AU.

Senior management and AML officers may face personal liability if they knowingly allow AML violations to persist.

Option A (Correct):If senior management or the AML officer was aware of violations and failed to act, they could face regulatory or criminal liability.

Option B (Incorrect):Criminal liability depends on intent and negligence—an AML officer is not automatically prosecuted because a bank receives a regulatory order.

Option C (Incorrect):Liability extends beyond the AML officer—other senior executives can also be held accountable.

Option D (Incorrect):Violations can result in both civil and criminal prosecution, depending on the severity.

Legal Risks for AML Compliance Failures:

Civil penalties (fines and sanctions) for AML program deficiencies.

Criminal charges if executives knowingly ignore violations.

Regulatory enforcement actions leading to license revocation.