What is one requirement for the testing plan related to financial crime risks?

The requirement for the testing plan related to financial crime risks focuses on the effectiveness in mitigating these risks. This emphasizes the need for organizations to ensure that their controls and measures are not only in place but are also functioning as intended to reduce the likelihood and impact of financial crime. A testing plan that is centered on effectiveness will help identify areas where controls may fail or require improvement, ultimately enhancing the organization’s overall compliance and risk management framework.

By prioritizing the effectiveness of the mitigation strategies, organizations can focus on the actual outcomes and impacts of their policies and procedures. This approach allows for continuous evaluation and adaptation of strategies to better respond to evolving financial crime threats.

In contrast, the other options relate to different areas of organizational protocol. While contingency plans for civil lawsuits and ensuring legal compliance are important, they do not directly address the core goal of the testing plan in terms of financial crime risk mitigation. Annual reviews of financial reports are also relevant but are more focused on financial accuracy than on assessing the efficacy of risk management strategies against financial crimes specifically.