FTT AML/CFT Compliance

Question 1

What are the three stages of money laundering?

Accepted Answer

Placement, layering, and integration

Answer

Detection, reporting, and prosecution

Answer

Identification, verification, and monitoring

Answer

Structuring, smurfing, and commingling

Question 2

What is 'structuring' (also known as 'smurfing') in the context of money laundering?

Accepted Answer

Breaking up large cash transactions into smaller amounts to avoid triggering mandatory reporting thresholds

Answer

Creating complex corporate structures to hide asset ownership

Answer

Using multiple bank accounts across different countries simultaneously

Answer

Converting cash into foreign currencies in small amounts

Question 3

What is a Politically Exposed Person (PEP) under MAS guidelines?

Accepted Answer

An individual who is or has been entrusted with a prominent public function, and their immediate family members and close associates

Answer

Any government employee regardless of their level

Answer

Only foreign heads of state and their families

Answer

Any person who has donated to a political party

Question 4

Under Singapore's AML/CFT framework, what does Customer Due Diligence (CDD) involve?

Accepted Answer

Identifying and verifying customer identity, understanding the nature of the business relationship, and assessing money laundering and terrorism financing risks

Answer

Only checking whether a customer is on a sanctions list

Answer

Only verifying the source of funds for transactions above S$20,000

Answer

Conducting CDD once at account opening and not thereafter

Question 5

When must Enhanced Due Diligence (EDD) be applied?

Accepted Answer

When dealing with Politically Exposed Persons, high-risk customers, or customers from high-risk jurisdictions

Answer

Only when a transaction exceeds S$20,000

Answer

For all new retail customers regardless of risk profile

Answer

Only when requested by law enforcement

Question 6

Suspicious Transaction Reports (STRs) in Singapore must be filed with:

Accepted Answer

The Suspicious Transaction Reporting Office (STRO) under the Singapore Police Force

Answer

The Monetary Authority of Singapore directly

Answer

The Inland Revenue Authority of Singapore

Answer

The Singapore Exchange