According to guidelines issued by Basel Committee on Banking Supervision relating to corporate governance principles for banks, what is the role of the board of directors in addressing an institution's AML oversight and governance?

• A.The board of directors should be responsible for overseeing the management of the bank's compliance risk but not involved in establishing a compliance policy that explains the processes by which compliance risks are to be identified and managed throughout the organization.
• B.The board of directors should establish a compliance function and approve the bank's policies for identifying, assessing, monitoring, reporting, and advising on compliance risk.
• C.The compliance function must have sufficient authority, stature, independence, and resources to be effective on its own and should not have access to the board of directors.
• D.The compliance function should report directly to the CEO concerning the bank's compliance with applicable laws, rules, and standards and only update the board of directors on the bank's efforts in managing compliance risk when required.

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Which section of the USA PATRIOT Act relates to forfeiture of funds and allows for extraterritorial reach?

• A.Section 319(b)
• B.Section 314(a)
• C.Section 314(b)
• D.Section 319(a)

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A bank in the Netherlands has been requested to share information about a series of transactions and related customers with a bank in Italy. Both banks are subject to European Union jurisdiction.
Which factor is the most important to consider before the Dutch bank shares the requested information with the Italian bank?

• A.The Dutch bank should require a production order from the Italian bank and receive approval from its legal department before sharing the requested information
• B.The need to fight financial crime outweighs the EU's data protection and privacy regulations
• C.The Dutch bank should limit any information sharing to what is necessary, reasonable, and proportionate, in line with applicable laws and regulations
• D.The Dutch bank's legal obligations to protect customer privacy and bank secrecy prohibit it from sharing any such information

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A key factor in the independence of an AML audit is that the auditor should.

• A.have never worked in previous assignments within the AMUCFT departments.
• B.be sufficiently trained in AML to be able to provide an independent review.
• C.have been screened by the board of directors before the audit starts
• D.have no involvement with the organization's AML/CP T compliance staff.

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The Financial Action Task Force (FATF) routinely publishes a catalogue of jurisdictions requiring enhanced monitoring which is commonly called the:

• A.yellow notice
• B.grey list
• C.red notice
• D.white list

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