Anti-Money Laundering Questions and
Answers | Latest Version | 2024/2025 |
Already Passed
What is the role of the Financial Action Task Force (FATF) in combating money laundering?
✔✔ The Financial Action Task Force (FATF) sets international standards and promotes effective
implementation of anti-money laundering measures globally.
How does AML legislation impact financial institutions' operations?
✔✔ AML legislation impacts financial institutions by requiring them to implement compliance
programs, conduct due diligence, and report suspicious activities.
What is the significance of AML compliance audits?
✔✔ AML compliance audits are significant because they assess the effectiveness of an
institution's AML controls and procedures, ensuring adherence to regulations.
How can institutions detect layering in money laundering schemes?
1
, ✔✔ Institutions detect layering by identifying complex and multiple transactions designed to
obscure the origins of illicit funds.
What is the purpose of enhanced due diligence (EDD) in AML?
✔✔ Enhanced due diligence (EDD) is used to perform deeper scrutiny on high-risk clients or
transactions to prevent money laundering and terrorist financing.
How do AML regulations affect cross-border transactions?
✔✔ AML regulations affect cross-border transactions by requiring financial institutions to
monitor and report international transfers that may involve illicit funds.
What steps should be taken if a suspicious transaction is detected?
✔✔ If a suspicious transaction is detected, it should be reported to the relevant authorities, and
further investigation should be conducted to determine the legitimacy of the transaction.
2
Answers | Latest Version | 2024/2025 |
Already Passed
What is the role of the Financial Action Task Force (FATF) in combating money laundering?
✔✔ The Financial Action Task Force (FATF) sets international standards and promotes effective
implementation of anti-money laundering measures globally.
How does AML legislation impact financial institutions' operations?
✔✔ AML legislation impacts financial institutions by requiring them to implement compliance
programs, conduct due diligence, and report suspicious activities.
What is the significance of AML compliance audits?
✔✔ AML compliance audits are significant because they assess the effectiveness of an
institution's AML controls and procedures, ensuring adherence to regulations.
How can institutions detect layering in money laundering schemes?
1
, ✔✔ Institutions detect layering by identifying complex and multiple transactions designed to
obscure the origins of illicit funds.
What is the purpose of enhanced due diligence (EDD) in AML?
✔✔ Enhanced due diligence (EDD) is used to perform deeper scrutiny on high-risk clients or
transactions to prevent money laundering and terrorist financing.
How do AML regulations affect cross-border transactions?
✔✔ AML regulations affect cross-border transactions by requiring financial institutions to
monitor and report international transfers that may involve illicit funds.
What steps should be taken if a suspicious transaction is detected?
✔✔ If a suspicious transaction is detected, it should be reported to the relevant authorities, and
further investigation should be conducted to determine the legitimacy of the transaction.
2
