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

TSOFA criminalises the provision or collection of property for the purpose of terrorism, providing legal tools to combat terrorism financing in Singapore.

Question 2

What is a risk-based approach to AML?

Accepted Answer

Allocating resources and applying measures proportionate to the assessed risk level

Answer

A risk-based approach means applying AML measures proportionate to the level of risk identified — higher risk warrants more intensive measures.

Question 3

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

Accepted Answer

Breaking large transactions into smaller ones to avoid detection thresholds

Answer

Structuring (smurfing) involves deliberately breaking a large cash transaction into multiple smaller transactions to avoid triggering reporting thresholds.

Question 4

What records must financial institutions maintain for AML purposes?

Accepted Answer

Customer identification documents, transaction records, and account files

Answer

Financial institutions must maintain comprehensive records including customer identification documents, transaction details, account files, and correspondence for a minimum of 5 years.

Question 5

What is the Financial Action Task Force (FATF)?

Accepted Answer

An international body that sets global AML/CFT standards

Answer

FATF is the global standard-setting body for anti-money laundering and counter-terrorism financing. It issues recommendations that countries are expected to implement.

CMFAS Practice Test

CMFAS Practice Test

CMFAS Anti-Money Laundering 3