AML Test Study Guide Questions and Answers | Latest Version | 2024/2025 | Rated A+

AML Test Study Guide Questions and Answers | Latest Version | 2024/2025 | Rated A+ What is a key objective of anti-money laundering (AML) programs in financial institutions? - To increase transaction volumes - To simplify customer onboarding processes To detect and prevent money laundering and terrorist financing - To expand global market reach Which of the following is considered a red flag for potential money laundering activity? - Regular deposits of small amounts of cash - Transactions with known business partners Large, unusual transactions that are inconsistent with a customer’s known profile - Routine transfers between domestic accounts What is the purpose of a "know your customer" (KYC) process? 2 - To improve customer service - To enhance marketing strategies To verify the identity of clients and understand their financial activities - To streamline loan approval processes Which regulatory body is responsible for enforcing AML regulations in the United States? - The Federal Reserve - The Securities and Exchange Commission (SEC) The Financial Crimes Enforcement Network (FinCEN) - The Federal Trade Commission (FTC) What is the main benefit of implementing a risk-based approach in AML compliance? - To reduce operational costs - To speed up customer onboarding 3 To allocate resources and controls based on the level of risk associated with different customers or transactions - To increase profit margins