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Worksheets

Page 1

Total questions: 50

Worksheet time: 25mins

Name
Class
Date
1.

What is the main goal of Anti-Money Laundering (AML) regulations?

a)

Increasing bank profits

b)

Preventing financial crimes and protecting the financial system

c)

Simplifying customer onboarding

d)

Encouraging cross-border transactions

2.

Which activity best represents money laundering?

a)

Paying employee salaries

b)

Reporting taxes accurately

c)

Concealing proceeds from illegal activities

d)

Opening a savings account

3.

Which stage of money laundering involves inserting illegal funds into the financial system?

a)

Integration

b)

Layering

c)

Placement

d)

Transformation

4.

The layering stage mainly aims to:

a)

Spend the money openly

b)

Hide the audit trail of funds

c)

Deposit cash into banks

d)

Invest in public infrastructure

5.

Integration in money laundering refers to:

a)

Breaking money into smaller amounts

b)

Making illicit funds appear legitimate

6.

Which institution issues international AML/CFT standards?

a)

IMF

b)

World Bank

c)

FATF

d)

OECD

7.

Which transaction is most likely to raise AML suspicion?

a)

Monthly salary payment

b)

Repeated large cash deposits without clear purpose

c)

Utility bill payment

d)

Fixed loan installment

8.

What does CFT specifically aim to prevent?

a)

Tax evasion

b)

Corruption

c)

Financing of terrorist activities

d)

Cybercrime

9.

What is the primary function of Customer Due Diligence (CDD)?

a)

Increase sales

b)

Understand and verify customer identity and risk

c)

Improve customer loyalty

d)

Reduce operational costs

10.

Which customer category generally requires Enhanced Due Diligence (EDD)?

a)

Retired employees

b)

Students

c)

Politically Exposed Persons (PEPs)

d)

Low-income workers

11.

What is a Politically Exposed Person (PEP)?

a)

A person working in private companies

b)

An individual with prominent public functions

c)

A bank employee

d)

A foreign investor

12.

Why are PEPs considered higher risk in AML/CFT?

a)

They earn high income

b)

They frequently travel

c)

They are more vulnerable to bribery and corruption risks

d)

They rarely use banking services

13.

What document helps identify the true owner behind a legal entity?

a)

Tax receipt

b)

Beneficial ownership information

c)

Marketing agreement

d)

Sales invoice

14.

Which of the following best describes a shell company?

a)

A company with many employees

b)

A company with real operational activities

c)

A company without significant operations, often used to hide ownership

d)

A government-owned company

15.

Structuring transactions to avoid reporting thresholds is known as:

a)

Integration

b)

Smurfing

c)

Placement

d)

Aggregation

16.

What is the role of transaction monitoring systems?

a)

Speed up payments

b)

Detect unusual or suspicious activities

c)

Reduce customer complaints

d)

Increase transaction volume

17.

Which factor is MOST relevant in AML risk assessment?

a)

Customer hobbies

b)

Customer geographic location

c)

Customer age

d)

Customer marital status

18.

A Suspicious Transaction Report (STR) should be filed when:

a)

A customer closes an account

b)

A transaction deviates from the customer’s normal profile

c)

A customer requests a bank statement

d)

A customer updates personal data

19.

Who is responsible for submitting STRs to authorities?

a)

The compliance officer

b)

The customer

c)

The IT support team

d)

The bank’s security guard

20.

What is “tipping off” in AML/CFT context?

a)

Reporting suspicious activity

b)

Informing a customer about an STR

c)

Escalating issues internally

d)

Conducting enhanced monitoring

21.

Which action is prohibited under AML/CFT rules?

a)

Monitoring transactions

b)

Customer education

c)

Informing customers they are being reported

d)

Updating risk profiles

22.

Ongoing Due Diligence means:

a)

One-time verification at onboarding

b)

Continuous review of customer activities and risk

c)

Verification only when problems occur

d)

Reviewing documents every ten years

23.

Why is record keeping important in AML/CFT?

a)

Marketing purposes

b)

Legal evidence and audit trail

c)

Reducing paperwork

d)

Increasing sales

24.

How long should AML records generally be retained?

a)

1 year

b)

2 years

c)

Minimum 5 years

d)

Until account closure only

25.

What is the main objective of a risk-based approach?

a)

Treat all customers equally

b)

Focus resources on higher-risk customers

c)

Eliminate low-risk customers

d)

Avoid customer onboarding

26.

Which scenario represents high AML risk?

a)

Local employee payroll

b)

NGO receiving frequent cross-border donations from high-risk countries

c)

School fee payment

d)

Pension payment

27.

What is the purpose of AML/CFT internal training?

a)

Improve marketing skills

b)

Ensure employees understand compliance obligations

c)

Increase productivity

d)

Reduce staff turnover

28.

What could be the consequence of failing AML/CFT obligations?

a)

Increased profits

b)

Regulatory sanctions and reputational damage

29.

What role does internal audit play in AML/CFT?

a)

Approving transactions

b)

Evaluating effectiveness of AML controls

c)

Selling products

d)

Managing customers

30.

Which sector is considered vulnerable to money laundering?

a)

Education only

b)

Real estate

c)

Agriculture only

d)

Manufacturing only

31.

Why is cash considered high risk in AML?

a)

Easy to trace

b)

Difficult to transport

c)

Harder to trace and anonymous

d)

Always illegal

32.

What is a red flag in AML?

a)

Normal business activity

b)

Indicator of potentially suspicious behavior

c)

Approved transaction

d)

Account closure

33.

Which approach improves AML effectiveness?

a)

Ignoring low-value transactions

b)

Combining technology and human judgment

c)

Manual processes only

d)

Customer trust only

34.

What does enterprise-wide risk assessment help identify?

a)

Profit targets

b)

Organizational AML vulnerabilities

c)

Employee salaries

d)

Customer satisfaction

35.

Which transaction is LEAST suspicious?

a)

Sudden large cash deposit by dormant account

b)

Transaction inconsistent with business profile

c)

Regular salary payment from employer

d)

Frequent transfers to tax havens

36.

Why must beneficial owners be identified?

a)

For marketing analysis

b)

To prevent misuse of corporate structures

c)

For tax discounts

d)

For customer loyalty

37.

Which authority typically receives STRs?

a)

Police department directly

b)

Financial Intelligence Unit (FIU)

c)

Tax office

d)

Central bank only

38.

AML/CFT programs should be:

a)

Static and unchanged

b)

Updated based on risk and regulation changes

c)

Optional

d)

Applied only to large institutions

39.

Which is an example of terrorism financing?

a)

Investing in stocks

b)

Sending funds to support terrorist acts

c)

Paying business expenses

d)

Buying insurance

40.

What is the purpose of sanctions screening?

a)

Increase customer onboarding

b)

Identify prohibited individuals or entities

c)

Improve service quality

d)

Speed up transactions

41.

When should sanctions screening be conducted?

a)

Only at onboarding

b)

Only during audits

c)

At onboarding and on an ongoing basis

d)

Only for foreign customers

42.

Why is documentation important in AML compliance?

a)

It provides evidence of compliance and supports audits

b)

It replaces training for employees

c)

It allows skipping risk assessments

d)

It is only for marketing purposes

43.

Which customer requires the MOST monitoring?

a)

Low-risk retail customer

b)

High-risk customer with complex transactions

c)

Student account

d)

Pensioner

44.

What is the main function of AML policies and procedures?

a)

Increase sales targets

b)

Provide guidance for consistent compliance

c)

Reduce staff workload

d)

Eliminate audits

45.

Which activity indicates possible layering?

a)

First cash deposit

b)

Multiple rapid transfers between accounts

c)

Salary credit

d)

Utility bill payment

46.

What is the main objective of FATF Recommendations?

a)

Regulate banking profits

b)

Combat money laundering and terrorist financing globally

c)

Control inflation

d)

Promote tourism

47.

What happens if an STR is filed?

a)

Customer account is automatically closed

b)

FIU analyzes and may forward to law enforcement

c)

Customer is informed

d)

Transaction is reversed

48.

Which factor increases AML risk?

a)

Transparent ownership

b)

Complex ownership structures

c)

Long-term relationship

d)

Stable income

49.

What supports effective AML governance?

a)

Strong senior management commitment

b)

No internal controls

c)

Ignoring audit results

d)

Manual reporting only

50.

A successful AML/CFT framework should be:

a)

Cost-focused only

b)

Risk-based, documented, and consistently applied

c)

Reactive only

d)

Applied once a year