AML/CFT Compliance Quiz 1

What is the recommended frequency for updating an institution's risk assessment?

• Monthly

• Quarterly

• Annually

• Every 5 years

What does FATF stand for?

• Financial Action Task Force

• Federal Anti-Terrorism Foundation

• Financial Analysis and Tracking Forum

• Foreign Account Tax Facility

Which of the following is NOT typically considered a red flag in transaction monitoring?

• Structuring

• Rapid movement of funds

• Regular salary payments

• Transactions with high-risk jurisdictions

Which of the following is a best practice for maintaining an effective transaction monitoring program?

• Set it and forget it

• Focus only on high-risk customers

• Regular testing and tuning of scenarios

• Rely solely on automated systems without human oversight

Which of the following is a key component of an effective transaction monitoring system?

• Manual review of all transactions

• Rule-based scenarios and thresholds

• Focus solely on high-value transactions

• Ignoring international transactions

What is the purpose of the "Know Your Customer" (KYC) process?

• To increase sales

• To verify customer identity and assess risk

• To speed up account opening

• To reduce compliance costs

What is the primary purpose of transaction monitoring in AML/CFT compliance?

• To increase profits

• To detect and report suspicious activities

• To speed up transactions

• To reduce operational costs

What does SAR stand for in the context of AML/CFT?

• Systematic Account Review

• Suspicious Activity Report

• Sanctioned Asset Registry

• Secure Account Regulation

Which regulatory body issued the USA PATRIOT Act?

• FATF

• FinCEN

• US Congress

• World Bank

Which of the following is NOT typically part of a transaction monitoring alert triage process?

• Reviewing customer profile

• Analyzing transaction history

• Checking against watch lists

• Automatically filing a SAR for all alerts