Finastra Assessment Test Finastra Assessment Financial Crime and Compliance 3

Question 1

A financial institution's AML program must include all of the following EXCEPT:

Accepted Answer

Guaranteed zero tolerance for false positives in transaction monitoring

Answer

The four pillars of a BSA/AML program are internal controls, independent testing, a designated compliance officer, and training — not a guarantee on false positive rates.

Question 2

What does the term 'de-risking' refer to in financial crime compliance?

Accepted Answer

Financial institutions exiting relationships with entire customer categories perceived as high-risk

Answer

De-risking occurs when financial institutions terminate or avoid entire categories of customers or correspondent relationships deemed too risky, raising financial inclusion concerns.

Question 3

Which financial crime typology involves criminals using legitimate businesses to commingle illicit funds with lawful revenues?

Accepted Answer

Commingling

Answer

Commingling involves mixing illegal proceeds with legitimate business revenue to obscure the origin of criminal funds.

Question 4

Under the Corporate Transparency Act (CTA), what information must beneficial owners report to FinCEN?

Accepted Answer

Full legal name, date of birth, address, and identification document number

Answer

The CTA requires reporting companies to submit beneficial owners' legal name, date of birth, current address, and a unique identifying document number to FinCEN's BOI database.

Question 5

In transaction monitoring, a 'typology' refers to:

Accepted Answer

A recognized pattern or method used to commit financial crime

Answer

A typology is a documented pattern, scheme, or method commonly used by criminals to launder money or commit financial crimes, used to inform monitoring rules.

Finastra Assessment Test Practice Test

Finastra Assessment Test Practice Test

Finastra Assessment Test Finastra Assessment Financial Crime and Compliance 3