AML Exam 2 Questions and Answers |
Latest Version | 2024/2025 | Already
Passed
What is the primary function of a transaction monitoring system in anti-money laundering
(AML) efforts?
- To enforce regulations
- To manage customer relationships
✔✔ To detect and report suspicious transactions
- To handle customer complaints
Which entity is typically responsible for setting AML regulatory standards in a country?
- Financial institutions
- Individual banks
- International organizations
✔✔ Government agencies
What is a key indicator of suspicious activity that might suggest money laundering?
- Routine bank deposits
1
,- Consistent transaction patterns
✔✔ Large, unexplained cash transactions
- Regular account updates
Which type of report must be filed for transactions that exceed a certain monetary threshold?
- Suspicious Activity Report (SAR)
- Credit Report
- Compliance Report
✔✔ Currency Transaction Report (CTR)
What is the purpose of enhanced due diligence (EDD) in AML procedures?
- To simplify client onboarding
- To expedite transaction processing
✔✔ To provide additional scrutiny for higher-risk clients
- To reduce the cost of compliance
What is the role of know your customer (KYC) procedures in AML compliance?
- To verify employment history
2
, - To check credit scores
✔✔ To confirm the identity and assess the risk profile of clients
- To monitor social media activity
Which of the following best describes "structuring" in the context of money laundering?
- Depositing large sums in a single transaction
- Using only legitimate sources of funds
✔✔ Breaking down large amounts of money into smaller, less suspicious transactions
- Providing full documentation for all transactions
How often should financial institutions conduct AML training for their employees?
- Annually
- Every five years
✔✔ Regularly and as needed to stay compliant with current regulations
- Only when there is a regulatory change
What is the purpose of a risk-based approach in AML compliance?
- To standardize procedures for all clients
3
Latest Version | 2024/2025 | Already
Passed
What is the primary function of a transaction monitoring system in anti-money laundering
(AML) efforts?
- To enforce regulations
- To manage customer relationships
✔✔ To detect and report suspicious transactions
- To handle customer complaints
Which entity is typically responsible for setting AML regulatory standards in a country?
- Financial institutions
- Individual banks
- International organizations
✔✔ Government agencies
What is a key indicator of suspicious activity that might suggest money laundering?
- Routine bank deposits
1
,- Consistent transaction patterns
✔✔ Large, unexplained cash transactions
- Regular account updates
Which type of report must be filed for transactions that exceed a certain monetary threshold?
- Suspicious Activity Report (SAR)
- Credit Report
- Compliance Report
✔✔ Currency Transaction Report (CTR)
What is the purpose of enhanced due diligence (EDD) in AML procedures?
- To simplify client onboarding
- To expedite transaction processing
✔✔ To provide additional scrutiny for higher-risk clients
- To reduce the cost of compliance
What is the role of know your customer (KYC) procedures in AML compliance?
- To verify employment history
2
, - To check credit scores
✔✔ To confirm the identity and assess the risk profile of clients
- To monitor social media activity
Which of the following best describes "structuring" in the context of money laundering?
- Depositing large sums in a single transaction
- Using only legitimate sources of funds
✔✔ Breaking down large amounts of money into smaller, less suspicious transactions
- Providing full documentation for all transactions
How often should financial institutions conduct AML training for their employees?
- Annually
- Every five years
✔✔ Regularly and as needed to stay compliant with current regulations
- Only when there is a regulatory change
What is the purpose of a risk-based approach in AML compliance?
- To standardize procedures for all clients
3
