CAMS Session 3 Quiz

What is the primary role of the Financial Action Task Force (FATF)?

• Imposing penalties for non-compliance

• Setting global AML/CFT standards

• Conducting on-site inspections of financial institutions

• Issuing binding regulations

The FATF was established in 1989 by:

• The G7 countries

• The United Nations

• The European Union

• The Basel Committee

Which of the following is NOT a focus area of the FATF Recommendations?

• Countering financing of terrorism

• Mitigating financial crimes involving cryptocurrency

• Enhancing transparency of legal persons

• Regulating international financial transactions

The FATF’s Mutual Evaluation Process primarily assesses:

• Effectiveness of AML/CFT frameworks in member jurisdictions

• Global economic impact of money laundering

• Annual financial performance of FATF member states

• Compliance of individuals with AML laws

What is a key difference between FATF’s NCCT initiative and its current approach?

• NCCT involved 'naming and shaming,' while the current approach focuses on compliance progress.

• NCCT focused solely on tax evasion, while the current approach covers all predicate offenses.

• NCCT worked on voluntary member cooperation, while the current approach enforces sanctions.

• NCCT emphasized regional issues, while the current approach is globally uniform.

Which of the following revisions was introduced in the 2012 update of the FATF Recommendations?

• Criminalizing tax crimes as predicate offenses

• Including life insurance intermediaries under CDD obligations

• Mandating anonymous account reporting

• Requiring quarterly mutual evaluations

Which entity is NOT classified as a Designated Non-Financial Business and Profession (DNFBP) under FATF standards?

• Real estate agents

• Dealers in precious metals

• Securities brokers

• Lawyers and notaries

Under FATF Recommendations, financial institutions are required to maintain records for a minimum of:

• 2 years

• 5 years

• 7 years

• 10 years

What should financial institutions do if they are unable to complete the required CDD measures?

• Allow the transaction but monitor it closely

• File a suspicious transaction report (STR) and proceed

• Refuse to establish or terminate the business relationship

• Seek written approval from a regulatory body

Which risk factors typically require enhanced due diligence (EDD)?

• Customers operating in highly regulated industries

• Transactions involving non-face-to-face relationships

• Payment methods under $1,000

• All customers in FATF member countries