What is the relationship between the EU Anti-money Laundering Directives (AMLD) and local anti-money laundering (AML) regulations in European Union (EU) member states, in terms of their relevance for, applicability to, and impact on EU banks? (Select Two.)

• A.The EU AMLD and local AML regulations are separate and unrelated legal frameworks.
• B.Local AML laws and regulations override the requirements of the EU AMLD.
• C.The EU AMLD provide a framework that member countries must implement through local AML regulations.
• D.Local AML regulations may impose additional or more stringent requirements than the EU AMLD.
• E.The EU AMLD take precedence over local AML regulations.
• F.The EU AMLD and local AML regulations must have identical requirements.

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Common risks and red flags associated with trade finance clients may include: (Choose four.)

• A.account activity that is not consistent with the purpose of the account
• B.bills of lading matching the description of goods, quantities, and values with transshipment details justified
• C.transaction structures that appear unnecessarily complex
• D.trade documents, such as invoices and letters of credit, that are not clearly worded or are in foreign languages
• E.invoices with prices that are much higher than market price
• F.fluctuations in the pricing of standard goods and services

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An AML compliance officer is drafting plans to address deficiencies identified in an independent audit.
Which approach is the best option?

• A.Only commit to action plans that can be implemented and closed within the three-month management reporting cycle
• B.Draft action plans to address the root cause of the deficiencies, regardless of how long they will take to fully implement
• C.Draft action plans in consultation with the jurisdiction's FIU to remain aligned with other similar companies
• D.Only commit to action plans that require no new investment to maximize shareholder value

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While gaming platforms are typically used for recreational purposes, they can potentially be used for terrorist financing through games in which players can:

• A.buy in-game items with virtual in-game currencies.
• B.exchange in-game items with other players.
• C.trade in-game items with other players that can be exchanged for fiat currency
• D.obtain in-game materials by performing in-game activities.

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A large financial institution (FI) is considering expanding business to an area of the world with weak AML laws. The risk-based assessment indicates that the location will increase the FI's risk appetite beyond the stated acceptable amount.
Which risk factors should be used to identify the priority of the FI?

• A.Geographic risks
• B.Anonymous transactions risks
• C.Cash-intensive businesses risks
• D.Unknown third-party risks

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