BBF AML-CFT Training

Which of the following statements is true about Know Your Customer (KYC) regulations?

KYC means Know Your Customer

It was introduced under Prevention of Money Laundering Act

KYC process includes ID card verification, face verification, document verification such as utility bills for proof of address.

Banks must comply with KYC regulations and anti-money laundering regulations to limit fraud.

All are true

Know Your Customer (KYC) regulations have been introduced in financial transactions under which of the following regulation?

Banking Companies Act

Prevention of Money Laundering Act

Reserve Bank of Fiji Act

Companies Act

Know Your Customer (KYC)/Anti-Money Laundering (AML)/CFT guidelines to prevent bank from being used, intentionally or unintentionally, by criminal elements for money laundering or terrorist financing activities, what does "C" stands in "CFT"?

Which of the following steps are involved in Money Laundering? 1. Placement 2. Layering 3. Integration 4. Counterfeiting

Which of the following statements about The Financial Action Task Force (FATF) are correct?

FATF is an inter-governmental organization

FATF issues recommendations to fight money laundering and terrorist financing

FATF was created in 2018

What penalties can a financial institution incur for Non-compliance with the Anti-Money Laundering and Financing or Terrorism rules?

Fines

Disciplinary sanctions

Criminal penalties

Public disclosure of sanctions

Who is concerned by the reputational and image risks related to Money Laundering and Financing of Terrorism?

Only your department or unit

Only your bank

Your entire group

Only the shareholders

Before starting a business relationship, the financial institution must identify a client who is a natural person and verify that identity using written evidence. It must also know the nature and purpose of the relationship and collect any useful information.

True

False

When the client or their legal representative is not physically present for onboarding, the financial institution must NOT apply special due diligence measures.

True

False

When it is not enough to establish the persons' identity. You must also know what their business is, their income, assets, motivations and expectations, as well as any other information that is needed to build their AML/CFT risk profile.

True

False

When the financial institution is unable to obtain the customer due diligence information, it must refuse to establish the business relationship.

True

False

Politically exposed persons are individuals who are or were entrusted with prominent public functions, irrespective of their place of residence or the place where they carry out such functions.

True

False

Customer knowledge should not be reviewed and updated periodically, and as frequently as needed for the customer's risk profile.

True

False

The regulations require financial institutions to categorise their customers, their activities and the transactions they process, according to their exposure to money laundering risk with the due diligence appropriate for each profile.

True

False