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KYC: Understanding Transaction Monitoring in AML

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Questions and Answers

What is the main purpose of objective indicators in transaction monitoring?

To monitor compliance with laws and regulations
To develop a professional judgment
To advise senior management on compliance measures
To identify unusual transactions that do not fit the customer profile (correct)

What is the role of a compliance professional in the mitigation phase?

To monitor compliance with laws and regulations
To advise senior management on compliance measures and determine heavier measures (correct)
To report unusual transactions to the Financial Intelligence Unit
To review the quality of the file and identify risks

What is the purpose of the four-eyes principle in the mitigation phase?

To report unusual transactions to the Financial Intelligence Unit
To advise senior management on compliance measures
To monitor compliance with laws and regulations
To review the quality of the file and identify risks (correct)

What is the role of the Central Bank in countering money laundering and terrorist financing?

To supervise compliance with laws and regulations of financial institutions (D) Signup and view all the answers

What is the purpose of the Financial Intelligence Unit?

To collect and share unusual transactions with relevant parties (B) Signup and view all the answers

What is the consequence of non-compliance with laws and regulations by financial institutions?

A fine from the Central Bank (A) Signup and view all the answers

What is the role of subjective indicators in transaction monitoring?

To develop a professional judgment (C) Signup and view all the answers

What is the purpose of internal escalation in the mitigation phase?

To apply internal measures to contain the risk of illegal activities (B) Signup and view all the answers

What is the purpose of blocking transactions in the mitigation phase?

To contain the risk of illegal activities (D) Signup and view all the answers

What is the role of senior management in the mitigation phase?

To be aware of and authorize the reporting of unusual transactions to the Financial Intelligence Unit (B) Signup and view all the answers

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