NEW
Font size
WorksheetsAsk the expert: Industry knowledge
Total questions: 17
Worksheet time: 17mins
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
What is the process for understanding who a potential customer is?
KYC – Know your customer
BYC – Be your Customer
RYK – Reveal your customer
KYC – Keep your customer
Which of the following could be consider a red flag?
A company registered in a high-risk jurisdiction
An abnormally large transaction with an unknown party
A high-risk product being sold by the merchant
All of the above
What is Transaction Laundering?
A new form of digital money laundering
The action whereby a merchant processes payment card transactions on behalf of another merchant
A growing problem
All of the above
The term money laundering comes from…
Mafia use of laundromats as a way of integrating funds from illicit activity into the financial system
The “cleaning” of dirty money
The movie “The Laundromat”
Nowhere… we don’t know why the term exists, it just does.
What is a “front company”?
The outward facing part of a business structure which interacts with the end customer
An entity set up and controlled by another organization with the characteristics of a legitimate business meant to disguises illegal activity
A tool for carrying out transaction laundering
B and C
Why is transaction laundering a growing problem for banks?
It is easier than ever to create “fronts” to launder transactions
The scale and changing nature of ecommerce has made it harder for banks to detect transaction laundering
There are no means to detect transaction laundering available as of now
A and B
Which of the following are transaction laundering typologies?
Pass through companies
Front Companies
Funnel Accounts
All the above
