Preview Questions AML Specialist | Role Specific Skill

Question 1: What is the purpose of the Know Your Customer (KYC) process in the context of anti-money laundering?

Which action should you take?

Choose only one option

To prevent tax evasion in financial transactions

To verify the identity and assess the risks of potential clients

To track the frequency of financial transactions

To ensure compliance with GDPR regulations

Question 2: Which of the following best describes a shell company, often used in money laundering schemes?

Which action should you take?

Choose only one option

A company that specializes in financial transactions for clients

A company that exists only on paper, with no real operations

A company that conducts substantial transactions across borders

A company that is involved in legal financial activities

Question 3: What is the significance of the Money Laundering Control Act of 1986 in the US?

Which action should you take?

Choose only one option

It criminalized money laundering and required financial institutions to establish AML procedures

It simplified the process of cross-border financial transactions

It introduced a new tax reporting system

It established a regulatory body for financial fraud

Question 4: In the context of fraud detection, which of the following is not typically part of the fraud risk mitigation strategy?

Which action should you take?

Choose only one option

Ensuring a one-size-fits-all approach for all customer segments

Implementing multi-factor authentication for online transactions

Regularly updating fraud detection algorithms based on emerging threats

Maintaining a robust monitoring system for unusual transaction patterns

Question 5: What is the primary purpose of a customer due diligence (CDD) program in AML procedures?

Which action should you take?

Choose only one option

To assess the tax status of customers

To track customers' transactions

To evaluate the creditworthiness of customers

To ensure that customers are not involved in money laundering activities

Question 6: Under the European Union's 4th Anti-Money Laundering Directive, what is the requirement for risk-based approach?

Which action should you take?

Choose only one option

Financial institutions must report all transactions over ?5,000

Financial institutions must block transactions above ?1,000

Financial institutions must assess the risks associated with each client

Financial institutions must verify the identity of each client monthly