AML/CFT Training Awareness Session 2023 - Post Training Assessment

What provide the critical framework that enables the firm to comply with regulatory CDD requirements?

Effective CDD procedures

Effective CDD policies

All of these

High-risk customers would have to go through.

Enhanced Due Diligence (EDD)

Simplified Due Diligence

Standard Due Diligence (SDD)

None of these

An entity shall obtain information about the purpose and nature of the business relationship on the basis of.

Only an assessment of the activities and transactions that can be expected of the customer in the context of the business relationship

Only the risk classification of the customer

Both an assessment of the activities and transactions that can be expected of the customer in the context of the business relationship and a risk classification of the customer

None of these

What does CDD helps an entity to?

Adhering to safe and sound banking practices.

Detecting and reporting unusual or suspicious activity that potentially exposes the entity to financial loss, increased expenses, or other risks.

Avoiding criminal exposure from persons who use or attempt to use the entity's products and services for illicit purposes.

All of these

What might be considered a red flag in customer interactions?

Long-term relationships with loyal customers

High customer satisfaction ratings

Efficient handling of customer complaints

Sudden and unexplained changes in customer buying patterns

What is a common example of "Phishing" as a fraud scheme?

Falsifying financial statements

Manipulating internal controls

Sending deceptive emails to obtain sensitive information

Misappropriating company funds

How do lookup and reference functions aid in real-time fraud detection?

By accepting all fraudulent activities

By retrieving and comparing data in real-time for anomalies

By ignoring potential fraud risks

By focusing solely on known fraud schemes

What is the significance of transaction monitoring in fraud detection?

It has no role in fraud prevention

It identifies suspicious activities after they occur

It helps in flagging potential fraudulent transactions in real-time

None of the above

What role does machine learning play in fraud monitoring tools?

Focusing solely on known fraud schemes

Reacting to past fraudulent activities

Analyzing only historical fraud data

Predicting future fraud patterns accurately

What role does risk assessment play in resource allocation for fraud prevention?

Allocating resources based on identified fraud risks

Identifying all potential fraudsters

Monitoring employee compliance with fraud policies

Distributing blame for fraudulent activities

What role does fraud monitoring play in fraud prevention efforts?

Identifying every potential fraud pattern

Reacting to past fraudulent activities

Recognizing and flagging unusual activities or behaviors

Focusing solely on historical fraud trends

What is the main objective of utilizing risk-based monitoring systems?

Analyzing historical fraud data

Focusing solely on known fraud schemes

Evaluating and prioritizing potential fraud risks

Predicting the exact timing of future fraud incidents

What can be the effect of not addressing money laundering risks?

Damage to corporate reputation and loss of goodwill

Legal and regulatory actions

Negative publicity

All of these

As per FATF, which level is suitable for high risk customers?

Standard Due Diligence (SDD)

Enhanced Due Diligence (EDD)

Simplified Due Diligence

None of these

When should financial institution should implement CDD measures?

Transactions that involve entities in high-risk foreign countries

New business relationships

Transactions involving amounts of money that exceed regulatory threshold

All of these

Which of the following risk factors must be considered before establishing relationship with customer?

Country/geographic risk

Customer risk

Product/ service/transactions and distribution channel risks

All of these

What are generally important customer due diligence procedures when onboarding a client?

Identity the Ultimate Beneficiary Owners

Verification Source of Funds

Identity the Ultimate Beneficiary Owners & Verification Source of Funds

None of the above

CDD is required for:

All continuing business relationships

Both all new and continuing business relationships

All new business relationships

None of these

Which factor is not considered by an institution when deciding to close an account?

The importance of the account to the firm's business success

Whether the conduct has risen to a level where an account would ordinarily be closed

Communication with law enforcement and requests from law enforcement to close or maintain the account

The reputational risk to the firm

Which of the following terms is used to describe the process of sending money through multiple financial institutions to make it difficult to track?

Placement

Layering

Integration

Camouflage

AML/CFT Training Awareness Session 2023 - Post Training Assessment

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