Finastra Assessment Test Finastra Assessment Financial Crime and Compliance 2

Question 1

A bank customer frequently structures cash deposits just below $10,000 to avoid CTR filing. This practice is legally known as:

Accepted Answer

Structuring

Answer

Structuring (also called smurfing) is the illegal practice of breaking transactions into smaller amounts to evade Currency Transaction Report requirements.

Question 2

Under FATF Recommendation 10, what is the enhanced due diligence requirement for high-risk customers?

Accepted Answer

More intensive KYC measures and senior management approval

Answer

FATF Recommendation 10 requires enhanced due diligence for high-risk customers, including more robust identification, understanding of business relationships, and senior management approval.

Question 3

Which of the following best describes the 'integration' stage of money laundering?

Accepted Answer

Reintroducing laundered money into the legitimate economy

Answer

Integration is the final stage where laundered funds are reintroduced into the legitimate economy, making them appear as lawful income.

Question 4

A compliance officer receives a subpoena for customer records as part of a government investigation. The officer should:

Accepted Answer

Consult legal counsel before responding and follow applicable law

Answer

Compliance officers must consult legal counsel and follow applicable law when responding to subpoenas, balancing legal obligations with privacy requirements.

Question 5

In the context of sanctions compliance, what is an OFAC SDN list?

Accepted Answer

A registry of Specially Designated Nationals and Blocked Persons

Answer

The OFAC SDN (Specially Designated Nationals) list identifies individuals and entities with whom US persons are generally prohibited from transacting.

Finastra Assessment Test Practice Test

Finastra Assessment Test Practice Test

Finastra Assessment Test Finastra Assessment Financial Crime and Compliance 2