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To provide aid in investigating a cross-border money laundering case, a Financial Intelligence Unit (PIU) that is a member of the Egmont Group can:
Which of the following scenarios warrants enhanced due diligence (EDD)? (Select Three.)
Country A's anti-corruption authority has been investigating the movement of potential proceeds of bribery and corruption to Country B and is now preparing to take the case to a local court.
Which method of obtaining the required evidence to prosecute the case would be most effective?
Cryptocurrency-related technologies that can be exploited by money launderers include: (Select Two.)
Under the Egmont Group Principles, information exchange among financial intelligence units (FIUs) should be conducted:
The US Department of the Treasury notes that which of the following represent high money laundering risk when de-risked from traditional financial institutions (FIs)? (Choose two.)
Which of the following programs would most likely be considered part of an effective supervision regime for a regulator?
An employee in a corporation's finance department hears news of an internal investigation into potential fraud within the company, quits her job, and disappears.
If they had been observed before her resignation, which characteristics of the employee would have been considered red flags? (Select Two.)
The UN Security Council's primary role in imposing sanctions is that it has the authority to:
Which services provided by an accounting firm could be considered as higher risk from a financial crime perspective? (Choose three.)
When deciding on the fuzzy matching threshold for sanctions screening, consideration should be given to:
Which operational situation might indicate that money laundering is occurring at or through a deposit-taking financial institution?
The supply of goods and services can be vulnerable to corruption within a company, particularly the solicitation and receipt of bribes and kickbacks, because: (Choose two.)
Which money laundering risks are posed by the misuse of trust and asset management services? (Select Three.)
The owner of a real estate investment company deposits multiple cashier's checks that were bought using cash over a three-month period, from the sale of two apartments. This account also receives several electronic transfers from other financial institutions for US$10,000 each.
What activity is considered suspicious of money laundering?
When applying new technologies to AML, application programming interfaces (APIs) allow for:
Based on the AML principles outlined by the Wolfsberg Group, what do private and correspondent banks have in common when monitoring for terrorist financing?
Which of the following statements is true regarding the 2012 Financial Action Task Force (FATF) 40 Recommendations and'or 11 Immediate Outcomes?
A multinational corporation is considering expanding into a new market with a history of political instability and corruption.
Which strategy would be most effective in mitigating reputational risk from a financial crime perspective associated with such an expansion?
Which of the following are common indicators of possible money laundering within the securities industry? (Select Two.)
A law enforcement agency submits several requests to a financial institution.
Which request is legitimate and requires the bank to respond?
A large international bank's chief compliance officer (CCO) is exploring ways to enhance the bank's ability to identify suspicious activities by using intelligence data more effectively. One potential solution is to engage in public-private partnerships (PPPs) to leverage shared intelligence and enhance collaboration with government agencies.
The bank considers joining a PPP initiative with the local Financial Intelligence Unit (FIU) and other financial institutions to improve its access to relevant data and intelligence. The CCO understands that while PPPs can provide significant benefits, such as improved risk detection and enhanced information sharing, there are also potential limitations, including data privacy concerns and differing priorities between public and private sector partners.
Which approach would best maximize the benefits of PPPs for the bank while mitigating the limitations associated with data sharing and intelligence?
Which statement best describes a key money laundering risk associated with virtual asset service providers (VASPs), cryptoassets, and related products?
According to the Financial Action Task Force's (FATF's) "Guidance for a Risk-Based Approach Life Insurance Sector," which of the following are money laundering red flags relating to the involvement of a third party in a life insurance product? (Select Two.)
Which of the following measures can help maintain the independence of BSA/AML compliance staff to ensure effective compliance controls?
Which of the following are considered best practices regarding senior management involvement in a financial crime compliance program? (Choose two.)
Which changes at a financial institution (FI) should trigger an enterprise-wide reassessment of its inherent AML risk exposure? (Select Three.)
An EU Trust and Company Service Provider analyst notices some unusual activity while looking through a customer's financial statements and detailed general ledger. The customer is in the business of importing and exporting machineries.
Which transaction indicator warrants further escalation to the compliance officer?
A financial institution's US Branch receives a subpoena from law enforcement requesting detailed records of a customer's account activity. The customer is part of an ongoing investigation into a money laundering operation. At the same time, the institution has received a FinCEN 314(b) information-sharing request from another bank seeking details on transactions linked to the same customer. The compliance team is tasked with responding to both the subpoena and the FinCEN 314(b) request.
What should the compliance officer prioritize in responding to these requests while ensuring that all legal and regulatory obligations are met?
Which of the following actions is specifically permitted or required under FinCEN section 314(b) for financial institutions (FIs) to enhance their efforts in combating money laundering and terrorist financing?
Which should be provided to the board of directors or designated specialized committee when preparing suspicious activity reports (SARs)?
Which techniques would be most efficient for a complex investigation of unusual patterns of activity involving multiple businesses, triggered by an automated monitoring system alert? (Select Two.)
A compliance analyst has recently investigated an account where money was deposited in amounts below the reporting limit and almost entirely withdrawn in a foreign country.
Which type of money laundering is the compliance analyst potentially identifying?
Which of the following ate efficient approaches lo performing horizon scanning? (Select Two.)
Which of the following are key components of the Know Your Customer (KYC) process? (Select Two.)
When services are provided by a trust and company service provider (TCSP) connected to a high-risk country, which of the following may present an immediate financial crime risk concern?
A compliance officer at a large bank has been tasked with investigating a series of unusual transactions involving a long-time customer. The customer has made several large cash deposits into multiple accounts within a short period, raising red flags. After gathering and analyzing transaction data, reviewing customer records, and cross-referencing external sources, the compliance officer determines that there is a reasonable suspicion of money laundering. As part of documenting this investigation, the compliance officer must decide how and when to escalate the matter internally and whether to file a suspicious activity report (SAR).
What is the next critical step in this process?
Which of the following is a benefit of an institution implementing machine learning to identify suspicious transactions?
When making an independent determination on whether to close an account based on an internal Investigation, a financial institution (F1) should consider. (Select Five.)
A bank has been fined for failing to take reasonable care to establish and maintain effective systems and controls for high-risk customers, including politically exposed persons (PEPs).
Which typical financial crime risks should the bank have addressed? (Choose three.)
A trust and company services provider that offers a variety of services to businesses is approached by a client interested in establishing a new company. The client requests assistance with the incorporation process, a local business address, annual maintenance services, and the designation of individuals to serve in official capacities for the new company.
Which of the following services involves a higher money laundering risk?
What are the primary sources of reference besides AML laws and regulations when developing and maintaining the AML policies, standards, and procedures of a bank? (Choose three.)
A compliance officer at a financial institution has completed an investigation into a high-risk customer's activities and determined that there are strong indications of money laundering. The compliance officer has documented their findings and is ready to recommend offboarding the customer. However, the relationship manager responsible for the customer is resistant to the idea, citing the customer’s significant revenue contribution to the institution.
What should the compliance officer do next to ensure the appropriate escalation and decision-making process is followed?
When the Financial Action Task Force (FATF) places a jurisdiction on the list of "jurisdictions under increased monitoring," also known as the "grey list," the jurisdiction:
A recruitment manager in the human resources department of a bank has shortlisted a candidate for the position of relationship manager in its private banking division. The compliance policy of the bank stipulates that proper background checks on new employees
must be completed by the recruiting team to protect the bank against potential risks, including fraud and money laundering.
Which resources would be most useful for identifying any potential negative information regarding the shortlisted candidate? (Select Three.)
A bank has joined a public-private partnership (PPP) to work with law enforcement and regulators on combating financial crime. However, the bank's data protection officer is concerned about sharing sensitive customer data, and the compliance officer is worried about potential delays in receiving useful information from the government.
Which of the following best describes a benefit of PPPs in fighting financial crime?
Which of the services provided by Trust and Company Service Providers (TCSPs) present the greatest financial crime risks? (Choose three.)
Which collective body of Financial Intelligence Units (FlUs) was formed with an objective to improve Information exchange and sharing mechanisms among member FlUs as well as to support its members by enhancing their capabilities'?
Which activities are part of adverse media screening for negative news and reputational risks? (Select Three.)
A risk-based approach (RBA) to anti-financial crimes (AFC) involves understanding and managing risks by:
Which risk factors should a financial institution (FI) examine for a new corporate customer intending to open a new bank account? (Select Three.)
A key advantage of privacy enhancing technologies (PETs) in anti-money laundering is that they offer:
Professions such as lawyers, accountants, and trust and company service providers (TCSPs) are sometimes referred to as "gatekeepers" because they:
Common risks associated with cryptocurrency and convertible virtual currencies include: (Choose three.)
The Basel Committee on Banking Supervision published guidelines on the "Sound management of risks related to money laundering and financing of terrorism."
With regard to identifying and accepting customers, it recommends that banks: (Select Two.)
A National Risk Assessment (NRA) can impact a financial institution's (Fl's) risk-based approach to anti-money laundering and terrorism financing by:
During a routine periodic KYC refresh of a policyholder and client of an insurance company, updated business registry documentation has highlighted that the policyholder's business has changed addresses five times during the last year and that the ultimate beneficial owner (UBO) changed two weeks ago.
What actions should be taken immediately?
How should risk-related issues be addressed to ensure the effectiveness of the three lines of defense model?
Which of the below would be relevant money laundering red flags for life insurance companies? (Select Two.)
An internal audit team is reviewing the anti-financial crime (AFC) program of its firm.
Which of the following attributes of the third line of defense would be most critical to ensure unbiased and effective oversight?
Which principle about safeguarding privacy and data should an auditor adhere to when performing an AML investigation?
A law enforcement action alleged that on several trading days over the course of two months, defendants engaged in a series of copper gold, crude oil. and natural gas futures transactions on an electronic trading platform One defendant repeatedly bought future contracts at low prices from the other, and then immediately sold them back at higher prices. As a result, one defendant effectively pocketed the same amount as the other lost even though there were no changes in the open positions held by either defendant.
What is a name for this typology?
Money laundering has social and economic impacts, especially within developing countries. A high volume of money laundering in a country may: (Select Two.)
Which of the following can be considered a reliable, independent source document, data, or information?
Which activities would be considered money laundering red flags when reviewing the business operations of a money services business (MSB)? (Select Two.)
Which of the following risk factors are considered by many supervisory authorities as representing a higher inherent risk associated with MSBs? (Select Two.)
Common risks and red flags associated with trade finance clients may include: (Choose four.)
The United Nations Security Council (UNSC) is empowered to impose sanctions regimes against countries and terrorist organizations.
Which statements are true regarding sanctions imposed by the UNSC? (Select Two.)
Which customer actions are red flags for virtual currency peer-to-peer transactions? (Choose two.)
A large financial institution (FI) is considering expanding business to an area of the world with weak AML laws. The risk-based assessment indicates that the location will increase the FI's risk appetite beyond the stated acceptable amount.
Which risk factors should be used to identify the priority of the FI?
According to the Egmont Group, which benefits do public-private partnerships (PPPs) provide to Financial Intelligence Units (FIUs)? (Select Three.)
A compliance officer is reviewing an institutional banking prospect proposal for a new foreign entity that is a multinational business but headquartered in a country where most businesses are state-owned.
Which risks should be prioritized in the review? (Choose two.)
In a large US bank, an individual leads a team in charge of overseeing the governance and effectiveness of the bank's transaction monitoring approach.
Which strategies should the team implement? (Select Two.)
Which section of the USA PATRIOT Act relates to forfeiture of funds and allows for extraterritorial reach?
Using artificial intelligence (Al) and machine learning-based techniques tn adverse media screening can: (Choose three.)
Which statements regarding using network analysis tools to determine links to criminality are true? (Choose three.)
Which of the following best describes the degree of cooperation between regulatory authorities, law enforcement agencies, and Financial Intelligence Units (FIUs) during money laundering investigations, including cross-border cases?
A bank organized under foreign law and located outside of the US maintains a correspondent banking relationship with a US-based bank to handle financial transactions in US dollars for its clients. In compliance with the USA PATRIOT Act of 2001, all US banks and broker-dealers in securities must obtain a signed certification from all non-US foreign bank clients conducting business with them.
What information does the USA PATRIOT Act of 2001 require the foreign bank to certify to the US bank? (Select Three.)
Financial crime risk related to the use of "hawalas" can stem from: (Choose two.)
One key aspect of promoting an enterprise-wide compliance culture within a financial institution is that the:
As emphasized in the Basel Committee guidance for "Sound management of risks related to money laundering and financing of terrorism", the third line of defense, or audit function, should:
The UN Security Council's primary role in imposing sanctions is that it has the authority to:
TESTED 20 Nov 2025