According to the Basel Committee's principles on customer due diligence, a bank should:

• A.maintain systems to detect suspicious transactions based on a customer's velocity and volume patterns.
• B.refuse to conduct ongoing business with a customer who fails to provide proper identification documentation.
• C.obtain the information to establish the identity of a customer, beneficial owners, and any person acting on behalf of the customer,
• D.file a suspicious activity report when there is reason to believe the bank is being used for criminal activity.

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Which element is generally required of all anti-money laundering programs?

• A.A qualified compliance officer to manage the program
• B.A computer-based suspicious activity monitoring system
• C.An enhanced due diligence program for all new customers
• D.Annual in-person AML training for all employees

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Which action should an FIU consider taking when it has information that might be useful to another FIU?

• A.In accordance with Wolfsberg guidelines, submit the information to the other FIU in written form
• B.Supply the information to the other FIU spontaneously as soon as the relevance of sharing the information is identified
• C.Take no action until contacted by the other FIU
• D.Request approval from the Egmont Group prior to sharing the information with the other FIU

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Following a recent exercise which explained how a correspondent banking operation could be used by money launderers, an anti-money laundering specialist decided to re-write the due diligence procedures for entering into agreements with foreign financial institutions. Which of the following information should be included to establish a rigorous "Know Your Respondent" procedure?
1.Respondent's management, nature of license, and major business activity.
2. Computer equipment and software capability.
3. The quality of supervision in the home country.
4. Respondent's location, in particular the existence of a real physical presence.

• A.2, 3, and 4 only
• B.1, 2, and 4 only
• C.1, 3, and 4 only
• D.1, 2, and 3 only

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Which statement best describes a key aspect of the AML Directive of the EU regarding business relationships and transactions with high-risk third countries?

• A.Obliged entities should voluntarily consider the implementation of increased external audit requirements for branches and subsidiaries located in high-risk countries.
• B.Obliged entities, in accordance with the member state regulations, should determine at a national level the measures that can be used for enhanced due diligence.
• C.Obliged entities should implement additional mitigating measures complementary to the enhanced customer due diligence procedures, in accordance with a risk based approach.
• D.Obliged entities should not take into account specific circumstances when performing enhanced due diligence measures.

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