Swift Risk Assessment & Management 5

Question 1

Which SWIFT security incident led to major reforms in the Customer Security Programme and mandatory control attestation requirements?

Accepted Answer

The Bangladesh Bank heist of 2016

Answer

The 2016 Bangladesh Bank heist, where $81 million was stolen via fraudulent SWIFT messages, directly prompted SWIFT to launch the CSP with mandatory security controls.

Question 2

In risk management, what does 'de-risking' in correspondent banking primarily refer to?

Accepted Answer

Banks exiting high-risk correspondent relationships instead of managing the risk

Answer

De-risking refers to the practice of banks terminating or restricting correspondent relationships with higher-risk customers or jurisdictions rather than applying risk-based mitigation.

Question 3

Under the SWIFT CSP framework, how frequently must member institutions submit their security attestation?

Accepted Answer

Annually

Answer

The CSP requires all SWIFT users to self-attest their compliance with mandatory controls on an annual basis through the KYC Security Attestation (KYC-SA) application.

Question 4

A bank processes a payment for a customer that later turns out to be a sanctioned entity not yet on its screening list. Which type of risk has materialized?

Accepted Answer

Regulatory/compliance risk

Answer

Processing a payment for a sanctioned entity exposes the bank to regulatory penalties, fines, and reputational damage—core manifestations of compliance risk.

Question 5

What is the role of a 'cover payment' (MT 202 COV) in cross-border transactions, and what risk does it create?

Accepted Answer

It moves funds between correspondent banks to cover an MT 103; risk is reduced AML transparency in the interbank leg

Answer

The MT 202 COV is the interbank funding message accompanying an MT 103, but historically the cover leg lacked originator details, creating AML transparency gaps now addressed by FATF standards.

Swift Practice Test

Swift Practice Test

Swift Risk Assessment & Management 5