- What is AML? Anti-Money Laundering (AML) refers to laws and regulations to prevent money laundering and terrorist financing activities.
- What is EDD? Enhanced Due Diligence (EDD) involves a more in-depth investigation of high-risk customers or transactions to identify potential illicit activities.
- What are the key components of an AML program? An AML program typically includes risk assessments, Know Your Customer (KYC) procedures, transaction monitoring, suspicious activity reporting, and employee training.
- CDD vs. EDD: What's the difference? Customer Due Diligence (CDD) is a standard process for assessing low-risk customers, while EDD involves more comprehensive checks for high-risk entities.
- What is a PEP? A Politically Exposed Person (PEP) is an individual with significant political influence, making them more susceptible to corruption risks.
- Why is KYC important? KYC procedures help identify and verify customers, thereby assessing the risk of money laundering or financing terrorism.
- What is the role of transaction monitoring? Transaction monitoring is crucial for detecting suspicious activities, helping organizations comply with AML regulations and mitigate risks.
- What are the red flags for money laundering? Red flags include unusual transaction patterns, large cash deposits, and transactions involving high-risk jurisdictions.
- What is a SAR? A Suspicious Activity Report (SAR) is filed when a potentially suspicious activity is identified, prompting further investigation.
- How do you assess customer risk? Customer risk is assessed by analyzing their profile, transaction behaviours, country of origin, and business activities.
- What are the key risk factors in EDD? High-risk jurisdictions, PEP status, complex ownership structures, and large-value transactions are critical risk factors in EDD.
- What is the role of FATF in AML? The Financial Action Task Force (FATF) establishes global AML standards and recommendations, influencing regulations worldwide.
- What is the source of wealth in EDD? The source of wealth refers to how a client accumulated their funds, which is essential in high-risk investigations.
- How can organizations ensure AML compliance? Compliance is maintained through regular employee training, up-to-date policies, risk assessments, and ongoing monitoring of activities.
- What is the role of sanctions lists? Sanctions lists identify individuals or entities that are prohibited due to their involvement in criminal or terrorist activities.
- What defines a high-risk jurisdiction? High-risk jurisdictions are countries with weak AML enforcement or a history of financial crimes, making them vulnerable to illicit activities.
- How should suspicious transactions be handled? Suspicious transactions should be reported internally, investigated, and a SAR filed with the appropriate authorities if necessary.
- What is the role of data privacy in AML/EDD? It is vital to ensure compliance with data protection laws while securely storing and sharing sensitive customer information in AML/EDD processes.
- How does technology support AML efforts? Technology plays a significant role in automating transaction monitoring, enhancing detection capabilities, and ensuring compliance with AML regulations.
- How do you stay updated with AML regulations? Stay informed through regulatory updates, industry forums, and continuous training on evolving AML laws and practices.
Retail Credit Risk Assistant || Fraud Prevention || Operations Banking || KYC || FATCA || Digital banking || Complaint Handling || CRM || Driving Customer Satisfaction.
2 个月Thanks for sharing
Data Analyst | Reporting Specialist | Compliance Manager
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