CMFAS Anti-Money Laundering 5

Question 1

What is ongoing monitoring in AML?

Accepted Answer

Continuously reviewing customer transactions and relationships for suspicious activity

Answer

Checking email daily

Answer

Monthly performance reviews

Answer

Monitoring stock prices

Question 2

What is the purpose of sanctions screening?

Accepted Answer

To check customers and transactions against lists of sanctioned individuals, entities, and countries

Answer

To approve visa applications

Answer

To screen job applicants

Answer

To test product quality

Question 3

What are the consequences of non-compliance with AML regulations?

Accepted Answer

Criminal penalties, regulatory sanctions, reputational damage, and loss of licence

Answer

A small fine only

Answer

No consequences

Answer

A warning letter only

Question 4

What is correspondent banking in the context of AML?

Accepted Answer

A banking relationship where one bank provides services on behalf of another bank

Answer

Banking by mail

Answer

A bank that only serves journalists

Answer

Online banking

Question 5

What is the purpose of training staff on AML procedures?

Accepted Answer

To ensure staff can identify and report suspicious activities effectively

Answer

To increase sales

Answer

To reduce staffing costs

Answer

To comply with employment law only

Question 6

What is 'know your customer's customer' (KYCC)?

Accepted Answer

Understanding not just the direct customer but also who they are transacting with

Answer

Getting to know customers socially

Answer

A social media policy

Answer

A customer loyalty programme