Finastra Assessment Test Finastra Assessment Financial Crime and Compliance 4

Question 1

Which international body sets the global standards for anti-money laundering and counter-terrorist financing (AML/CTF)?

Accepted Answer

The Financial Action Task Force (FATF)

Answer

FATF is the intergovernmental body that sets international standards and promotes effective implementation of legal, regulatory, and operational measures to combat money laundering and terrorist financing.

Question 2

Under US law, what is the primary purpose of a Currency Transaction Report (CTR)?

Accepted Answer

To document cash transactions exceeding $10,000 to help detect money laundering

Answer

A CTR is required under the Bank Secrecy Act for cash transactions exceeding $10,000 in a single business day, creating a paper trail to detect money laundering.

Question 3

What is the key distinction between a Suspicious Activity Report (SAR) and a Currency Transaction Report (CTR)?

Accepted Answer

SARs are filed based on suspicion of illegal activity; CTRs are filed based on transaction amount thresholds

Answer

SARs are filed when a transaction is suspected to involve criminal activity, regardless of amount, while CTRs are mandatory for any cash transaction exceeding $10,000.

Question 4

Which of the following is an example of a 'gatekeeping' profession that can be exploited for money laundering?

Accepted Answer

Lawyers and accountants who facilitate real estate or corporate transactions

Answer

Lawyers, accountants, and other professional service providers are considered 'gatekeepers' because they control access to financial systems and can be misused to facilitate money laundering.

Question 5

In AML risk assessment, which factor would most likely elevate a customer's risk rating?

Accepted Answer

Being a politically exposed person (PEP) from a high-risk jurisdiction

Answer

Politically exposed persons from high-risk jurisdictions combine two major risk factors — PEP status and geographic risk — significantly elevating their AML risk rating.

Finastra Assessment Test Practice Test

Finastra Assessment Test Practice Test

Finastra Assessment Test Finastra Assessment Financial Crime and Compliance 4