AMLA LAW QUESTIONS AND ANSWERS
| LATEST UPDATE | GRADED A+
What is the primary focus of the Anti-Money Laundering Act (AMLA)?
- Enhancing corporate governance
- Promoting financial literacy
- Preventing and detecting money laundering and terrorist financing
✔✔ Regulating financial institutions and ensuring compliance with AML standards
Which of the following entities is typically required to comply with AMLA regulations?
- Non-profit organizations
✔✔ Banks and financial institutions
- Educational institutions
- Healthcare providers
Under AMLA, what must financial institutions do when they suspect a transaction involves
money laundering?
1
, - Ignore the transaction if it is small
- Report it only if the client is a PEP
✔✔ File a Suspicious Activity Report (SAR)
- Delay reporting until the end of the year
How often must AML compliance programs be reviewed and updated according to AMLA?
- Every five years
- Annually
- Only when new regulations are issued
✔✔ Periodically, and whenever there are significant changes in regulations or operations
What is a key requirement for customer due diligence (CDD) under AMLA?
- Only collect information when a transaction exceeds a certain amount
- Verify the identity of the customer and assess their risk profile
✔✔ Identify and verify the customer's identity and understand their financial activities
2
| LATEST UPDATE | GRADED A+
What is the primary focus of the Anti-Money Laundering Act (AMLA)?
- Enhancing corporate governance
- Promoting financial literacy
- Preventing and detecting money laundering and terrorist financing
✔✔ Regulating financial institutions and ensuring compliance with AML standards
Which of the following entities is typically required to comply with AMLA regulations?
- Non-profit organizations
✔✔ Banks and financial institutions
- Educational institutions
- Healthcare providers
Under AMLA, what must financial institutions do when they suspect a transaction involves
money laundering?
1
, - Ignore the transaction if it is small
- Report it only if the client is a PEP
✔✔ File a Suspicious Activity Report (SAR)
- Delay reporting until the end of the year
How often must AML compliance programs be reviewed and updated according to AMLA?
- Every five years
- Annually
- Only when new regulations are issued
✔✔ Periodically, and whenever there are significant changes in regulations or operations
What is a key requirement for customer due diligence (CDD) under AMLA?
- Only collect information when a transaction exceeds a certain amount
- Verify the identity of the customer and assess their risk profile
✔✔ Identify and verify the customer's identity and understand their financial activities
2
