AML Regulations Quiz

What is the primary purpose of AML regulations?

• To prevent the selling of fake gold

• To prevent the financing of criminal activities through the financial system

• To ensure customers are satisfied with their purchases

• To regulate the prices of precious metals

What is "money laundering"?

• The process of converting legal money into gold

• The process of hiding the origins of illegally obtained money

• The act of depositing cash in small amounts to avoid taxes

• The legitimate trading of precious metals across borders

Which of the following transactions would raise a red flag for potential money laundering?

• A regular customer purchasing a small gold necklace

• A new customer purchasing a high-value gold item with cash

• A customer buying a gold bracelet using a credit card

• A frequent customer making a purchase under $100

According to AML/CFT regulations, what is the threshold for reporting suspicious transactions?

• £1,000

• £5,000

• £10,000

• £15,000

What is "structuring" in the context of money laundering?

• Legally structuring a business to sell gold and jewellery

• Dividing large transactions into smaller ones to avoid reporting requirements

• Organizing payments through proper invoicing

• Structuring a purchase through a financing option

When must you perform Customer Due Diligence (CDD) on a client?

• Only when the customer pays in cash

• Only for transactions exceeding £10,000

• For every transaction, regardless of value

• When there is suspicion of money laundering, regardless of the transaction amount

Which of the following documents is NOT typically acceptable for verifying a customer's identity?

• Passport

• National ID card

• Utility bill

• Credit card

What should you do if you suspect a customer is involved in money laundering?

• Ignore the suspicion if it’s a small transaction

• Notify your manager or the designated AML compliance officer

• Confront the customer and refuse service

• Call the police immediately

What is "terrorist financing"?

• The use of funds for lawful political organizations

• Providing financial support to individuals or groups involved in terrorism

• Buying gold as an investment strategy

• A legal form of money transfer across borders

Under AML/CFT laws, how long should you retain customer transaction records?

• 1 year

• 2 years

• 5 years

• 10 years