Section B (Syllabus C)

Scenario: 'MetroTrust Bank' is a mid-sized regional bank. To combat rising financial crime, they are migrating their core banking systems to a public Cloud infrastructure (IaaS) and implementing an Artificial Intelligence (AI) system to monitor transactions for money laundering. The AI flags suspicious patterns, which are then reviewed by human compliance officers. The internal audit team is concerned about data privacy and the 'black box' nature of the AI.

Based on the scenario and your knowledge of technology and regulation (Syllabus C), select the FOUR correct statements.

Using a public Cloud (IaaS) means MetroTrust Bank no longer physically owns the servers hosting their core banking data.

The AI system is likely utilizing Big Data analytics to identify anomalies in massive volumes of transaction data.

The 'black box' nature of AI creates an audit risk because it is difficult to explain exactly how the algorithm reached a specific conclusion.

The human compliance officers reviewing the AI flags act as an internal control to prevent false positives from disrupting legitimate customer transactions.

Migrating to the Cloud completely eliminates MetroTrust Bank's legal responsibility for data protection and cyber-security.

Money laundering only involves the 'Integration' stage, which the AI is specifically designed to ignore.