AML/CTF Quiz 1

The primary goal of Anti-Money Laundering (AML) laws is to:

• Facilitate international trade

• Prevent financial crimes such as money laundering and terrorism financing

• Increase government revenue

• Simplify tax collection

Name the three stages of money laundering.

Which of the following best describes a suspicious transaction report (STR)?

• A report filed when a bank detects unusual or suspicious activities that may involve money laundering or terrorist financing

• A report filed when a bank receives a large cash deposit

• A report filed to confirm a customer's identity

• A report filled annually by financial institutions to disclose their profits

What does the term "Know Your Customer" (KYC) refer to in the context of AML/CTF?

• A financial analysis tool

• A customer loyalty program

• A set of procedures to verify the identity and assess the risk of potential customers

• A marketing strategy to attract new customers

Which type of financial institution is most likely to be at risk of money laundering activities?

• Insurance companies

• Credit unions

• Investment banks

• Retail banks

In the context of AML/CTF, the term "beneficial owner" refers to:

• The legal owner of a bank account

• The employee responsible for managing a customer's account

• The person who ultimately owns or controls a customer or the person on whose behalf a transaction is being conducted

• The shareholder with the largest number of shares in a company