RCMS Anti-Money Laundering & KYC 3

Question 1

What is a Politically Exposed Person (PEP) in the context of KYC/AML?

Accepted Answer

An individual who holds or has held a prominent public function, posing higher corruption risk

Answer

PEPs are individuals entrusted with prominent public functions who may pose higher risks for bribery and corruption.

Question 2

What is the timeframe within which a financial institution must file a SAR after initially detecting a suspicious transaction?

Accepted Answer

30 calendar days, extendable to 60 if no suspect is identified

Answer

SARs must be filed within 30 calendar days of detection, with a 60-day extension allowed when no suspect has been identified.

Question 3

Which of the following is an example of trade-based money laundering (TBML)?

Accepted Answer

Over-invoicing goods to transfer value across borders under the guise of legitimate trade

Answer

TBML exploits international trade transactions, such as over- or under-invoicing, to move value across borders illicitly.

Question 4

Under the Customer Due Diligence (CDD) rule finalized by FinCEN in 2016, what beneficial ownership threshold must be identified for legal entity customers?

Accepted Answer

25% or greater ownership

Answer

The FinCEN CDD rule requires identifying natural persons owning 25% or more of a legal entity customer.

Question 5

What distinguishes Enhanced Due Diligence (EDD) from standard CDD?

Accepted Answer

EDD involves deeper scrutiny of higher-risk customers, including PEPs and high-risk jurisdictions

Answer

EDD requires additional information and ongoing monitoring for customers or relationships presenting higher AML risks.

(RCMS) Registered Compliance Management Specialist Certification Practice Test

(RCMS) Registered Compliance Management Specialist Certification Practice Test

RCMS Anti-Money Laundering & KYC 3