Anti-Money Laundering Questions and
Answers | Latest Version | 2024/2025 |
Already Passed
What is the primary goal of anti-money laundering (AML) practices?
✔✔ The primary goal of anti-money laundering (AML) practices is to prevent, detect, and report
financial transactions that may involve illegal activities or financial crimes.
What is a common method used to launder money?
✔✔ A common method used to launder money is layering, which involves moving funds
through a series of complex transactions to obscure their origin.
What is the role of a Know Your Customer (KYC) policy in AML?
✔✔ The role of a Know Your Customer (KYC) policy in AML is to verify the identity of clients
and assess their financial activities to prevent illegal activities such as money laundering and
terrorist financing.
1
, What is a suspicious activity report (SAR), and why is it important?
✔✔ A suspicious activity report (SAR) is a document that financial institutions file with
regulatory authorities when they detect suspicious transactions that may involve illegal activities.
It is important for helping authorities investigate and combat financial crimes.
How do financial institutions identify and manage high-risk customers?
✔✔ Financial institutions identify and manage high-risk customers by conducting enhanced due
diligence, which includes more rigorous background checks, monitoring of transactions, and
frequent reviews of the customer's financial behavior.
What is the purpose of transaction monitoring in AML efforts?
✔✔ The purpose of transaction monitoring in AML efforts is to continuously review and analyze
financial transactions to detect patterns and anomalies that may indicate money laundering or
other financial crimes.
What are the key components of an effective AML compliance program?
2
Answers | Latest Version | 2024/2025 |
Already Passed
What is the primary goal of anti-money laundering (AML) practices?
✔✔ The primary goal of anti-money laundering (AML) practices is to prevent, detect, and report
financial transactions that may involve illegal activities or financial crimes.
What is a common method used to launder money?
✔✔ A common method used to launder money is layering, which involves moving funds
through a series of complex transactions to obscure their origin.
What is the role of a Know Your Customer (KYC) policy in AML?
✔✔ The role of a Know Your Customer (KYC) policy in AML is to verify the identity of clients
and assess their financial activities to prevent illegal activities such as money laundering and
terrorist financing.
1
, What is a suspicious activity report (SAR), and why is it important?
✔✔ A suspicious activity report (SAR) is a document that financial institutions file with
regulatory authorities when they detect suspicious transactions that may involve illegal activities.
It is important for helping authorities investigate and combat financial crimes.
How do financial institutions identify and manage high-risk customers?
✔✔ Financial institutions identify and manage high-risk customers by conducting enhanced due
diligence, which includes more rigorous background checks, monitoring of transactions, and
frequent reviews of the customer's financial behavior.
What is the purpose of transaction monitoring in AML efforts?
✔✔ The purpose of transaction monitoring in AML efforts is to continuously review and analyze
financial transactions to detect patterns and anomalies that may indicate money laundering or
other financial crimes.
What are the key components of an effective AML compliance program?
2
