AML Exam 2026 Questions and Answers
Which of the following statements best describes the money laundering process? -
Correct answer-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? - Correct answer-
Layering
Depositing illicit money in a financial institution is an example of - Correct
answer-Placement
Integration occurs when - Correct answer-illegal money is mixed with legitimate
business earnings
Which of the following is the international standard for combating money
laundering activities? - Correct answer-The FATF's Forty Recommendations
Which of the following is NOT a basic requirement for anti-money laundering
programs? - Correct answer-Compliance with FATF's Nine Special
Recommendations on Terrorist Financing
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, Basic requirements of anti-money laundering programs include: - Correct answer-
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.
A suspicious activity report (SAR) must be filed on any transaction that involves at
least how much in funds or other assets? - Correct answer-$5,000
A Currency Transaction Report (CTR) - Correct answer-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? - Correct answer-Insurers are in the
best position to maintain AML programs.
AML programs must focus on covered insurance products because - Correct
answer-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? - Correct answer-Membership in the FATF.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Which of the following statements best describes the money laundering process? -
Correct answer-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? - Correct answer-
Layering
Depositing illicit money in a financial institution is an example of - Correct
answer-Placement
Integration occurs when - Correct answer-illegal money is mixed with legitimate
business earnings
Which of the following is the international standard for combating money
laundering activities? - Correct answer-The FATF's Forty Recommendations
Which of the following is NOT a basic requirement for anti-money laundering
programs? - Correct answer-Compliance with FATF's Nine Special
Recommendations on Terrorist Financing
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, Basic requirements of anti-money laundering programs include: - Correct answer-
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.
A suspicious activity report (SAR) must be filed on any transaction that involves at
least how much in funds or other assets? - Correct answer-$5,000
A Currency Transaction Report (CTR) - Correct answer-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? - Correct answer-Insurers are in the
best position to maintain AML programs.
AML programs must focus on covered insurance products because - Correct
answer-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? - Correct answer-Membership in the FATF.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
