AML Exam Questions and Answers |
Latest Version | 2024/2025 | Graded A+
What is the primary goal of anti-money laundering (AML) regulations?
- To increase financial transaction fees
✔✔ To prevent and detect money laundering and terrorist financing
- To enhance investment opportunities
- To simplify financial transactions
Which of the following is a common method used to launder money?
✔✔ Structuring transactions to avoid detection
- Increasing interest rates
- Decreasing the number of transactions
- Reducing account balances
What does the Know Your Customer (KYC) process involve?
✔✔ Verifying the identity and financial background of clients
- Investing in customer growth strategies
- Tracking customer transaction history only
1
,- Monitoring competitor activities
Which entity typically enforces AML regulations in financial institutions?
- Marketing departments
- Customer service teams
✔✔ Regulatory authorities and financial watchdogs
- Human resources departments
What is a Suspicious Activity Report (SAR)?
✔✔ A report filed when a financial institution detects suspicious or potentially illegal activities
- A summary of financial institution profits
- A routine transaction report for all clients
- An employee performance review document
Which of the following is a red flag for potential money laundering?
✔✔ Large, frequent cash transactions with no clear business purpose
- Small, infrequent transactions
- Transactions within the customer’s usual spending patterns
2
, - Regular payments of bills and subscriptions
How often should financial institutions update their AML compliance programs?
- Only when new employees are hired
- Annually
✔✔ Periodically, and whenever there are changes in regulations or operations
- Once every five years
What is the role of AML training for employees in financial institutions?
✔✔ To educate employees on recognizing and reporting suspicious activities
- To enhance their sales skills
- To improve customer relationship management
- To increase their knowledge of financial products
Which international organization sets global standards for anti-money laundering efforts?
✔✔ Financial Action Task Force (FATF)
- International Monetary Fund (IMF)
- World Trade Organization (WTO)
3
Latest Version | 2024/2025 | Graded A+
What is the primary goal of anti-money laundering (AML) regulations?
- To increase financial transaction fees
✔✔ To prevent and detect money laundering and terrorist financing
- To enhance investment opportunities
- To simplify financial transactions
Which of the following is a common method used to launder money?
✔✔ Structuring transactions to avoid detection
- Increasing interest rates
- Decreasing the number of transactions
- Reducing account balances
What does the Know Your Customer (KYC) process involve?
✔✔ Verifying the identity and financial background of clients
- Investing in customer growth strategies
- Tracking customer transaction history only
1
,- Monitoring competitor activities
Which entity typically enforces AML regulations in financial institutions?
- Marketing departments
- Customer service teams
✔✔ Regulatory authorities and financial watchdogs
- Human resources departments
What is a Suspicious Activity Report (SAR)?
✔✔ A report filed when a financial institution detects suspicious or potentially illegal activities
- A summary of financial institution profits
- A routine transaction report for all clients
- An employee performance review document
Which of the following is a red flag for potential money laundering?
✔✔ Large, frequent cash transactions with no clear business purpose
- Small, infrequent transactions
- Transactions within the customer’s usual spending patterns
2
, - Regular payments of bills and subscriptions
How often should financial institutions update their AML compliance programs?
- Only when new employees are hired
- Annually
✔✔ Periodically, and whenever there are changes in regulations or operations
- Once every five years
What is the role of AML training for employees in financial institutions?
✔✔ To educate employees on recognizing and reporting suspicious activities
- To enhance their sales skills
- To improve customer relationship management
- To increase their knowledge of financial products
Which international organization sets global standards for anti-money laundering efforts?
✔✔ Financial Action Task Force (FATF)
- International Monetary Fund (IMF)
- World Trade Organization (WTO)
3
