Swift Professional Standards & Competencies 3

Question 1

Under Swift's Know Your Customer (KYC) Registry, what is the primary purpose of the KYC Registry service?

Accepted Answer

To centralize and standardize correspondent banking due diligence documentation

Answer

Swift's KYC Registry allows financial institutions to upload and share standardized due diligence documentation, reducing duplicated effort in correspondent banking relationships.

Question 2

When a Swift message is flagged during sanction screening, what is the standard professional response?

Accepted Answer

Immediately escalate to compliance and halt the transaction pending review

Answer

Flagged transactions must be halted and escalated to compliance officers immediately, as processing sanctioned transactions carries severe legal and reputational consequences.

Question 3

Which field in an MT 103 message is mandatory and carries the sender's reference number?

Accepted Answer

Field 20

Answer

Field 20 (Transaction Reference Number) is mandatory in MT 103 and contains the sender's unique reference for the transaction.

Question 4

A Swift professional is asked by management to approve a transaction that bypasses normal AML screening 'just this once.' What is the correct response?

Accepted Answer

Refuse and document the request, escalating to compliance

Answer

Professional standards require refusal and documentation when asked to circumvent compliance controls, regardless of who makes the request.

Question 5

What is the role of a Relationship Management Application (RMA) in the Swift network?

Accepted Answer

It controls which counterparties a Swift user can exchange messages with

Answer

RMA (Relationship Management Application) is a bilateral authorization mechanism that controls message exchange permissions between Swift users.

Swift Practice Test

Swift Practice Test

Swift Professional Standards & Competencies 3