A bank is preparing for a regulatory exam after a previous regulatory exam identified weaknesses in the bank's AML program. Since the last exam, the bank has improved the written AML program, hired an experienced AML compliance officer, and has taken actions to demonstrate a strong culture of compliance. The bank is now focused on getting through their transaction monitoring case backlog and completing enhancements to its sanctions screening program. Which of the following are correct?

This statement is true because regulatory bodies require banks to show ongoing enhancements in their compliance efforts. Failure to demonstrate such improvements can lead to severe repercussions, including fines and legal action.

This choice is also correct, as regulatory agencies can still impose orders even if the bank has made progress. If they believe that the improvements are insufficient or incomplete, they can mandate further action to ensure compliance.

This statement is incorrect. Regulatory actions can lead to reputational damage even if the details remain confidential. Stakeholders may still perceive the actions negatively, affecting the bank's standing in the community and among clients.

This choice is incorrect because regulatory agencies typically do not mandate public disclosures from the board regarding remedial actions. While transparency is encouraged, such requirements are not standard practice and may depend on specific regulatory findings.

This statement is misleading, as secondary sanctions typically arise from violations rather than improvements. If the bank has effectively addressed previous concerns, it should mitigate the risk of secondary sanctions rather than increase it.