Preview Questions AML Specialist | Role Specific Skill

Question 1: How does transaction monitoring help in detecting potential fraud in AML compliance?

Which action should you take?

Choose only one option

By analyzing transactions in real-time to identify suspicious patterns

By analyzing customer demographics

By enhancing customer satisfaction through faster approvals

By automatically blocking all high-value transactions

Question 2: What is the significance of the Money Laundering Control Act of 1986 in the US?

Which action should you take?

Choose only one option

It criminalized money laundering and required financial institutions to establish AML procedures

It simplified the process of cross-border financial transactions

It introduced a new tax reporting system

It established a regulatory body for financial fraud

Question 3: Which of the following is a critical step when investigating a suspicious transaction in an AML compliance framework?

Which action should you take?

Choose only one option

Sending the transaction directly to regulators without review

Gathering and analyzing transaction data to identify patterns of unusual behavior

Notifying the customer about the suspicious activity

Simply reporting the transaction to authorities without investigation

Question 4: Which of the following fraud detection techniques is most effective for identifying identity theft in the context of online banking transactions?

Which action should you take?

Choose only one option

Transaction velocity monitoring

IP address tracking alone

Traditional security questions (e.g., mother's maiden name)

Biometric authentication (e.g., fingerprint or facial recognition)

Question 5: How can cross-border transactions be effectively monitored to prevent terrorist financing?

Which action should you take?

Choose only one option

By imposing a global transaction limit across all customers

By using AML compliance systems that track international money transfers

By restricting transactions with high-risk countries only

By manually reviewing each transaction on a case-by-case basis

Question 6: What is the role of third-party risk management in AML compliance?

Which action should you take?

Choose only one option

To monitor transactions of non-bank entities

To manage internal staffing and compliance systems

To assess risks introduced by external vendors and partners

To evaluate the market risks affecting AML procedures