Anti-Money Laundering Flashcards

What is proliferation financing?

Answer: Providing funds for the development of weapons of mass destruction

Proliferation financing involves providing funds or financial services for the development, production, or acquisition of nuclear, chemical, or biological weapons.

What is the role of MAS Notice 626 in AML compliance?

Answer: It prescribes AML/CFT requirements for banks in Singapore

MAS Notice 626 sets out detailed requirements for banks in Singapore regarding customer due diligence, ongoing monitoring, suspicious transaction reporting, and record keeping.

What is de-risking in the AML context?

Answer: Financial institutions terminating or restricting business relationships to avoid AML risk

De-risking occurs when financial institutions decide to terminate or restrict business relationships with entire categories of customers perceived as high-risk for money laundering.

What is a national risk assessment for money laundering?

Answer: A country-level evaluation of money laundering and terrorism financing threats and vulnerabilities

A national risk assessment identifies and evaluates money laundering and terrorism financing risks at the country level, informing policy and regulatory responses.

What is the significance of international cooperation in AML?

Answer: It enables countries to share information and coordinate efforts against cross-border financial crime

Money laundering is often cross-border, so international cooperation through information sharing, mutual legal assistance, and coordinated enforcement is essential.

What emerging technology challenges exist in AML compliance?

Answer: Cryptocurrencies, digital payments, and anonymity tools create new channels for money laundering

Emerging technologies like cryptocurrencies, digital wallets, and privacy-enhancing technologies create new channels and methods for money laundering that challenge traditional AML controls.