutions?

1. The Egmont Group

2. The Wolfsberg Group

3. Financial Action Task Force

4. Global Risk Task Force

The correct answer is: The Wolfsberg Group

The Wolfsberg Group is an association of 13 global banks that aims to develop frameworks and guidance for the management of financial crime risk. It provides standards for compliance and risk management, which are of great importance for financial institutions engaged in globally interconnected operations. Their guidance is particularly focused on combating money laundering and terrorism financing, helping banks and other financial entities to establish effective risk management frameworks. This group's documents and principles assist institutions in building robust systems that enhance their ability to detect and prevent illegal activities, thus promoting a sound environment for banking operations. The Wolfsberg Group's contribution to the financial sector is significant because it provides well-researched and practical guidance that can be incorporated into the compliance programs of financial institutions. In contrast, while the other entities mentioned, such as the Egmont Group, the Financial Action Task Force (FATF), and the Global Risk Task Force, also focus on combating financial crime and providing guidance, they have different scopes and functions. For instance, FATF is an intergovernmental organization that sets international standards aimed at preventing money laundering and terrorist financing but does not specifically target financial institutions’ risk management frameworks as the Wolfsberg Group does.