Chapter 4-5

What is the threshold for Customer Due Diligence (CDD) and record-keeping requirements for casinos under the FATF Recommendations?

• • USD/EUR 1000

• • USD/EUR 3000

• USD/EUR 5000

• USD/EUR 10000

What measures should be taken for Politically Exposed Persons (PEPs)?

• Ignore the source of wealth and funds

• Apply standard due diligence for all PEPs

• Conduct Enhanced Due Diligence (EDD) for foreign PEPs

• Avoid senior management approval

What is the purpose of sanctions screening in financial institutions?

• To increase bank profits

• To reduce the number of financial institutions

• To prevent transactions involving sanctioned individuals or entities

• To promote the use of cash transactions

What protections are in place for financial institutions and their employees when reporting suspicious transactions?

• They are protected by law from criminal and civil liability if they report in good faith

• They are required to disclose the report to the customer

• They are exempt from reporting requirements

• They are allowed to share the information with any third party

What is the primary purpose of AML/CFT risk assessment?

• To increase bank profits

• To identify, assess, and understand ML/TF and PF risks

• To promote the use of cash transactions

• To reduce the number of financial institutions

Which of the following is NOT a category of risk assessment?

• Customer risk

• Geographic risk

• Product risk

• Marketing risk

What are the components of ML/TF risk?

• Threat, Vulnerability, Consequence

• Profit, Loss, Risk

• Customer, Product, Service

• Identification, Analysis, Assessment

What is the role of the Risk-Based Approach (RBA) in AML/CFT efforts?

• To increase bank profits

• To ensure effective resource allocation across the AML/CFT regime

• To promote the use of cash transactions

• To reduce the number of financial institutions

Which of the following is NOT a step in the ML/TF risk assessment process?

• Identification

• Analysis

• Assessment

• Marketing

Which of the following is a key factor in the risk assessment process for financial institutions?

• The marketing strategies of the bank

• The nature, size, and complexity of the client's business

• The number of employees in the bank

• The location of the bank's headquarters