Preview Questions AML Specialist | Role Specific Skill

Question 1: What is the purpose of fraud risk scoring in financial transactions?

Which action should you take?

Choose only one option

To assign a risk level to each transaction based on predefined fraud indicators

To monitor transaction volume on a daily basis

To calculate profit margins on financial products

To assess employee performance in detecting fraudulent transactions

Question 2: Which AML procedure is most appropriate for PEPs?

Which action should you take?

Choose only one option

Enhanced due diligence (EDD)

Customer risk assessment (CRA)

No additional measures required

Simplified due diligence (SDD)

Question 3: Under FATCA, which entity is primarily responsible for reporting foreign assets to the IRS?

Which action should you take?

Choose only one option

Foreign corporations

U.S. banks

Foreign financial institutions

U.S. citizens

Question 4: What type of fraud does the FATF Recommendation 16 specifically address in the BFSI sector?

Which action should you take?

Choose only one option

Fraud involving the financing of terrorism

Identity theft

Money laundering in cross-border transactions

Insider trading

Question 5: Which of the following is a major challenge in AML compliance for financial institutions operating globally?

Which action should you take?

Choose only one option

Limited customer awareness of KYC requirements

Variations in regulatory standards and requirements across jurisdictions

Uniformity in financial regulations across all countries

The lack of technological solutions for transaction monitoring

Question 6: Which international AML standard mandates that financial institutions have an independent audit function to evaluate the effectiveness of their AML program?

Which action should you take?

Choose only one option

FATF Recommendation 30

FATF Recommendation 18

FATF Recommendation 11

FATF Recommendation 25