Anti-Money Laundering Flashcards
7 cards from real Banking practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Anti-Money Laundering flashcards as text
What does 'de-risking' mean in the context of AML compliance?
Answer: Banks terminating or restricting relationships with entire categories of high-risk customers
De-risking occurs when banks exit entire customer categories deemed too costly or risky to monitor, rather than managing risk through enhanced due diligence.
Under the USA PATRIOT Act Section 314(a), FinCEN can require financial institutions to search their records for accounts or transactions associated with:
Answer: Suspects of money laundering or terrorist financing identified by law enforcement
Section 314(a) allows law enforcement to request that financial institutions search their records for accounts linked to specific suspects in money laundering or terrorist financing investigations.
Which statement about SAR confidentiality is CORRECT?
Answer: SARs and the fact that one has been filed are strictly confidential and protected from disclosure
Federal law strictly prohibits disclosure of SARs or even the fact that a SAR has been filed, protecting the integrity of investigations and the filer from liability.
A bank's AML training program must cover which of the following employee groups?
Answer: All bank personnel, including senior management and the board
Effective AML training must be provided to all employees whose jobs could relate to BSA compliance, including senior management and the board of directors.
What is the minimum dollar threshold for a transaction to potentially require a SAR filing related to insider abuse?
Answer: No minimum threshold — any amount is reportable
When a bank employee or insider is involved, there is no minimum dollar threshold for SAR filing; even small amounts must be reported if insider abuse is suspected.
Which of the following best describes 'hawala' as an AML concern?
Answer: An informal value transfer system that moves money without physical transfer of currency
Hawala is an informal system where brokers transfer value through a network of trusted intermediaries, leaving little or no paper trail and posing significant AML risks.
Which factor would most increase a customer's AML risk rating at account opening?
Answer: The customer is a cash-intensive business operating in a high-risk geographic area
Cash-intensive businesses in high-risk jurisdictions combine two major AML risk factors—business type and geography—significantly elevating the customer's risk profile.