AML Rightsource Training Practice Test

These questions are part of the practice quiz. Start practicing

• Which of the following is a red flag for a front company?
• Which statement about nonprofit organizations is true?
• Which of the following describes the initial SAR filing deadline?
• Which statement best describes a Person in Need scam?
• Which statement best reflects the Cole Memo's stance on marijuana?
• In an S-Corporation, how are beneficial owners identified?
• Which statement correctly reflects penalties for SAR confidentiality breaches?
• Which pillar of the BSA program focuses on policies, procedures, and processes to limit and control risks, including controls for filing CTRs and timely reporting of suspicious activity?
• Which statement best defines Elder Financial Exploitation?
• Which statement describes a primary disadvantage of publicly traded companies?
• Which of the following is a key benefit of a C-Corporation?
• Which step is typically required to form a nonprofit organization?
• Which statement about Money Service Businesses (MSBs) is true?
• Which of the following is a red flag for funnel accounts?
• Which practice is commonly attributed to front companies?
• Multiple individuals transacting on the same account is a red flag for which phenomenon?
• Which of the following is NOT a pillar of the BSA program?
• When a transaction is flagged by a rule-based monitoring system, what is generated?
• Under Financial Crimes Advisory, which components are included in FCA Services?
• Family members of PEPs include which relationship according to FATF guidance?
• How is a C-Corporation taxed?
• What does SAR stand for in this context?
• Which money laundering technique involves moving funds through multiple accounts to obscure origin?
• Where should victim information be entered on a SAR form?
• Which of the following is NOT listed as a common crime we can help detect?
• Which is a red flag for check fraud detection?
• Which statement is true about cashier's checks?
• In which country is 1MDB based?
• Money laundering defined: what is it?
• What is the posting date of a transaction?
• What is the due date concept for a continuing activity SAR from the initial filing?
• Trafficking vs Smuggling: Which statement best differentiates them?
• Which statement describes a disadvantage of sole proprietorships?
• Which statement best describes a C-Corporation?
• Interest in Lawyers Trust Accounts (IOLTA) refers to which type of deposit account?
• Who initiates or sends funds in a transfer?
• What are the SAR levels listed?
• What should the 'What' section describe in a SAR narrative?
• In the San Bernardino self-funding case study, which financing detail helped facilitate weapons purchase?
• Which of the following is a red flag that cash transactions are being structured?
• Which factor contributed to fintech growth, specifically the rise of online marketplaces?
• Regarding forming a C-Corporation, which statement is true?
• IOLTA purpose:
• Geographic risk assessments often reference which of the following?
• Which of the following is NOT listed as a common business for sex trafficking?
• Which of the following is listed as a common con scheme?
• Paradise Papers leak revealed what kind of information?
• Which statement about offshore accounts is true?
• Which statement is true about human trafficking definitions in the material?
• Which of the following is a structuring red flag related to customer patterns?
• In fraud investigations, which question helps distinguish suspect from victim?
• What is Smurfing in financial crime techniques?
• Skimming is best described as
• Which is not one of the three classic stages of money laundering?
• In the context of labor trafficking red flags, which payroll condition is most concerning for a business?
• Which memo states that the Cole Memo is unnecessary?
• How is risk determined in Enhanced Due Diligence (EDD)?
• Which item is a data element of Customer Due Diligence (CDD)?
• Which of the following is a red flag for terrorist financing?
• Which is a red flag related to charity or non-profit fund usage?
• Account takeover occurs when a criminal poses as the customer and gains control of an account and then makes unauthorized transactions. Which statement best describes this?
• Regarding reporting thresholds, which question would be a red flag?
• Which statement about the Specially Designated Nationals (SDN) List is accurate?
• Which statement best reflects penalties for unauthorized disclosure of a SAR?
• Which of the following is NOT a listed S-Corporation benefit?
• Which pillar of the BSA requires policies and procedures to obtain and verify identity?
• Which is a transactional red flag in elder financial exploitation?
• Who is the Grantor/Settlor in a trust?
• In threshold terms, which amount applies to known suspects?
• Under the P2P Payments category, which platform is explicitly listed?
• Who develops an institution's Customer Risk Rating (CRR) model?
• In terrorist financing, which factor is identified as the ideological motive?
• What document outlines loan terms?
• In a trust, who is the Trustee?
• Which statement best describes the Risk Based Approach (RBA) in AML?
• Publicly Traded Company taxation:
• Which of the following is a red flag indicating unusual activity in wire transfers?
• Which item is NOT listed as a component of an MSB AML program?
• Which statement about FinCEN and MRBs is true?
• Are Non Governmental Organizations (NGOs) considered high risk customers under EDD?
• Which statement describes a common characteristic of funnel accounts?
• Which statement best describes the Sessions Memo's stance on federal law and marijuana?
• Which statement best describes a behavioral red flag in suspected elder financial exploitation?
• Which statement explains why the fintech industry has grown?
• What is typically received as part of the initial client engagement?
• Which item describes the designation of a person within BSA governance?
• LLC benefits include:
• Which of the following is a structuring red flag involving branches?
• Which of the following is cited as a reason financial institutions are reluctant to bank MSBs?
• Which financial institution is mentioned as involved with 1MDB?
• Which of the following is listed as a recruitment method for labor trafficking?
• Which of the following is a form of corruption?
• Which OFAC sanctions type describes broad sanctions on a jurisdiction that prohibit the export and/or import of goods, technology or services?
• Which method was used to conceal ownership of assets by Teodoro Nguema Obiang Mangue?
• Who is named as the Vice President of Equatorial Guinea in the material?
• Which item is NOT part of the Customer Identification Program (CIP)?
• Which statement about cashier's checks is true?
• Which of the following is a P2P online lending platform?
• Which statement about Business Accounts is true?
• FinCEN is the Financial Intelligence Unit for the U.S. which department oversees it?
• Which characteristic is most associated with charities and non-profit organizations in the context of terrorist financing risk?
• Which two countries are cited as examples in FATF's call for action against deficient jurisdictions?
• Which description best defines the Control Prong?
• Under a risk-based approach, which factor helps determine a PEP risk level most directly?
• MRB I includes which substance?
• Which organization is described as the largest international membership organization dedicated to enhancing the knowledge and expertise of financial crime detection and prevention professionals?
• Which factor has fintech growth most directly linked to in terms of consumer experience?
• In the in-app purchases laundering case, what was used to facilitate the laundering?
• Which item is not one of the three Pillars of BSA as described?
• Which entity processes card transactions for merchants?
• What is the reporting threshold for Money Services Businesses?
• Which of the following is NOT listed as a type of personal account?
• Savings Accounts are best described as:
• Currency exchanges are required to keep records when the amount exceeds what threshold?
• Which statement best explains why structuring is illegal?
• Which industry is NOT listed as a common industry for labor trafficking?
• Which of the following is not explicitly listed as part of a comprehensive BSA training program?
• Which of the following is categorized as an investment service and Robo-Advisor?
• Identity theft is defined as the fraudulent acquisition and use of a person's private identifying information, usually for financial gain. Which statement best matches this definition?
• Which item is used to characterize transactional risk in CRR: Transactional?
• Which statement describes S-Corporation taxation?
• Which statement best describes wire transfers?
• What best describes the OFAC Consolidated Sanctions List?
• Which term refers to the 'other party in the transaction' when two parties are involved?
• Which agency is a federal banking regulator?
• FFIEC guidance indicates enhanced due diligence should be applied to which customers?
• Which action does OFAC enforcement primarily involve?
• Which substance is listed under MRB III?
• Under a risk-based approach, is the rule 'Once a PEP, always a PEP' absolute?
• Publicly Traded Company formation involves:
• Which item is listed as an emerging threat in terrorist financing?
• Which element emphasizes the consequences of noncompliance within BSA training?
• Which role could be considered part of an international organization PEP?
• Which organization is described as a leader in the global fight to eradicate human trafficking?
• Sweep transfers are primarily associated with which users?
• In check terminology, who is the remitter/payor?
• Which statement about OFAC actions is true?
• Which factor best explains why fintech has become more popular in recent years?
• How much money was misappropriated from 1MDB according to the material?
• Which of the following is commonly considered a foreign PEP (politically exposed person)?
• In the Kickstarter incident, which was described as how funds were used?
• What is a defining characteristic of an S-Corporation?
• OFAC sanctions type described by restricting certain types of transactions and may impact payments outside a defined timeframe?
• Structuring reminder email: which statement best reflects guidance?
• Which statement describes a Joint Account?
• What did the Sessions Memo do to prior DOJ guidance?
• Which element is explicitly included in a comprehensive BSA training program?
• LLC taxation can be:
• Which action is explicitly listed as a typical AML requirement for MSBs?
• What threshold defines the Ownership Prong of Beneficial Ownership?
• Which statement reflects a restriction on discussing SARs within an organization?
• Which of the following is listed as an AMLRS-specific consequence?
• Which of the following is NOT one of Frank's four questions?
• Which section enables financial institutions to share information about suspected money launderers and terrorists among themselves (voluntary program)?
• According to FFIEC, what should CDD enable banks to predict?
• Funnel accounts are most prevalent in which types of crime?
• Which element is typical in advance-fee fraud?
• What best defines a Trust Account?
• Xanax is listed under which MRB category?
• What best defines a front company?
• Which factor best describes the role of technology advances in fintech growth?
• Which platform is NOT listed under Online Lending Companies?
• Which of the following is a key component of Enhanced Due Diligence (EDD)?
• In a funds transfer, who is the person or entity receiving the funds?
• Which agency must money services businesses (MSBs) register with according to AML regulations?
• How is income from a sole proprietorship reported for tax purposes?
• What is the typical outcome for victims of advance-fee fraud?
• Which group is categorized as Tier 2 MRB?
• Which pillar focuses on understanding customers and assessing risk?
• According to the FFIEC Manual, what is the objective of CDD?
• Which statement describes a Guardianship Account?
• Which of the following is a red flag for identity theft?
• In a Business Account, is it possible to have multiple Authorized Signers?
• Which statement about the SDN List is accurate?
• Common industries affected by labor trafficking include which of the following?
• Which statement about Peer-to-Peer (P2P) transfers is true?
• Cocaine is listed under which MRB category?
• Which of the following drugs is listed under MRB II?
• Structuring is illegal.
• Which of the following is NOT a common SAR narrative mistake?
• Has the CTR cash-transaction threshold of $10,000.01 remained unchanged since 1970?
• Among the following, which is commonly recognized as a high-risk customer category in AML practices?
• To elect S-Corporation status, which form is filed with the IRS?
• Which statement best describes 'out-of-pattern activity' in AML monitoring?
• Which of the following is a red flag in fraud monitoring?
• Which of the following is a potential disadvantage of nonprofit organizations?
• What is the term for the report filed to FinCEN and used by law enforcement?
• What is a primary responsibility of the BSA Compliance Officer?
• Which of the following is a red flag for terrorist financing related to stored value cards?
• Which of the following is commonly identified as a high risk customer category in Enhanced Due Diligence practice?
• OFAC sanctions target which of the following NOT listed as a target in the material?
• Identity theft is defined as the fraudulent acquisition and use of a person's private identifying information, usually for financial gain. Which statement best matches this definition?
• International wire transfers to and from which countries were noted in 9/11 characteristics?
• Does the Cole Memo change federal law?
• Which action relates to the CTR and cash instrument purchases just under the CTR threshold?
• In bust-out credit card fraud, which action helps the offender build a favorable credit profile before the bust-out?
• Which action is part of Enhanced Due Diligence (EDD)?
• Common purpose for funds in Trust:
• The acronym FATF stands for which of the following?
• Enhanced Due Diligence is associated with which outcome?
• Are Politically Exposed Persons (PEPs) considered high risk customers under Enhanced Due Diligence?
• Some exemptions or licenses may be granted under OFAC.
• Which of the following is a benefit of a publicly traded company?
• Which of the following is a structuring red flag?
• Under Beneficial Ownership rules, NGOs, charities and religious organizations typically must identify what?
• Which statement accurately describes CTRs and alerts?
• Which group is included in Tier 1 MRB?
• The act of splitting cash deposits or withdrawals to avoid a CTR is known as
• What is a primary regulatory risk cited for banks considering MRBs?
• Which statement about ongoing due diligence is true?
• Which statement describes a red flag related to rapid movement of funds?
• Which group is categorized as Tier 3 MRB?
• What is structuring in AML compliance?
• Which statement about money market deposit accounts compared to savings accounts is true?
• Enhanced Due Diligence (EDD) is used to mitigate risk of high risk customers. Which of the following is NOT listed as a common high risk customer category?
• What information is typically included in Articles of Incorporation?
• Which statement describes the formation of a sole proprietorship?
• Who is the Guarantor?
• What is Step 1 in searching for MSB information?
• Sectoral Sanctions typically include which characteristic?
• Close associates of PEPs are described by which combination?
• Which statement describes the alleged wrongdoing by U.S. Bank?
• Which individual is named as the co-conspirator whose request to open an account was denied due to concerns over wealth?
• Which item is listed as a component of PEP definitions under an international organization PEP?
• What best describes a funnel account?
• In Managed Services, which process includes CIP/CDD Verification and Watch List Alerts?
• What is the primary use of SARs?
• In the eBay related case involving illicit activity, which statement is true?
• Which of the following is not typically collected under Customer Due Diligence?
• What is the risk to institutions?
• What is a possible outcome after an in-depth case review within Transaction Monitoring?
• Which type of transfer is an electronic transfer of funds with a typical speed of 1 day or less and a fee of $15 to $25?
• Why is the Risk Based Approach used in AML programs?
• Which statement about POS transactions is true?
• Which film was funded with 1MDB proceeds?
• Which statement describes a risk related to SAR confidentiality?
• A Transit check is drawn on which bank relation?
• During the 9/11 terrorist financing pattern, withdrawals often occurred immediately after which activity?
• Which account type is associated with fiduciary responsibility?
• IOLTA activity restrictions:
• Which term best defines a person entrusted with a prominent public function by a foreign country?
• Which monetary instrument is purchased at financial institutions?
• This organization serves as the financial intelligence unit for the United States.
• If two different people deposit $5,000 and $6,000 into the same business account on the same day, does this trigger a CTR?
• Which statement about OFAC enforcement is correct?
• Which condition could lead to revocation of a nonprofit's tax-exempt status?
• Who typically receives ACH credits representing batches of card transactions?
• Which item is listed as a corruption red flag in the material?
• Which section provides the mechanism for law enforcement to communicate the names of suspected money launderers and terrorists to financial institutions?
• Which of the following best describes how S-Corporation profits are taxed to owners?
• Which of the following is NOT listed as a deposit account type?
• Which of the following is NOT listed as a service offered by Money Service Businesses (MSBs)?
• Where in a SAR narrative should include all locations of activity?
• Which statement about Peer-to-Peer (P2P) transfers is true?
• Which of the following is true about AML requirements and challenges in fintech?
• Section 326 describes the CIP minimum requirements.
• Which act provides the foundational framework for anti-money laundering (AML) compliance in the United States?
• In cash activity concerns, which statement best describes an Unknown Purpose of Funds?
• Are Non Resident Aliens considered high risk customers under Enhanced Due Diligence?
• What does it mean if a Secretary of State registration is marked "foreign"?
• Which statement best describes the red flag pattern of transactions?
• If a customer withdraws $9,999 and later deposits $10,000 on the same day in the same account, is a CTR required?
• Which statement best describes a shell company?
• Deviations or adherence to CDD are not sufficient factors to deem activity as reasonable. Which statement expresses this idea?
• In CTR reporting, cash transactions must be in the same direction within the report?
• OFAC Comprehensive Sanctions: Which of the following is NOT listed as a jurisdiction under OFAC Comprehensive Sanctions?
• Which risk is cited as a reason financial institutions are reluctant to bank the marijuana industry?
• Which statement describes a Certificate of Deposit?
• A Currency Transaction Report (CTR) form will include which of the following details?
• Labor trafficking forms include which of the following?
• In cash activity concerns, which statement best describes an Unknown Source of Funds?
• If a customer withdraws $6,000 in the morning and $7,000 in the afternoon on the same day, does a CTR need to be filed?
• A series of transactions that create a complex audit trail best describes which stage of money laundering?
• What is a key tax status typically held by nonprofit organizations?
• Which item is not listed as a Cole Memo enforcement priority?
• Sex trafficking often see an increase during large events. True or False?
• Watch List Alerts are part of which process?
• Which of the following is a red flag commonly used to detect unusual activity?
• Which is a stated disadvantage of an LLC?
• MSB registration must be renewed every two years.
• What is the purpose of a DBA filing?
• What is a primary benefit of funnel accounts for criminals?
• How are LLC owners typically paid?
• Which entities commonly issue money orders?
• Enhanced Due Diligence (EDD) is used to review what type of customers?
• Which description correctly identifies Tier 3 MRB participants?
• Which pillar is conducted by the internal audit department, outside auditors, consultants, or other independent parties?
• Which of the following is a listed financial crime category?
• What is a common benefit nonprofits can claim from donations?
• Under federal law, what is marijuana's status?
• What best describes a money market deposit account?
• In a trust, who is the Beneficiary?
• Which pillar is dedicated to staff training on BSA requirements?
• Which statement best describes the relationship among the MRB tiers?
• Which description about high risk jurisdictions is NOT a listed characteristic in this AML context?
• What was Mohammad Younis convicted of in the remittance case?
• Which entity may conduct Independent Testing according to the Pillars of BSA?
• Within how many days must an MSB register with FinCEN after establishment?
• Which platform is NOT listed as a crowdfunding platform?
• Which of the following is another benefit of a publicly traded company?
• Which of the following is a red flag for victim accounts, such as in trafficking cases?
• Which statement about debit card transactions is accurate?
• In banking terminology, what term describes an outgoing funds transfer?
• Which of the following is listed as a disadvantage of S-Corporation?
• Which statement describes a Custodian Account?
• MSBs are expected to file which reports as part of regulatory compliance?
• Which statement describes a structuring red flag related to fund usage?
• Record-keeping requirements specify transfers over which amount?
• What is a loan?
• Which item is explicitly listed as a red flag for detecting unusual activity?
• What was the stated purpose of 1MDB in the material?
• Which method is commonly used to gain information for account takeover?
• What is typically received when assigned a new client?
• Which statement describes placement in money laundering?
• A CTR form includes which of the following details?
• Which statement describes a CTR alert?
• Which platform is identified as a Robo-Advisor in the investment services category?
• Which statement about sweep transfers is accurate?
• Which substance is listed under MRB V?
• Which of the following statements is true about financial crimes in fintech?
• In Managed Services, which sequence describes the workflow for transaction monitoring?
• Which statement reflects FFIEC guidance regarding customer information?
• Form 990 is a tax form filed by nonprofits primarily to report what?
• What describes the Control Prong of Beneficial Ownership?
• Which entity is explicitly exempt from Beneficial Ownership rules?
• Which roles are typically part of the project engagement team?
• Which description reflects a common structuring red flag about available funds?
• Which statement describes integration in money laundering?
• Which statement describes an Individual Account?
• Which statement best describes the rapid movement of funds in financial crime techniques?
• CRR: Products / Services includes which of the following?
• Which sanctions list is the Non-SDN Iranian Sanctions List?
• Which of the following describes Fintech components?
• What is the minimum SAR filing threshold for MSBs?
• Which section of the USA PATRIOT Act allows financial institutions to share information amongst each other?
• Which of the following statements best captures a reason fintech has grown, focusing on immediacy and access?
• Which statement best reflects how CDD relates to investigations?
• What is the primary role of the Financial Action Task Force (FATF)?
• What is check kiting?
• Which item is a key component of CDD?
• In a SAR narrative, the 'When' section should include which information?
• In the case study of charities, how was money raised?
• Which role is responsible for overseeing BSA compliance within an organization?
• Publicly Traded Company example:
• Who is the Borrower?
• Which platform is a known crowdfunding platform listed in the material?
• Which statement best describes a Checking Account?
• Which of the following is listed as a corporation example?
• Continuing Activity SARs have which type of review period?
• Which item is included as a key component of Enhanced Due Diligence (EDD)?
• Which statement about the SAR narrative is true?
• What is required to form a Limited Liability Company?
• What is the typical fee for ACH transactions?
• Which pattern is a red flag in transaction monitoring for deposits?
• Which CRR 'Customer' risk profile field is listed?
• Which entity is typically able to offer stock options to raise money?
• What is the primary purpose of a Suspicious Activity Report (SAR)?
• Suboxone is listed under which MRB category?
• What are the two main service categories offered by AML Rightsource?
• What is a typical feature of money market deposit accounts regarding minimum balances?
• Which is a listed benefit of a sole proprietorship?
• What is the Sessions Memo's position on marijuana legality?
• What are the three stages of money laundering?
• Which of the following is true about Currency Transaction Reports (CTR) for cash activity?
• Which jurisdiction is listed as offshore with secrecy advantages?
• Which CRR risk factor category is listed as part of CRR risk factors?
• Which statement best defines a nonprofit organization?
• Which statement describes layering in money laundering?
• Ketamine is listed under which MRB category?
• What does Fintech refer to?
• Which location was involved in 1MDB bribery as per the material?
• Which of the following describes the addresses used by 9/11 hijackers?
• Which of the following is NOT listed as a reason to use an MSB?
• An on-us check is deposited at which location?
• Which statement is a disadvantage of forming a C-Corporation?
• On the MSB information search results page, what should you click to retrieve printable registration information?
• Who is the Lender?
• Which item is included in the 'Who' section of a SAR narrative?
• Which action is a method used to remove funds during an account takeover?
• Publicly Traded Company Beneficial Owners:
• In an LLC, which statement is true?
• A Currency Transaction Report is required for which transaction?
• What is a typical travel expense request in romance scams?
• In nonprofit organizations, who owns the entity?
• Which action was identified as a law-enforcement priority under the Cole Memo?
• Which action is a form of check fraud?
• Which of the following is a typical travel-related request in romance scams?
• Under the FATF definition, which role would be considered an international organization PEP?
• How is the owner typically paid in a sole proprietorship?