Preview Questions AML Specialist | Role Specific Skill

Question 1: What is the significance of know-your-customer (KYC) data in fraud detection and prevention in the BFSI industry?

Which action should you take?

Choose only one option

It ensures that all customers are approved instantly

It only applies to new customers

It allows for automatic approval of large transactions

It provides a foundation for detecting discrepancies in customer behavior

Question 2: What is a key challenge in investigating structuring (smurfing) in AML cases?

Which action should you take?

Choose only one option

Verifying the identity of each person involved in structuring

Identifying small, frequent transactions that collectively exceed the reporting threshold

Monitoring only international wire transfers

Deciding which financial institution should take action

Question 3: In a comprehensive AML risk management framework, which of the following would be considered the first step in risk assessment?

Which action should you take?

Choose only one option

Identifying and classifying potential risks

Setting up monitoring systems

Training employees on AML regulations

Establishing reporting procedures

Question 4: Which fraud detection system is best used to flag suspicious transactions involving rapid account activity?

Which action should you take?

Choose only one option

Real-time transaction monitoring systems

Customer self-reporting systems

Static rule-based fraud detection

Batch processing fraud detection

Question 5: In the context of AML investigations, how is suspicious behavior defined?

Which action should you take?

Choose only one option

Behavior that deviates from established customer profiles and transaction patterns

Customer accounts with negative balances

Any transaction over a certain threshold amount

Transactions made during off-hours

Question 6: Under FATF recommendations, what is the minimum due diligence required for high-risk countries in AML compliance?

Which action should you take?

Choose only one option

Basic KYC verification

Enhanced Due Diligence (EDD)

Standard risk assessments

Periodic client reviews