AML EXAM QUESTIONS WITH 100%
CORRECT ANSWERS | LATEST
VERSION 2025/2026.
Which of the following statements best describes the money laundering process? -
ANS Illegal money is converted to seemingly legal money.
Which stage of the money laundering process involves carrying out a series of financial
transactions to hide the illicit source of the funds? - ANS Layering
Depositing illicit money in a financial institution is an example of - ANS Placement
Integration occurs when - ANS illegal money is mixed with legitimate business earnings
Which of the following is the international standard for combating money laundering activities?
- ANS The FATF's Forty Recommendations
Which of the following is NOT a basic requirement for anti-money laundering programs? -
ANS Compliance with FATF's Nine Special Recommendations on Terrorist Financing
Basic requirements of anti-money laundering programs include: - ANS development of
policies, procedures, and internal controls designed to detect and prevent money laundering;
designation of an executive-level internal compliance officer; creation of an employee training
program; and development of an independent audit function.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, A suspicious activity report (SAR) must be filed on any transaction that involves at least how
much in funds or other assets? - ANS $5,000
A Currency Transaction Report (CTR) - ANS is generally required when an insurer receives
more than $10,000 in cash in one transaction or in two or more related transactions.
Why are agents and brokers not individually or independently required to create their own anti-
money laundering programs? - ANS Insurers are in the best position to maintain AML
programs.
AML programs must focus on covered insurance products because - ANS they are likely to
present a higher degree of risk for money laundering.
Which of the following is NOT a core component of the AML program requirement? -
ANS Membership in the FATF.
three items are identified as core components of the AML program requirement. - ANS the
program must be in writing, approved by senior management, and made available to the US
Treasury Department upon request.
Who determines which methods of payment are acceptable for the purchase of insurance
policies? - ANS Insurance company issuing the policy
Why is it necessary to monitor wire transfers from one country to another country? -
ANS The transfer ensures that the insurance company does not accept or send funds to an
OFAC-blocked party.
Which of the following is NOT a reason why a financial institution would have a know your
customer program? - ANS To determine whether or not its program meets the requirements
of the Bank Secrecy Act.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
CORRECT ANSWERS | LATEST
VERSION 2025/2026.
Which of the following statements best describes the money laundering process? -
ANS Illegal money is converted to seemingly legal money.
Which stage of the money laundering process involves carrying out a series of financial
transactions to hide the illicit source of the funds? - ANS Layering
Depositing illicit money in a financial institution is an example of - ANS Placement
Integration occurs when - ANS illegal money is mixed with legitimate business earnings
Which of the following is the international standard for combating money laundering activities?
- ANS The FATF's Forty Recommendations
Which of the following is NOT a basic requirement for anti-money laundering programs? -
ANS Compliance with FATF's Nine Special Recommendations on Terrorist Financing
Basic requirements of anti-money laundering programs include: - ANS development of
policies, procedures, and internal controls designed to detect and prevent money laundering;
designation of an executive-level internal compliance officer; creation of an employee training
program; and development of an independent audit function.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, A suspicious activity report (SAR) must be filed on any transaction that involves at least how
much in funds or other assets? - ANS $5,000
A Currency Transaction Report (CTR) - ANS is generally required when an insurer receives
more than $10,000 in cash in one transaction or in two or more related transactions.
Why are agents and brokers not individually or independently required to create their own anti-
money laundering programs? - ANS Insurers are in the best position to maintain AML
programs.
AML programs must focus on covered insurance products because - ANS they are likely to
present a higher degree of risk for money laundering.
Which of the following is NOT a core component of the AML program requirement? -
ANS Membership in the FATF.
three items are identified as core components of the AML program requirement. - ANS the
program must be in writing, approved by senior management, and made available to the US
Treasury Department upon request.
Who determines which methods of payment are acceptable for the purchase of insurance
policies? - ANS Insurance company issuing the policy
Why is it necessary to monitor wire transfers from one country to another country? -
ANS The transfer ensures that the insurance company does not accept or send funds to an
OFAC-blocked party.
Which of the following is NOT a reason why a financial institution would have a know your
customer program? - ANS To determine whether or not its program meets the requirements
of the Bank Secrecy Act.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
