AML Exam (CE) Questions and Answers | Latest Version | 2024/2025 | Graded A+

AML Exam (CE) Questions and Answers | Latest Version | 2024/2025 | Graded A+ What is the primary purpose of anti-money laundering (AML) laws? - To increase bank profits - To enhance customer experience - To prevent and detect money laundering and terrorist financing To ensure financial integrity and compliance What is one common method used by money launderers to obscure the origin of illicit funds? - Investing in real estate Structuring transactions to avoid detection - Purchasing high-value collectibles - Using multiple bank accounts to deposit small amounts What key document must financial institutions file when a transaction exceeds a certain threshold? 2 Currency Transaction Report (CTR) - Suspicious Activity Report (SAR) - Financial Action Task Force Report (FATF) - Anti-Money Laundering Report (AMLR) What is the main function of a Suspicious Activity Report (SAR)? - To report large transactions To report suspicious or potentially illegal activity - To document customer complaints - To track routine business operations How often should a financial institution’s AML program be reviewed and updated? - Every 10 years - Every 5 years Regularly, and as needed based on regulatory changes or identified risks 3 - Only when a major compliance issue is identified Which entity is typically responsible for