What is the purpose of having controls to Know Your Customer, also known as KYC?

• A.Manage the compliance risk of your organization.
• B.Manage the compliance risk of your customer.
• C.Manage the financial crime risk to your customer.
• D.Manage the financial crime risk to your organization.

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The first step in the CDD of a legal person is to?

• A.Discover the type of business your customer undertakes.
• B.Find out what the account will be used for, and the level of activity your organization should expect to see.
• C.Understand the ownership structure and to track back to the ultimate beneficial owners and controllers.

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A hospitality worker brings deposits items that appear to be made from a cash intensive business. Is this a red flag?

• A.It depends on the location, business, and feeling of the employee accepting the deposit.
• B.No, the customer profile for the hospitality worker fits their occupation.
• C.Yes, anyone who brings that type of currency is likely involved to have received it from illegal means.

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Control activities in financial crime prevention include? (SELECT 3)

• A.Preventative Controls.
• B.Detective Controls.
• C.Corrective controls.
• D.Premeditated Controls
• E.Incorrect Controls

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What is the First Line of Defense? (FLOD)

• A.The _______ line of defense is the compliance and internal control functions. That includes the chief money laundering reporting officer, or MLRO, in charge of managing and monitoring AML and CFT activities.
• B.The ________ line of defense is internal audit. They perform an independent review of the controls applied by the lines of defense.
• C.The _______ line of defense is also known as the front line, these customer-facing employees are best-equipped to get the information you need for your customer due diligence. Can include Operations, risk, and control teams.

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