14 Questions
What is the primary goal of applying risk mitigating factors in the Know Your Customer profession?
To lower the risk associated with customers
In the context of Know Your Customer, how can understanding risk factors and mitigating factors benefit the analysts?
By providing tools to lower risk ratings
How can high-risk sectors be defined under the Prevention of Money Laundering and Terrorist Financing Act?
Industries with higher risks of illegal financial activities
What is the significance of sector knowledge for CDD and Transaction Monitoring analysts?
It helps in identifying money laundering risks
How can mitigating factors impact the risk rating given to a client's business activities?
They can lower the risk rating
Why is it important for CDD analysts to assign risk ratings of low, medium, or high to clients' business activities?
To better understand and communicate the level of risk
Which of the following is NOT considered a high-risk sector related to money laundering according to the text?
The banking sector
What is the main reason the transportation sector is considered a high-risk area for money laundering according to the text?
All of the above
What is a key technique used in trade-based money laundering (TBML) according to the text?
All of the above
What is the main reason TBML is difficult to detect and investigate according to the text?
All of the above
What is a key challenge in monitoring the transportation sector for money laundering?
There is often too much freight and too little time to properly inspect all shipments
Which of the following is NOT mentioned in the text as a high-risk sector for money laundering?
The trust service provider sector
What is a key technique used in the 'multiple billing' method of trade-based money laundering?
Generating multiple invoices for a single shipment or transaction, each with different values, quantities or descriptions
What is a key factor that makes the transportation sector vulnerable to trade-based money laundering?
There is often too much freight and too little time to properly inspect all shipments
Learn about high-risk sectors within the Know Your Customer profession, including examples and risk mitigation strategies. Understand how to navigate risks to potentially avoid onboarding risky clients. Enhance your knowledge on risk factors and mitigation techniques in the KYC field.
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