AML Exam
AML Compliance Quiz
Test your knowledge on Anti-Money Laundering (AML) practices and enhance your understanding of essential compliance measures.
- Multiple-choice and checkbox questions
- Covers crucial aspects of KYC (Know Your Customer)
- Ideal for legal professionals and compliance officers
What is Money Laundering (ML)?
Getting away with tax obligations
Concealing of the origins of illegally obtained money
Infringing legal documents for the purpose of profit making
Please tick every transaction below that requires conducting a KYC. (You can choose more than one answer)
Incorporating a company
Carrying out corporate procedures for the convention of an Ordinary General Assembly (OGM)
Carrying out corporate procedures for the convention of an Extra-ordinary General Assembly (EGM)
Drafting a management agreement
Conducting Due Dligence (DD) on a real estate property
Giving a general advice on the legal framework regulating receiving foreign grants
Setting up a joint venture
Restructuring of shareholding in a company
Drafting a Share Purchase Agreement (SPA)
Conducting a DD in preparation of a sale or purchase of a company
Drafting service agreements
ABC, a limited liability company, is S&S's client. YM is a natural person who is a shareholder in ABC. YM owns 8% of the capital of ABC. What document(s) should be collect for YM?
Proof of identity (National ID or Passport) only
Proof of identity (National ID or Passport) plus proof of work status
Nothing at all
Company A, which is a limited liability company, has 3 shareholders, B (natural person), C (natural Person), and D (juristic person); they own 9%, 41%, 50% of the shares of the company respectively. D is a joint stock company which has 2 portion holders, M (natural person), and N (juristc person); they own 1% and 99% of the portions respectively. N is a Joint stock company that is owned by H, G, and F who are all natural persons; they own 15%, 45%, and 40% of the portions erspectively. Who are the beneficial owners of A?
B, C, and D
C and D
C, H, G, and F
H, G, and F
C, D, and J
XYZ is a limited liability company in the construction sector. S&S is the legal counselor for XYZ in a transaction in which XYZ will acquire another company. For the KYC, all documents related to XYZ were submitted and complete, information about managers has been verified. Shareholders of XYZ are TR (natural person), HD (natural Person), and DEF (a juristic person) who own 20%, 29%, and 51% respectively. The identity verification procedures of TR, HD and DEF have been completed. Do we need to make any further investigation? (You can choose more than one answer)
Yes, because DEF is a juristic person
Yes, because DEF owns the largest share of capital among all shareholders
Yes, because DEF owns more than 10% of the capital of XYZ
No, we do not need to make any further investigations
(Continues the scenario in Q5) DEF has 4 shareholders. Each of them owns between 20% and 50% of the capital of the company. They are all natural persons, and the identity verification procedures of all of them have been completed. Do we need to make any further investigations?
Yes, because we still need to know if DEF has a controlling stake in another company (in addition to XYZ)
No, because none of the shareholders owns the absolute majority of shares
No, because all beneficial owners have been reached
Which of the following is a high-risk client requiring more stringent KYC procedures? (You can choose more than one answer)
A company whose manager is a former head of state
A company whose shareholder (that owns less than 10% of the company) is a sister of a High Ranking Diplomat
A high ranking official of a political party
A company whose director is the cousin of a high ranking military official
A company whose partner is a former CEO of a multinational company
Which of the following constitutes a high-risk activity requiring more stringent KYC procedures? (You can choose more than one answer)
Investment banking
Activities of non-governmental organizations (NGOs)
All agricultural activities
Activities of hotels
Activities of shops of jewelry and precious metals
Currency speculation
Real estate activities
When should the lawyer start a KYC? (You can choose more tha one answer)
Only on the first time he/she accepts a client who will carry out a transaction for which the law reuires conducting a KYC
Every time he/she opens a matter in relation to a transaction for which the law reuires conducting a KYC
Whenever he/she suspects a specific transaction involves a money laundering crime only if that initiating a KYC would not notify the client of this suspicion
Whenever he/she suspects a specific transaction involves a money laundering crime even if initiating a KYC would notify the client of this suspicion
Whenever a doubt arises regarding the accuracy of information previously collected
What should the lawyer do when the client is reluctant to provide the required documents for the KYC?
Proceed with the transaction while continue to remind the client of the necessity of document completion
Terminate the relationship with the client
Notify the CBE unit that a ML crime has been witnessed
Confront the client that a suspicion has arisen regarding his activity
Which of the following could be an indication that the client is involved in ML?
The client does not have a bank account and insists on dealing with cash money
The client has so many bank accounts
The client asks for drafting a fictitious contract not for actual initiation or documentation of rights
The client irrationally insists on maintaining a business that has been incurring losses for a lot of time, and that has no potential
All of the above
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