CME-1 Anti-Money Laundering

Question 1

What is the primary Saudi legislation governing anti-money laundering?

Accepted Answer

Anti-Money Laundering Law issued by Royal Decree M/31

Answer

Capital Market Law

Answer

Banking Control Law

Answer

Commercial Court Law

Question 2

What does 'Know Your Customer' (KYC) require authorized persons to do?

Accepted Answer

Verify customer identity, assess risk, and maintain updated records

Answer

Memorize customer names

Answer

Only collect copies of national IDs

Answer

Report all customers to the CMA

Question 3

What is a Suspicious Transaction Report (STR) and who must file it?

Accepted Answer

A report filed by financial institutions to the Saudi Financial Intelligence Unit when suspicious activity is detected

Answer

A quarterly report filed by the CMA only

Answer

A customer complaint form

Answer

An annual audit requirement

Question 4

What is the penalty for 'tipping off' a customer about a money laundering investigation?

Accepted Answer

Imprisonment for up to 2 years and/or a fine

Answer

A verbal warning

Answer

Administrative fine only

Answer

No penalty if done unintentionally

Question 5

What is Enhanced Due Diligence (EDD) and when must it be applied?

Accepted Answer

Additional verification measures applied to high-risk customers, PEPs, and complex transactions

Answer

Standard identity verification for all customers

Answer

A one-time check during account opening

Answer

Only required for foreign customers

Question 6

How long must financial institutions in Saudi Arabia retain customer records and transaction data?

Accepted Answer

10 years after the end of the business relationship

Answer

3 years

Answer

5 years

Answer

Indefinitely