Chinese Walls are
A)internally imposed barriers that limits the flow of confidential client information among departments or areas.
B)regulatory barriers that are introduced to insulate the bank against losses.
C)regulations that prohibit a bank from lending anything at all to its securities affiliates.
D)restrictions on a bank holding company that prevents the use of subsidiary funds to support ailing affiliates.

Question

Quizplus · Accepted Answer

Chinese Walls refer to the barriers that are put in place within a financial institution to prevent the inappropriate flow of information between different parts of the organization. These walls are often used to ensure that confidential client information is not shared with unauthorized parties, and they are typically enforced through strict policies and procedures. The goal of Chinese Walls is to maintain the integrity of the institution and protect against potential conflicts of interest.

Chinese Walls Are