AML/CFT Training Quiz

What are the responsibilities of the Board of Directors?

• All of the above

• Providing leadership to ensure licensee operates in a prudent manner

• Ensuring internal controls and systems are in place

• Only oversight of the management

What is the best way to prevent money laundering?

• Know Your Customer (KYC)

• Know Your Employee (KYE)

• Record keeping

• Enhanced Due Diligence

What are the five key questions to ask about all clients in the KYC process?

• Who, When, Where, Why, How

• Who, What, Why, How, Which

• Who, What, Where, Why, How

• Who, What, When, Where, Why

Which of the following is NOT a high-risk customer according to the text?

• Regular individual customers

• Exporters or importers of goods and services

• Politically Exposed Persons (PEPs)

• Non-bank financial institutions

Why are Politically Exposed Persons (PEPs) considered high-risk clients?

• Due to their potential vulnerabilities and access to financial channels

• Due to their charitable activities

• Due to their lack of influence

• Due to their low financial status

How long are regulated institutions required to retain client's KYC and loan information?

• 10 years

• 7 years

• 5 years

• 3 years

In what form can records be kept?

• Only in electronic form

• In written or electronic form

• In microfiche form

• Only in written form

When MUIST client information be updated? (Select all that apply)

• Where there are doubts about customer information

• Every 5 years

• When client indicates a change in KYC information

• 7 years after the last update

• A longtime customer returns for a loan

What is the purpose of conducting Enhanced Due Diligence (EDD) for high-risk customers?

• To reduce the level of scrutiny on high-risk customers

• To ensure the true nature of the customer and their background is understood

• To speed up the onboarding process

• To avoid providing services to high-risk customers

Which of the following is a way to verify customer information?

• Conducting site visits to the address provided

• Accepting self-declarations without verification

• Checking social media profiles

• Asking for personal references