AML Practice Exam Questions and
Answers | Latest Version | 2024/2025 |
Rated A+
What is the main objective of Anti-Money Laundering (AML) policies?
- To increase profits
- To simplify financial transactions
- To facilitate business growth
✔✔ To prevent and detect money laundering activities
Which document is essential for reporting suspicious activities?
- Transaction report
- Customer identification form
- Account statement
✔✔ Suspicious Activity Report (SAR)
What is one method commonly used to launder money?
1
,- Buying assets outright
- Directly transferring funds between accounts
- Making cash deposits
✔✔ Structuring transactions to avoid detection
Which government body is often responsible for enforcing AML laws?
- Federal Trade Commission
- Securities and Exchange Commission
- Internal Revenue Service
✔✔ Financial Crimes Enforcement Network (FinCEN)
What is the purpose of the “Know Your Customer” (KYC) process?
- To increase customer satisfaction
- To streamline account opening procedures
✔✔ To verify the identity of clients and assess risk
2
,- To improve customer service
How often should financial institutions review and update their AML policies?
- Once every five years
- Only when there is a regulatory change
- Annually, on a fixed schedule
✔✔ Regularly, to ensure ongoing compliance and effectiveness
What is an example of a high-risk client in AML terms?
- A local small business owner
- An individual with a stable employment history
✔✔ An individual from a country with a high incidence of money laundering
- A long-time account holder
What is the role of AML training for employees?
3
, - To improve job performance
- To reduce operational costs
✔✔ To ensure staff can recognize and report suspicious activities
- To enhance employee benefits
What type of transactions might trigger a currency transaction report (CTR)?
- Transactions below $1,000
✔✔ Transactions over $10,000
- Routine monthly deposits
- Transactions involving international transfers
What is the key benefit of using automated AML monitoring systems?
- Reducing staffing costs
- Enhancing customer service
✔✔ Enhancing the detection and reporting of suspicious activities
- Speeding up account approvals
4
Answers | Latest Version | 2024/2025 |
Rated A+
What is the main objective of Anti-Money Laundering (AML) policies?
- To increase profits
- To simplify financial transactions
- To facilitate business growth
✔✔ To prevent and detect money laundering activities
Which document is essential for reporting suspicious activities?
- Transaction report
- Customer identification form
- Account statement
✔✔ Suspicious Activity Report (SAR)
What is one method commonly used to launder money?
1
,- Buying assets outright
- Directly transferring funds between accounts
- Making cash deposits
✔✔ Structuring transactions to avoid detection
Which government body is often responsible for enforcing AML laws?
- Federal Trade Commission
- Securities and Exchange Commission
- Internal Revenue Service
✔✔ Financial Crimes Enforcement Network (FinCEN)
What is the purpose of the “Know Your Customer” (KYC) process?
- To increase customer satisfaction
- To streamline account opening procedures
✔✔ To verify the identity of clients and assess risk
2
,- To improve customer service
How often should financial institutions review and update their AML policies?
- Once every five years
- Only when there is a regulatory change
- Annually, on a fixed schedule
✔✔ Regularly, to ensure ongoing compliance and effectiveness
What is an example of a high-risk client in AML terms?
- A local small business owner
- An individual with a stable employment history
✔✔ An individual from a country with a high incidence of money laundering
- A long-time account holder
What is the role of AML training for employees?
3
, - To improve job performance
- To reduce operational costs
✔✔ To ensure staff can recognize and report suspicious activities
- To enhance employee benefits
What type of transactions might trigger a currency transaction report (CTR)?
- Transactions below $1,000
✔✔ Transactions over $10,000
- Routine monthly deposits
- Transactions involving international transfers
What is the key benefit of using automated AML monitoring systems?
- Reducing staffing costs
- Enhancing customer service
✔✔ Enhancing the detection and reporting of suspicious activities
- Speeding up account approvals
4
