FREE Banking Anti-Money Laundering (AML) Principles Questions and Answers

Question 1

A new corporate customer, a cash-intensive business, opens an account.
Over the first month, the teller notices the customer makes multiple cash deposits each week, all ranging between $9,000 and $9,500.
This pattern of transactions is a primary indicator of which stage of money laundering?

Accepted Answer

Placement

Answer

Integration

Answer

Layering

Answer

Obfuscation

Question 2

Which of the following are all considered core, required components (pillars) of a bank's BSA/AML compliance program?

Accepted Answer

A designated AML Compliance Officer, independent testing, ongoing employee training, and internal controls.

Answer

Quarterly reporting to the board, a customer rewards program, a public relations policy, and a fraud hotline.

Answer

A marketing review process, a new product approval committee, annual shareholder meetings, and a security officer.

Answer

Daily currency transaction reporting, mandatory law enforcement cooperation, a customer rating system, and a whistle-blower policy.

Question 3

A bank is onboarding a new client who is a senior government official from a foreign country. This client's status as a Politically Exposed Person (PEP) automatically requires the bank to perform which of the following?

Accepted Answer

Apply Enhanced Due Diligence (EDD), including verifying the source of wealth and funds.

Answer

File a mandatory Suspicious Activity Report (SAR) for all transactions.

Answer

Charge higher fees for all account services.

Answer

Restrict the account to only domestic transactions.

Question 4

A bank teller identifies a customer's transaction pattern that involves wiring numerous small, frequent amounts of money to various individuals in a high-risk jurisdiction. The transactions lack any clear economic or business purpose. After escalating the concern, the AML investigator decides to file a report with FinCEN. What is this report called?

Accepted Answer

Suspicious Activity Report (SAR)

Answer

Currency Transaction Report (CTR)

Answer

Beneficial Ownership Report (BOR)

Answer

Funds Transfer Report (FTR)

Question 5

A criminal organization successfully deposits illicit cash into the banking system through a series of structured deposits. To obscure the audit trail, the funds are then moved through a complex series of wire transfers to shell corporations in different countries, converted into different currencies, and used to purchase and sell high-value assets. This activity best describes which stage of money laundering?

Accepted Answer

Layering

Answer

Placement

Answer

Integration

Answer

Structuring

Question 6

Which of the following is a primary responsibility of a bank's designated AML Compliance Officer?

Accepted Answer

Overseeing the implementation and ongoing effectiveness of the AML program, including policies and procedures.

Answer

Approving all new commercial loan applications over $1 million.

Answer

Setting the bank's annual revenue and profitability targets.

Answer

Personally conducting all investigations into customer fraud claims.

A new corporate customer, a cash-intensive business, opens an account.Over the first month, the teller notices the customer makes multiple cash deposits each week, all ranging between $9,000 and $9,500.This pattern of transactions is a primary indicator of which stage of money laundering?

A new corporate customer, a cash-intensive business, opens an account.
Over the first month, the teller notices the customer makes multiple cash deposits each week, all ranging between $9,000 and $9,500.
This pattern of transactions is a primary indicator of which stage of money laundering?