1|Page
AML QUIZ CHAPTER 1; COMPREHENSIVE
QUESTIONS WITH CORRECT ANSWERS
What is money laundering? - correct-answer-Claiming illegal funds as a legitimate
business transaction
Who oversees money laundering? - correct-answer-federal regulations like the
USA PATRIOT Act,
What is the job of the compliance officer? - correct-answer-The compliance
officer is the person responsible for the day-to-day operation of the company's
AML program and for ensuring that the requirements or steps laid out in the
program are fully implemented and followed.
The USA PATRIOT Act requires that financial institutions to - correct-answer-
"maintain internal policies, procedures and controls to help identify and report
potential money laundering transactions."
What is a policy document - correct-answer-a company's AML program is
published in a written policy document that must be made available to the
Treasury Department or FinCEN upon request.
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. Under the BSA, financial institutions are required to - correct-answer-"identify,
assess, and mitigate" the money laundering risks they face.
One of the most important AML rules is - correct-answer-Know Your Customer
At a minimum, companies must identify the following customer information: -
correct-answer-full legal name
date of birth
residential address (no P.O. boxes)
Social Security number or tax identification number
Companies must determine, within a reasonable period after an account is
opened or a policy is purchased, whether the applicant's name appears on a list of
known or suspected money launderers, terrorist organizations, and other
criminals maintained by the Treasury Department's Office of Foreign Assets
Control (OFAC), - correct-answer-Specially Designated Nationals and Blocked
Persons list.
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A ____must be given to every applicant for a covered product. - correct-answer-a
Notice to Customer
What is The purpose of a Notice to Customer - correct-answer-to disclose the
company's intent to verify the customer's name and personal information
What is the opening statement in the AML Policy Document - correct-answer-A
statement of policy and principles
What is the goal of the statement of policy and principles - correct-answer-It may
define money laundering and terrorist financing.
What is scope of statement of policy and principles - correct-answer-it identifys
company associates who are subject to the policy. Typically, its scope includes all
employees, officers, and appointed producers. Presumably the AML policy does
not apply to company shareholders or policyholders.
the AML Policy Document contains - correct-answer-A statement of policy and
principles, scope, covered products, Customer identification program, Monitoring
and reporting, Investigation and Record-keeping
AML QUIZ CHAPTER 1; COMPREHENSIVE
QUESTIONS WITH CORRECT ANSWERS
What is money laundering? - correct-answer-Claiming illegal funds as a legitimate
business transaction
Who oversees money laundering? - correct-answer-federal regulations like the
USA PATRIOT Act,
What is the job of the compliance officer? - correct-answer-The compliance
officer is the person responsible for the day-to-day operation of the company's
AML program and for ensuring that the requirements or steps laid out in the
program are fully implemented and followed.
The USA PATRIOT Act requires that financial institutions to - correct-answer-
"maintain internal policies, procedures and controls to help identify and report
potential money laundering transactions."
What is a policy document - correct-answer-a company's AML program is
published in a written policy document that must be made available to the
Treasury Department or FinCEN upon request.
,2|Page
. Under the BSA, financial institutions are required to - correct-answer-"identify,
assess, and mitigate" the money laundering risks they face.
One of the most important AML rules is - correct-answer-Know Your Customer
At a minimum, companies must identify the following customer information: -
correct-answer-full legal name
date of birth
residential address (no P.O. boxes)
Social Security number or tax identification number
Companies must determine, within a reasonable period after an account is
opened or a policy is purchased, whether the applicant's name appears on a list of
known or suspected money launderers, terrorist organizations, and other
criminals maintained by the Treasury Department's Office of Foreign Assets
Control (OFAC), - correct-answer-Specially Designated Nationals and Blocked
Persons list.
, 3|Page
A ____must be given to every applicant for a covered product. - correct-answer-a
Notice to Customer
What is The purpose of a Notice to Customer - correct-answer-to disclose the
company's intent to verify the customer's name and personal information
What is the opening statement in the AML Policy Document - correct-answer-A
statement of policy and principles
What is the goal of the statement of policy and principles - correct-answer-It may
define money laundering and terrorist financing.
What is scope of statement of policy and principles - correct-answer-it identifys
company associates who are subject to the policy. Typically, its scope includes all
employees, officers, and appointed producers. Presumably the AML policy does
not apply to company shareholders or policyholders.
the AML Policy Document contains - correct-answer-A statement of policy and
principles, scope, covered products, Customer identification program, Monitoring
and reporting, Investigation and Record-keeping
