Jewelry Business AML Quiz

What is the primary reason jewelry businesses are vulnerable to money laundering?

• High customer turnover

• High-value transactions and use of cash

• Low staff turnover

• Low-value transactions

Which of the following is a red flag indicating potential money laundering?

• A customer requests a receipt.

• A customer refuses to provide identification.

• A customer returns an item within the refund period.

• A customer asks about new stock.

Under AML/CFT regulations, how long must a jewelry business retain records of transactions and customer information?

• 1 year

• 3 years

• 5 years

• 10 years

What is the purpose of a risk-based approach in AML/CFT programs?

• To save time by avoiding low-risk clients

• To prioritize resources based on the level of money laundering risk

• To identify potential buyers

• To attract high-value customers

Which of the following is considered a suspicious transaction in the jewelry business?

• A customer making a small cash purchase.

• A customer using multiple payment methods for a single transaction.

• A customer asking for a specific discount.

• A customer purchasing an item on sale.

Who is required to report suspicious transactions in a jewelry business?

• Only the manager

• Only the cashier

• Every employee

• Only the compliance officer

When must an employee report a suspicious transaction?

• Only if the customer seems guilty

• As soon as they become aware of the suspicious nature of the transaction

• At the end of the workday

• Only if the transaction exceeds a certain amount

Which document must be provided by high-value customers as part of customer due diligence (CDD)?

• Proof of employment

• Proof of address and valid ID

• Reference from a previous jeweler

• Proof of bank balance

What does “KYC” stand for?

• Know Your Currency

• Keep Your Cash

• Know Your Customer

• Keep Your Customer

If a customer insists on purchasing an expensive item in cash without providing any personal details, what should the employee do?

• Complete the sale without further questions

• Politely explain the business’s AML requirements and request information

• Ignore the customer

• Give a discount to avoid the hassle