Risk Pyramid in Transaction Monitoring Quiz

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What is the first phase of the risk pyramid in transaction monitoring?

Mitigation

Customer Selection

Assessment

Identification (correct)

In transaction monitoring, what does 'identification' primarily refer to?

Identifying unusual or suspicious transactions (correct)

Setting up business rules

Researching and testing framework

Selecting customers for investigation

What triggers the system to signal that a cash transaction is above a certain threshold value?

Cash withdrawal or deposit (correct)

Tax havens transfer

Currency exchange

High-risk countries transaction

How does the system recognize when to trigger an investigation in transaction monitoring?

By exceeding a certain threshold value or meeting specific scenario criteria Signup and view all the answers

What is the purpose of the assessment phase in the risk pyramid of transaction monitoring?

To evaluate and investigate unusual transactions Signup and view all the answers

How are investigations for unusual or suspicious transactions typically assessed in transaction monitoring?

By analyzing anomalous indicators and the investigation framework Signup and view all the answers

What is the role of the Financial Intelligence Unit?

Collect and share unusual transactions with investigative agencies Signup and view all the answers

What happens if there is a delay in reporting an unusual transaction?

A fine may be imposed Signup and view all the answers

Who must be informed about a suspicious transaction before it is reported to the Financial Intelligence Unit?

The Compliance team Signup and view all the answers

What action can the central bank of a country take if financial institutions do not comply with regulations?

Imposing fines on non-compliant institutions Signup and view all the answers

What is the consequence of reporting an unusual transaction to the Financial Intelligence Unit?

Other relevant parties are notified and involved Signup and view all the answers

Why does the Financial Intelligence Unit share reported unusual transactions with other parties?

To collect data on suspicious activities Signup and view all the answers

What is the first step in conducting a customer survey?

Writing a general customer picture Signup and view all the answers

What is the purpose of reviewing transactions in the customer survey?

To check if transactions fit the client profile Signup and view all the answers

What is the role of a Compliance professional in the survey process?

To advise senior management on cases Signup and view all the answers

What is the purpose of the four-eye principle in the survey process?

To check the overall quality of the file Signup and view all the answers

What are subjective indicators in the survey process?

Indicators developed over time based on professional judgment Signup and view all the answers

Which management measures can be taken in the mitigation phase?

All of the above Signup and view all the answers

What is the purpose of internal escalation in the survey process?

To apply internal measures immediately Signup and view all the answers

What is the role of the Quality Checker in the survey process?

To check the overall quality of the file Signup and view all the answers

What is the purpose of blocking transactions in the survey process?

To investigate unusual transactions Signup and view all the answers

What is the purpose of external reporting to the Financial Intelligence Unit?

To report suspicious activities Signup and view all the answers