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

Ongoing monitoring involves continuously reviewing customer transactions and account activity to detect unusual or suspicious patterns that may indicate money laundering.

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

Sanctions screening checks whether customers, beneficial owners, or transactions involve sanctioned persons, entities, or countries designated by international bodies or Singapore authorities.

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

Non-compliance can result in criminal prosecution, heavy fines, regulatory sanctions (including licence revocation), and severe reputational damage.

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

Correspondent banking involves one bank (correspondent) providing banking services on behalf of another bank (respondent), which can be exploited for money laundering.

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

AML training ensures that all staff understand their obligations, can recognize red flags, and know how to properly report suspicious activities.

CMFAS Practice Test

CMFAS Practice Test

CMFAS Anti-Money Laundering 5