CHAPTER 3: AML/COUNTER-TERRORIST FINANCING
COMPLIANCE PROGRAMS ACTUAL COMPLETE
EXAM|WITH ACCURATE QUESTIONS AND VERIFIED
ANSWERS|GRADED A
Account Opening Requirements - Natural Person Ans✓✓✓ • Legal
name (first and last) and any other names used (such as maiden name,
former legal name or alias).
• Complete residential address and, on the basis of risk, also the business
address or post office number.
• Landline or mobile telephone numbers and e-mail address.
• Date and place of birth, and gender.
• Nationality and residency status.
• Occupation, position held and name of employer.
• An official personal identification number or other unique identifier.
• Type of account and nature of the banking relationship.
• Signature.
Verify through valid source documents
Account Opening Requirements - Non-natural Persons Ans✓✓✓ •
Name, legal form status and proof of incorporation of the legal person.
• Permanent address of the principal place of the legal person's activities.
• Mailing and registered address of legal person.
• Identity of natural persons who are authorized to operate the account;
• Contact telephone numbers.
,• Official identification number.
• Powers that regulate and bind the legal person.
• Identity of the beneficial owners.
• Nature and purpose of activities of the legal entity and its legitimacy.
• Financial situation of the entity.
• Expected use of the account
AML/CFT Compliance Officer Ans✓✓✓ Compliance = Second Line of
Defense
In most cases, the board of directors is responsible for appointing a
qualified individual as an institution's AML/CFT Compliance Officer.
This individual is responsible for managing all aspects of the AML/CFT
compliance program.
Should have ability to communicate to board all the way to front-line
employees
Responsible for institutions overall AML compliance
AML/CFT Program - Policies/Procedures/Controls Ans✓✓✓ Policies -
high level of AML/CFT program. Signed off by senior management - set
tone at the top
, Procedures - workable documents. Provide enough detail on how to
perform an action in alignment with AML/CFT requirements
Controls - Actual mechanisms that prevent AML/CFT (Management
reporting)
AML/CFT Risk Categories Ans✓✓✓ Prohibited: No dealings of any
kind
High Risk: Significant risk, but not necessarily prohibited
Medium Risk: Additional scrutiny required
Low Risk: a baseline risk of ML (normal expected activity)
AML/CFT Risk Identification (3 Types) Ans✓✓✓ Consider the
following:
Customer Type
Geography
Products/Servcies
AML/CFT Risk Identification (High Risk Product Types) Ans✓✓✓ •
Private banking
COMPLIANCE PROGRAMS ACTUAL COMPLETE
EXAM|WITH ACCURATE QUESTIONS AND VERIFIED
ANSWERS|GRADED A
Account Opening Requirements - Natural Person Ans✓✓✓ • Legal
name (first and last) and any other names used (such as maiden name,
former legal name or alias).
• Complete residential address and, on the basis of risk, also the business
address or post office number.
• Landline or mobile telephone numbers and e-mail address.
• Date and place of birth, and gender.
• Nationality and residency status.
• Occupation, position held and name of employer.
• An official personal identification number or other unique identifier.
• Type of account and nature of the banking relationship.
• Signature.
Verify through valid source documents
Account Opening Requirements - Non-natural Persons Ans✓✓✓ •
Name, legal form status and proof of incorporation of the legal person.
• Permanent address of the principal place of the legal person's activities.
• Mailing and registered address of legal person.
• Identity of natural persons who are authorized to operate the account;
• Contact telephone numbers.
,• Official identification number.
• Powers that regulate and bind the legal person.
• Identity of the beneficial owners.
• Nature and purpose of activities of the legal entity and its legitimacy.
• Financial situation of the entity.
• Expected use of the account
AML/CFT Compliance Officer Ans✓✓✓ Compliance = Second Line of
Defense
In most cases, the board of directors is responsible for appointing a
qualified individual as an institution's AML/CFT Compliance Officer.
This individual is responsible for managing all aspects of the AML/CFT
compliance program.
Should have ability to communicate to board all the way to front-line
employees
Responsible for institutions overall AML compliance
AML/CFT Program - Policies/Procedures/Controls Ans✓✓✓ Policies -
high level of AML/CFT program. Signed off by senior management - set
tone at the top
, Procedures - workable documents. Provide enough detail on how to
perform an action in alignment with AML/CFT requirements
Controls - Actual mechanisms that prevent AML/CFT (Management
reporting)
AML/CFT Risk Categories Ans✓✓✓ Prohibited: No dealings of any
kind
High Risk: Significant risk, but not necessarily prohibited
Medium Risk: Additional scrutiny required
Low Risk: a baseline risk of ML (normal expected activity)
AML/CFT Risk Identification (3 Types) Ans✓✓✓ Consider the
following:
Customer Type
Geography
Products/Servcies
AML/CFT Risk Identification (High Risk Product Types) Ans✓✓✓ •
Private banking
