80.2K

Verified Solution

Link Copied!

. You are a compliance officer in a Caribbean-island-based offshore investment bank dealing with Ultra High Net Worth (UHNW) Individuals and one client, on a tip provided by a correspondent bank, has been red-flagged as being in suspicion of running an illegal on-line gambling operation. In response, the investment bank has frozen his account and, as a further precautionary measure, you have filed a SAR. This UHNW individual somehow manages to contact you on your direct line asking to clear up the matter and set the banking relationship on a correct path through a direct meeting on the UHNW individual's yacht anchored in the harbor. He is "sure" that he can set the record straight and suggesting that it won't even take too long, offers amenities of his yacht for the enjoyment of your family and friends. How should you, as a compliance officer, deal with this customer under these circumstances taking into consideration only applicable elements from the following: Inducements/bribes Market abuse/conduct Conflict of interest Client's best interest rule Know Your Customer (KYC) Tipping off What further steps, if any, would you recommend to the Executive in charge of the Relationship Management Division to undertake with respect to this investment advisor? While you may want to do further reading on inducements/bribes, market abuse/conduct, conflict of interest, client's best interest rule, KYC and tipping off, do not provide any definitions. If you gain insights from any outside source, incorporating them into your answer, provide a reference to the material you have used. MAXIMUM WORD LIMIT

Answer & Explanation Solved by verified expert

See Answer