Preview Questions AML Specialist | Role Specific Skill

Question 1: Key risk indicators (KRIs) should be aligned with which aspect of the AML risk management process?

Which action should you take?

Choose only one option

The institution's overall risk tolerance and risk appetite

Financial auditing protocols

Customer complaint resolution procedures

Transaction monitoring systems

Question 2: Under which condition should a financial institution NOT file a Suspicious Activity Report (SAR)?

Which action should you take?

Choose only one option

When the institution is unsure of the activity's nature

When the activity is part of regular business transactions

When the customer explicitly denies involvement in any suspicious activity

When the activity is suspicious but falls below the reporting threshold

Question 3: Which of the following best describes the purpose of enhanced due diligence (EDD) in the context of AML investigations?

Which action should you take?

Choose only one option

To automate transaction monitoring for all customers

To thoroughly investigate higher-risk customers and transactions

To review customers only after they initiate a suspicious transaction

To categorize customers based on risk profile without further investigation

Question 4: How does the FATF (Financial Action Task Force) define a politically exposed person (PEP)?

Which action should you take?

Choose only one option

A person involved in non-profit activities

A person with a significant history of financial instability

A person with a high-profile public position who may be at greater risk of corruption

A person with a criminal history

Question 5: What is the key advantage of using blockchain technology in fraud prevention for financial institutions?

Which action should you take?

Choose only one option

Its transparency and immutability make transactions easier to trace and verify

It enables faster transaction processing without human oversight

It eliminates the need for KYC and customer verification processes

It prevents unauthorized access to financial systems

Question 6: Under the Bank Secrecy Act (BSA), which type of transaction must always be reported, regardless of suspicion?

Which action should you take?

Choose only one option

Transactions involving digital assets

Currency transactions over $10,000

Transactions involving foreign government entities

Wire transfers under $1,000