CCO Anti-Money Laundering and Financial Crimes 3

Question 1

What is the Financial Action Task Force (FATF)?

Accepted Answer

An intergovernmental body that sets international AML and counter-terrorist financing standards

Answer

FATF is the global standard-setter for anti-money laundering and counter-terrorist financing policies, whose recommendations countries are expected to implement.

Question 2

What is beneficial ownership in AML compliance?

Accepted Answer

The natural person(s) who ultimately own or control a legal entity, even if ownership is indirect

Answer

Beneficial ownership identifies the real human beings who ultimately own or control a company, preventing criminals from hiding behind shell companies.

Question 3

Under FinCEN's Customer Due Diligence rule, covered financial institutions must identify beneficial owners holding what percentage or more of a legal entity?

Accepted Answer

25%

Answer

FinCEN's CDD rule requires identifying all beneficial owners holding 25% or more equity in a legal entity customer.

Question 4

What is terrorist financing and how does it differ from money laundering?

Accepted Answer

Terrorist financing funds violent acts and can involve legitimate money moved for criminal purposes, while money laundering conceals illegally obtained funds

Answer

While money laundering cleans dirty money, terrorist financing can involve clean money being directed to fund illegal violent activities.

Question 5

What is the role of an AML compliance officer?

Accepted Answer

To oversee the AML program, ensure regulatory compliance, conduct training, and act as liaison with regulators and law enforcement

Answer

The AML compliance officer is responsible for designing, implementing, and overseeing the institution's AML program and regulatory obligations.

CCO - Chief Compliance Officer Practice Test

CCO - Chief Compliance Officer Practice Test

CCO Anti-Money Laundering and Financial Crimes 3