CCO Anti-Money Laundering and Financial Crimes

Question 1

What are the three stages of the money laundering process?

Accepted Answer

Placement, layering, and integration

Answer

Reporting, monitoring, and sanctioning

Answer

Detection, investigation, and prosecution

Answer

Sourcing, transferring, and concealing

Question 2

What does a Suspicious Activity Report (SAR) require from a financial institution?

Accepted Answer

Confidential filing with FinCEN when suspicious transactions are detected

Answer

Immediate freezing of the customer's account

Answer

Public disclosure to law enforcement

Answer

Notification to the customer that they are under review

Question 3

What is the Bank Secrecy Act (BSA)?

Accepted Answer

The primary US anti-money laundering law requiring financial institutions to assist government agencies in detecting and preventing money laundering

Answer

A law requiring banks to keep customer information secret

Answer

A regulation governing international wire transfers only

Answer

A law preventing banks from sharing data with third parties

Question 4

What is 'Know Your Customer' (KYC)?

Accepted Answer

The process of verifying customer identity and assessing financial crime risk before and during a business relationship

Answer

A customer service initiative

Answer

A marketing segmentation strategy

Answer

A credit scoring method

Question 5

What is a Currency Transaction Report (CTR)?

Accepted Answer

A mandatory report filed with FinCEN for cash transactions exceeding $10,000

Answer

A report for foreign exchange transactions only

Answer

A voluntary fraud notification

Answer

A report filed by customers for large purchases

Question 6

What is 'structuring' in the context of AML?

Accepted Answer

Deliberately breaking up transactions to avoid CTR reporting thresholds

Answer

Organizing a compliance department

Answer

Building a financial model

Answer

Layering investments across asset classes