Final answer:
It is true that policy exceptions can be auto-created if a financial institution is using automated policy exception functionality, as part of their risk management and compliance software solutions.
Step-by-step explanation:
True or False: Policy Exceptions may be auto created if your financial institution is using the Automated Policy Exception functionality.
True. Many financial institutions have the capability to automate certain compliance and policy management tasks, which can include the creation of policy exceptions. This is done through specialized software that can automatically detect when a transaction or account does not meet established policy criteria. When such a discrepancy is identified, the system can create an exception automatically, which can then be reviewed by human compliance officers. This helps in maintaining high levels of efficiency and accuracy in compliance processes within banks and other financial institutions. The automation of these processes is generally part of a bank's risk management and compliance software solutions.