Preview Questions AML Specialist | Role Specific Skill

Question 1: In AML compliance, what is the significance of the Sanctions List Screening?

Which action should you take?

Choose only one option

To track transaction amounts across borders

To monitor for currency exchange rate fluctuations

To identify potential fraud risks associated with customers

To ensure that financial transactions are not conducted with sanctioned individuals or entities

Question 2: Which of the following fraud detection tools is most effective in preventing synthetic identity fraud in the BFSI industry?

Which action should you take?

Choose only one option

Verifying income with pay stub documents

Monitoring email addresses linked to multiple accounts

Conducting frequent credit score checks on all customers

Cross-referencing new customer data with multiple public and private databases

Question 3: How does reporting to regulators during an AML investigation differ from internal reporting within a financial institution?

Which action should you take?

Choose only one option

Regulatory reporting must include detailed information and comply with regulatory guidelines

Internal reporting requires less detail

Internal reporting is done on a monthly basis

Regulatory reporting only happens if requested by the customer

Question 4: Which AML compliance standard requires financial institutions to apply appropriate due diligence to politically exposed persons (PEPs)?

Which action should you take?

Choose only one option

FATF Recommendation 12

FATF Recommendation 10

FATF Recommendation 4

FATF Recommendation 8

Question 5: Which of the following is not a typical fraud detection technique used to combat internal fraud in the BFSI industry?

Which action should you take?

Choose only one option

Implementing external surveillance systems to track employees

Monitoring employees' online behavior and work activities

Segregating duties to prevent unauthorized access to financial systems

Limiting access to sensitive information based on job roles

Question 6: How does machine learning help in improving the accuracy of fraud detection systems?

Which action should you take?

Choose only one option

By blocking transactions in real-time based on rigid criteria

By learning from patterns and improving predictions over time without explicit programming

By automating the manual review of every transaction

By providing predefined rules for all fraud cases