AML KYC Quiz Individual – Edifice Global Market Limited

Individual - Quiz

1.

Which intergovernmental organization sets international standards for Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) to protect the global central banking systems?

World Bank

International Monetary Fund (IMF)

Financial Action Task Force (FATF)

United Nations (UN)

1 out of 6

2.

What is the significance of a Politically Exposed Person (PEP) in KYC/CFT processes?

PEPs are exempt from KYC requirements

PEPs are considered low-risk customers

PEPs pose a higher risk of involvement in bribery or corruption

PEPs are not allowed to open bank accounts

2 out of 6

3.

In the context of KYC/CFT, what is the purpose of a "Source of Wealth" (SoW) and "Source of Funds" (SoF) investigation?

To determine the customer's spending habits

To verify the origin of a customer's overall wealth (SoW) and the origin of funds used in a specific transaction (SoF)

To assess the customer's creditworthiness

To identify the customer's preferred investment strategies

3 out of 6

4.

OFAC would not catch a non-US person if he/she were outside the US, but it had caused a US person to breach OFAC, so a sanctioned payer could not identify the payment.

True

False

4 out of 6

5.

Before engaging with a fintech provider, an organization must ensure that the provider complies with KYC/KYB regulations. Which of the following is the MOST critical due diligence step the origination should take?

Verify that the fintech provider has a user-friendly mobile app

Confirm that the fintech provider has a robust customer support team

Assess whether the fintech provider has implemented a risk-based approach (RBA) to identify and verify customers and beneficial owners

Ensure the fintech provider offers the lowest transaction fees in the market

5 out of 6

6.

A licensed company's Money Laundering Reporting Officer (MLRO) is investigating a high-risk client for potential money laundering. The client contacts the company and demands to know why their transactions are delayed. What is the MOST appropriate action for the MLRO to avoid "tipping off"?

Inform the client that the delay is due to a suspected money laundering investigation

Explain that a routine system upgrade causes the delay and avoid disclosing any details about the investigation

Share the preliminary findings of the investigation with the client to justify the delay

Advise the client to contact the Joint Financial Intelligence Unit (JFIU) directly for an explanation

6 out of 6