ACAMS Basic 3

Question 1

Under FinCEN's Customer Due Diligence (CDD) Rule, what is the beneficial ownership threshold that triggers identification requirements for legal entity customers?

Accepted Answer

25% or more ownership

Answer

The CDD Rule requires identification of any natural person owning 25% or more of a legal entity, plus one control person.

Question 2

Which category of customer typically requires Enhanced Due Diligence (EDD) measures?

Accepted Answer

Politically Exposed Persons (PEPs)

Answer

PEPs present elevated corruption and money laundering risk due to their access to public funds and political influence, necessitating EDD.

Question 3

What is the purpose of a Customer Risk Rating (CRR) in an AML program?

Accepted Answer

To categorize customers by their likelihood of posing money laundering risk

Answer

A CRR aggregates factors like geography, products used, and business type to classify customers as low, medium, or high risk for AML purposes.

Question 4

A 'shell company' is most accurately described as which of the following?

Accepted Answer

A legal entity with no significant assets or operations used to obscure ownership

Answer

Shell companies often have no real business activity and are used to layer ownership and obscure the true beneficial owner of assets.

Question 5

What does 'source of funds' verification in CDD refer to?

Accepted Answer

Identifying the income or asset origin that funds a customer's transactions

Answer

Source of funds verification establishes the legitimate origin of the money a customer is using, helping detect illicit proceeds.

(ACAMS) Association of Certified Anti-Money Laundering Specialists Practice Test

(ACAMS) Association of Certified Anti-Money Laundering Specialists Practice Test

ACAMS Basic 3