Which enforcement action is listed as a possible sanction for AML non-compliance in the material?

• A. Fine (for example, $10)
• B. Tax adjustment
• C. Public awareness campaign
• D. Cease and desist

Answer: (A)

Monetary penalties are a common way regulators enforce AML rules because they create a tangible consequence for non‑compliance and deter future violations. A fine directly ties the sanction to the breach, scales with severity, and provides a clear incentive for firms to strengthen their AML programs, conduct proper customer due diligence, and file accurate suspicious activity reports. The material specifically lists fines as a possible sanction, making it the best fit for the scenario.

Tax adjustments aren’t typically used as AML penalties because they relate to taxation rather than regulatory enforcement. A public awareness campaign is educational rather than punitive, so it doesn’t serve as a sanction. A cease and desist can be an enforcement tool in some contexts, but the material in question identifies a monetary penalty as the sanction, which is why the fine is the correct choice.