Annual AML Training And Testing

60 Questions | Total Attempts: 609

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Annual AML Training And Testing

In this quiz on Annual AML Training and Testing, we’ll be taking a look at a handful of question regarding such topics as exposed persons, suspicious transactions, undue relationships, enhanced due diligence and much more. What can you tell us? Let’s find out right now!


Questions and Answers
  • 1. 
    Why is it so important to know that your client is the person they claim to be
    • A. 

      A) Because it is the law

    • B. 

      B) Because the relationship is based on the integrity of the representations

    • C. 

      C) Because identity theft is quite common

  • 2. 
    Who do you report a Suspicious Transaction to in your office
    • A. 

      A) The Board of Directors

    • B. 

      B) The President of the Bank

    • C. 

      C) The MLRO

    • D. 

      D) Senior Management

  • 3. 
    Who are categorized as exposed persons?
    • A. 

      A) Persons with credit exposures

    • B. 

      B) Persons whose hidden dealings are discovered

    • C. 

      C) Persons who have a level of influence, and are highly visible and accessible

  • 4. 
    Which of the following is not considered law subject to penalties, but for advice and direction which if ignored, may lead to sanctions under applicable law?
    • A. 

      A) Laws

    • B. 

      B) Regulations

    • C. 

      C) Guidelines

  • 5. 
    Which experiences below are not likely to have a negative effect on a bank's reputation?
    • A. 

      A) Outsourcing to a Service Provider without sufficient due diligence

    • B. 

      B) Stories within the local gossip column

    • C. 

      C) Employee non-compliance with confidential requirements

  • 6. 
    Where undue relationships are forged with bank employees, a common objective is for the purpose of
    • A. 

      A) Fraud through collusion

    • B. 

      B) More efficient service

    • C. 

      C) Negligence

  • 7. 
    Where an employee acts in such a way as to notify a client that a STR has been filed on their account, this is classified as
    • A. 

      A) Collusion

    • B. 

      B) Witness interference

    • C. 

      C) Tipping off

  • 8. 
    When considering a cash transaction, and having verified the identity of the depositor, the bank is most concerned with
    • A. 

      A) The intended use of the funds

    • B. 

      B) the amount of the deposit

    • C. 

      C) The source of the funds

  • 9. 
    What is not considered an element of a new client profile?
    • A. 

      A) Purpose of Account

    • B. 

      B) Nature and size of assets

    • C. 

      C) Account holder's political persuasion

    • D. 

      D) Account holder's identification

  • 10. 
    What is enhanced due diligence?
    • A. 

      A) When your company has special expertise in due diligence procedures

    • B. 

      B) When you rely on due diligence procedures performed by others

    • C. 

      C) When specific pre-defined circumstances occur, which demand increased due diligence

  • 11. 
    What component is the most important element in the prevention of money laundering?
    • A. 

      A) The Laws

    • B. 

      B) The Systems in Place

    • C. 

      C) The People within the System

  • 12. 
    Unincorporated entities compared to incorporated, attract an equal standard of due diligence.
    • A. 

      True

    • B. 

      False

  • 13. 
    To be labeled a PEP, one must be a Member of Parliament
    • A. 

      True

    • B. 

      False

  • 14. 
    To be classified as an eligible introducer, local entities should be:
    • A. 

      A) Licensed under a financial services regulator

    • B. 

      B) A reputable law firm

    • C. 

      C) Known to the bank

  • 15. 
    There are generally three stages of money laundering
    • A. 

      True

    • B. 

      False

  • 16. 
    The Wolfsberg Principles were composed by a consortium of Compliance Officers
    • A. 

      True

    • B. 

      False

  • 17. 
    The transaction monitoring program is most dependent on
    • A. 

      A) The assigned risk rating

    • B. 

      B) The frequency of deposits

    • C. 

      C) The policies of the bank

  • 18. 
    The threats we face as a jurisdiction relate only to accepting the proceeds of crime
    • A. 

      True

    • B. 

      False

  • 19. 
    The regulatory bodies within The Bahamas (for the purpose of Money Laundering does not include
    • A. 

      A) The Gaming Board

    • B. 

      B) The Business Licensing Authority

    • C. 

      C) The Insurance Commission

  • 20. 
    The profile of the prospective client determines a) Whether the prospect will be accepted b) The risk rating to be assigned, if accepted c) Whether mitigating controls should be considered
    • A. 

      A) A and B only

    • B. 

      B) B and C only

    • C. 

      C) A B and C

  • 21. 
    The preferable and more effective transaction monitoring system is one that is
    • A. 

      A) A combined automated and manual system

    • B. 

      B) An automated system only

    • C. 

      C) A fully manual system

  • 22. 
    The periodic client review is conducted not to determine
    • A. 

      A) Whether there has been any change in the client personal profile

    • B. 

      B) the transaction activity in comparison to the account profile

    • C. 

      C) Whether a change in risk rating is necessary

    • D. 

      D) Whether an 'ad-hoc' review has been conducted

  • 23. 
    The overriding Act which makes money laundering unlawful within The Bahamas is the
    • A. 

      A) Criminal Justice Act

    • B. 

      B) Proceeds of Crime Act

    • C. 

      C) The Evidence Act

  • 24. 
    The group of Financial Intelligence Units who collaborate for information sharing and assistance is called the
    • A. 

      A) Egmont Group

    • B. 

      C) FATF

    • C. 

      C) EU Directive

  • 25. 
    The Financial Action Task Force (FATF) is
    • A. 

      A) Composed of 25 member countries

    • B. 

      B) Headquartered in Brussels

    • C. 

      C) Made 40 Recommendations in 2003 used to measure effectiveness of AML regimes.

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