Continuing with the case study in Beyond Walls 4.5, Yap is now the new SVP for corporate banking. One of the reasons why Yap was chosen by senior management is Yap’s propensity to say yes to the favors requested of him, unlike Abalos who has been consistent with his job and whom senior management thinks as too stiff for the job. Two members of senior management tapped WXY Corporation, a multilevel marketing business with a net worth of P50 million. The bank has a policy to be cautious in opening accounts of multilevel marketing businesses and that enhanced due diligence should be performed in opening their accounts. Members of senior management need the approval of Yap as head of corporate banking. Upon Yap’s review, WXY Corporation did not pass the enhanced due diligence requirements of the bank. However, members of senior management insisted that he sign and reminded him that he is there in his position because of them. Yap approved the account opening of WXY Corporation.
1. What are the effects of the decision of Yap to open the account of WXY Corporation?
2. If you were in his situation, what would you do?

Question

TeacherJoAllen · Answer

BEYOND WALLS 4.5The Yap and WXY Corporation case emphasizes the importance of risk management practices and regulatory compliance in the banking business. Yap's decision to accept the account opening despite the inability to meet the bank's heightened due diligence procedures might have serious ramifications for the bank and its clients. Yap jeopardized the bank's reputation and financial soundness, as well as the interests of its clients, by prioritizing personal favors and succumbing to pressure from upper management. The effects of the decisionThe decision of Yap to open the account of WXY Corporation despite failing the enhanced due diligence requirements of the bank could have negative effects on the bank's reputation and financial stability. Multilevel marketing businesses, especially those that are not properly regulated, have a high risk of fraudulent activities and money laundering. By opening an account for WXY Corporation, the bank may unwittingly become a facilitator of illegal activities, which could lead to legal and financial consequences for the bank. Moreover, by yielding to the pressure of senior management, Yap compromises the bank's risk management protocols and exposes the bank to more significant risks.What will I do?If I were in Yap's situation, I would decline the request to open the account of WXY Corporation. I would explain to senior management that the bank has a policy of being cautious in opening accounts of multilevel marketing businesses, and that enhanced due diligence is necessary to ensure the legitimacy of the business and the absence of any illegal activities. I would also stress that the bank's reputation and financial stability are at stake if we disregard our risk management protocols. If senior management persists in their request, I would elevate the matter to higher management or to the bank's compliance officer for guidance and support in upholding the bank's policies and regulations. Ultimately, I would prioritize the bank's interests and the protection of our clients' assets over personal favors or pressures from internal or external parties.For more information about case study: brainly.ph/question/15608381#SPJ1

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Continuing With The Case Study In Beyond Walls 4.5, Yap Is Now The New SVP For…

BEYOND WALLS 4.5

The effects of the decision

What will I do?

BEYOND WALLS 4.5

The effects of the decision

What will I do?

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