CMFAS Anti-Money Laundering 3

Question 1

What is the Terrorism (Suppression of Financing) Act (TSOFA) in Singapore?

Accepted Answer

Legislation criminalising the financing of terrorism and related activities

Answer

An act to fund counter-terrorism

Answer

An act to regulate financial advisers

Answer

An act to control immigration

Question 2

What is a risk-based approach to AML?

Accepted Answer

Allocating resources and applying measures proportionate to the assessed risk level

Answer

Ignoring low-risk customers

Answer

Treating all customers the same

Answer

Only monitoring high-value transactions

Question 3

What is 'structuring' or 'smurfing' in money laundering?

Accepted Answer

Breaking large transactions into smaller ones to avoid detection thresholds

Answer

Building financial structures

Answer

Investing in structured products

Answer

Organizing financial records

Question 4

What records must financial institutions maintain for AML purposes?

Accepted Answer

Customer identification documents, transaction records, and account files

Answer

Only customer names

Answer

Only transaction amounts over $10,000

Answer

Only records for foreign customers

Question 5

What is the Financial Action Task Force (FATF)?

Accepted Answer

An international body that sets global AML/CFT standards

Answer

A Singapore government agency

Answer

A private banking association

Answer

A law enforcement agency

Question 6

What are FATF Recommendations?

Accepted Answer

International standards for countries to implement effective AML/CFT frameworks

Answer

Suggestions for investment

Answer

Banking product recommendations

Answer

Career advice for financial professionals