18 Questions
What are the three key steps involved in KYC according to SWIFT?
Identify customers, verify sources of funds, assess money laundering risks
Why is it important for banks to comply with AML and CFT regulations?
To prevent fraud and financial crime
What does a sound risk culture at all levels of institutions promote?
Effective management of risk
Which body generally regulates banks and ensures compliance with prudential requirements?
Central banks
What do conduct of business rules generally focus on in the banking sector?
Protecting consumer rights
Why is effective oversight by the management body crucial in internal governance arrangements?
To ensure sound risk management practices
In popular culture, which TV show involves a chemistry teacher getting involved in money laundering to pay for cancer treatment?
Breaking Bad
What is the major component of anti-money laundering legislation mentioned in the text?
KYC (Know-Your-Customer)
Which financial institution was highlighted in an episode of 'Dirty Money' for its involvement in money laundering for drug cartels?
HSBC
Which financial crime concept is closely associated with the requirement for bankers to know their customers?
Money laundering
What is the primary objective of due diligence measures like KYC in the banking sector?
To authenticate and record customer identities
Which show depicts a financial advisor being forced into money laundering for drug traffickers?
Ozark
What is the main purpose of money laundering?
To make illegal money appear legitimate
What was the catalyst for the significant adoption of anti-money laundering legislation mentioned in the text?
The attacks on 9/11
What is a common form of internal fraud in banks as mentioned in the text?
General ledger fraud
Which sector tends to oppose anti-money laundering legislation based on the text?
Bank lobbyists
What aspect of money laundering is highlighted as becoming an industry in itself in the text?
Money laundering activities
Which event prompted the US government to seek rapid regulatory responses including anti-money laundering measures?
The attacks on 9/11
Test your knowledge on the importance of internal governance arrangements in banks, including their impact on risk management, oversight by management bodies, promoting a sound risk culture, and enabling competent authorities to supervise effectively.
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