Ask the expert: Industry knowledge

Who are the major card brands?

• VISA, Stripe, Mastercard, Square 

• VISA, Mastercard, American Express, Discover 

• Mastercard, JPMC, JCB, Adyen 

• American Express, VISA, Revolut, Wells Fargo 

What is true about an issuer? 

• Responsible for the cardholder 

• Must ensure the cardholder performs only legal transactions

• Must maintain the cardholder account in a compliant way 

• All of the above 

What is true about an Acquirer?

• Provides merchant accounts 

• Responsible for merchant compliance with relevant laws 

• Not associated with the credit card schemes 

• A and B 

Who does a cardholder directly pay when making a credit card transaction with a merchant? 

• The merchant 

• The merchant’s acquiring bank 

• The cardholder’s issuing bank 

• The card scheme 

Which of the following are “additional players” in the payments flow? 

• Gateways 

• Payment service providers (PSP) 

• Alternative payment methods 

• Mobile payments 

• All of the above 

What is the Risk based approach?

• A means to identify, assess and understand money laundering and terror financing risk. 

• A movie featuring Tom Cruise where he plays the role of a compliance analyst 

• A transaction monitoring protocol which assists banks in identifying risk 

• Something only applicable to banks 

What does FATF stand for? 

• Financial Action Task Force 

• Financial Action Terminology Framework 

• Financial Articles Task Force 

• Financial Anti-terror Task Force 

What kind of activity could lead to a financial institution having their license revoked? 

• The onboarding of a problematic merchant 

• The failure to properly file a Suspicious Activity Report (SAR) in a high-profile case 

• Constant, structural, and systematic deficiencies in risk management protocols 

• Failure to adapt to new threats 

What is the basic principle of the Risk Based Approach? 

• High-risk lines of business should be avoided 

• Resources should be allocated according to potential business value 

• All merchants should receive enhanced due diligence 

• Higher risk = enhanced measures to mitigate risk 

What are four main forms of risk to be measured? 

• Customer, product, channel, amount  

• Customer, product, channel, jurisdiction 

• Product, jurisdiction, channel, blacklist  

• Financial, Monetary, Jurisdiction, Inherent