AML EXAM 3 Questions With 100%
Correct Answers
According to the AML/CTF risk categories _____ customers may include politically exposed
persons or certain types of money services businesses or cash intensive businesses.
a. Prohibited
b. High Risk
c. Medium Risk
d. Low Risk - answerb. High ri...
AML EXAM 3 Questions With 100% Correct Answers According to the AML/CTF risk categories _____ customers may include politically exposed persons or certain types of money services businesses or cash intensive businesses. a. Prohibited b. High Risk c. Medium Risk d. Low Risk - answer✔✔b. High risk When assessing the money laundering risks of various territories and countries, which of the following can a financial institution consider? a. The terrorism and sanctions lists published by governments and intentional organ izations b. the overall reputation of the countries in question c. updates and inputs from major news media d. all of the above - answer✔✔d. All of the above When assesing risk, FATF recommends considering all of the following, EXCEPT: a. Employee risk fa ctors b. customer risk factors c. country or geographic risk factors d. products/ services risk factors - answer✔✔A. employee risk factors Which of the following best describes the "second line of defense" in an AML/CTF program? a. an ongoing employee training program b. an idependent audit test the overall effectiveness of the AML program c. A designated compliance function with a compliance officer d. a system of internal policies, procedures and controls - answer✔✔c. a designa ted compliance function with a compliance officer Economic sanctions are a way to financially isolate a target. All of the following are categories of economic sanctions, EXCEPT: a. Targeted sanctions b. monetary sanctions c. sectoral sanctions d. compreh ensive sanctions - answer✔✔b. Monetary sanctions A financial institution is concerned about the possibility of the proceeds from human trafficking being funneled through the institution. The institution should be concerned about and be on the lookout for a ll of the following except: a. a group of four women visiting the financial institution together, but on separate accounts b. multiple wire transfers, often below the reporting thresholds, sent from foreign countries c. multiple unrelated individuals sendi ng wires to the same beneficiary d. accounts for foreign workers where the employment agency is the custodian for the accounts - answer✔✔A. a group of four women visiting the financial institution together, but to open separate accounts Banks should verify the identity of the customer using reliable, independent source documents, data or information. All of the following are methods of non -documentary verification EXCEPT: a. Validating the legal entity identifier and associated data in the public access ser vice b. reviewing a copy of financial statements (audited, if available) c. contacting the corporate entity by telephone, mail or email. d. visiting the corporate entity, where practical - answer✔✔c. contacting the corporate entity by telephone, mail or e mail In AML terminology, a red -flag is : a. warning sign indicating potentially suspicious and risky transactions or activities b. general banking term used once the balance is negative/overdue c. the standard flag of countries not cooperative in fighting money laundering and terrorist financing d. an indicator that a customer is listed on an economic sanctions list - answer✔✔a. warning sign indicating potentially suspicious and risky transactions or activities
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