AML And KYC Compliance In FinTech: Questions &
Accurate Answers
Fintech compliance Right Ans - Ensuring adherence to financial
regulations and laws.
Anti-Money Laundering (AML) Right Ans - Laws preventing disguising
crime proceeds as legitimate funds.
Customer Due Diligence (CDD) Right Ans - Identifying and verifying
customer identities and activities.
Enhanced Due Diligence (EDD) Right Ans - In-depth scrutiny for high-
risk customers or transactions.
Ongoing monitoring Right Ans - Continuous observation of customer
transactions for suspicious activities.
Reporting Right Ans - Mandatory disclosure of suspicious transactions
to authorities.
Record-keeping Right Ans - Maintaining transaction and due diligence
records for compliance.
Risk assessment Right Ans - Regular evaluation of money laundering
and financing risks.
Training Right Ans - Educating employees on AML regulations and
suspicious activity identification.
Market stability Right Ans - Ensuring fair competition between fintech
and traditional institutions.
Legal and regulatory requirements Right Ans - Obligations to comply
with laws to avoid penalties.
Protection of stakeholders Right Ans - Safeguarding interests of
customers and investors from fraud.
, Reputation and trust Right Ans - Building customer loyalty through
compliance measures.
USA PATRIOT Act Right Ans - U.S. law mandating AML programs post-
9/11 attacks.
Bank Secrecy Act (BSA) Right Ans - U.S. law requiring transaction
reporting to combat money laundering.
EU AML Directive Right Ans - EU requirement for member states to
establish AML regulations.
Financial Action Task Force (FATF) Right Ans - International body
promoting global AML standards.
Proceeds of Crime Act (POCA) Right Ans - UK law criminalizing money
laundering and asset forfeiture.
AML/CFT Act Right Ans - New Zealand law enforcing AML programs and
reporting.
Financial Intelligence Unit (FIU) Right Ans - Agency receiving reports of
suspicious financial activities.
Compliance measures Right Ans - Procedures to ensure adherence to
financial regulations.
Transparency Right Ans - Clear visibility of financial transactions to
prevent crime.
Cyber threats Right Ans - Risks associated with online financial
transactions.
Data breaches Right Ans - Unauthorized access to sensitive customer
information.
Financial crimes Right Ans - Illegal activities involving money, such as
fraud.
Accurate Answers
Fintech compliance Right Ans - Ensuring adherence to financial
regulations and laws.
Anti-Money Laundering (AML) Right Ans - Laws preventing disguising
crime proceeds as legitimate funds.
Customer Due Diligence (CDD) Right Ans - Identifying and verifying
customer identities and activities.
Enhanced Due Diligence (EDD) Right Ans - In-depth scrutiny for high-
risk customers or transactions.
Ongoing monitoring Right Ans - Continuous observation of customer
transactions for suspicious activities.
Reporting Right Ans - Mandatory disclosure of suspicious transactions
to authorities.
Record-keeping Right Ans - Maintaining transaction and due diligence
records for compliance.
Risk assessment Right Ans - Regular evaluation of money laundering
and financing risks.
Training Right Ans - Educating employees on AML regulations and
suspicious activity identification.
Market stability Right Ans - Ensuring fair competition between fintech
and traditional institutions.
Legal and regulatory requirements Right Ans - Obligations to comply
with laws to avoid penalties.
Protection of stakeholders Right Ans - Safeguarding interests of
customers and investors from fraud.
, Reputation and trust Right Ans - Building customer loyalty through
compliance measures.
USA PATRIOT Act Right Ans - U.S. law mandating AML programs post-
9/11 attacks.
Bank Secrecy Act (BSA) Right Ans - U.S. law requiring transaction
reporting to combat money laundering.
EU AML Directive Right Ans - EU requirement for member states to
establish AML regulations.
Financial Action Task Force (FATF) Right Ans - International body
promoting global AML standards.
Proceeds of Crime Act (POCA) Right Ans - UK law criminalizing money
laundering and asset forfeiture.
AML/CFT Act Right Ans - New Zealand law enforcing AML programs and
reporting.
Financial Intelligence Unit (FIU) Right Ans - Agency receiving reports of
suspicious financial activities.
Compliance measures Right Ans - Procedures to ensure adherence to
financial regulations.
Transparency Right Ans - Clear visibility of financial transactions to
prevent crime.
Cyber threats Right Ans - Risks associated with online financial
transactions.
Data breaches Right Ans - Unauthorized access to sensitive customer
information.
Financial crimes Right Ans - Illegal activities involving money, such as
fraud.
