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Quizzes > Business & Finance

Anti Money Laundering Quiz: Test Your AML & SAR Compliance

Quick AML practice test with realistic scenarios. Instant results and explanations.

Editorial: Review CompletedCreated By: Erica KeoeckelUpdated Aug 28, 2025
Difficulty: Moderate
2-5mins
Learning OutcomesCheat Sheet
Paper art free AML compliance quiz on golden yellow background anti money laundering suspicious activity reporting knowledge

This anti-money laundering quiz helps you practice BSA/AML rules, spot red flags, and decide when to file a SAR, using quick, real-world scenarios. To round out your knowledge, try compliance quiz questions, build legal basics with business law quiz, and refresh finance skills in the financial accounting quiz.

Which stage of money laundering involves introducing illicit cash into the financial system, often via cash deposits or cash-intensive businesses?
Layering
Integration
Obfuscation
Placement
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In the United States, what is the cash threshold that triggers a Currency Transaction Report (CTR)?
USD 5,000 or more in cash per transaction
USD 15,000 or more in cash per transaction
USD 10,000 or more in cash in a single business day
USD 3,000 or more in cash per transaction
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Suspicious Activity Reports (SARs) in the U.S. generally must be filed within how many days of initial detection of facts that may constitute a basis for filing?
60 days regardless of suspect identification
10 days
30 days
90 days in all cases
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Structuring is best described as which behavior?
Purchasing cashier's checks for legitimate bills
Withdrawing funds from multiple ATMs for convenience
Converting cash to wire transfers for speed
Breaking up cash transactions to avoid reporting thresholds
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True or False: Tipping off a customer that a SAR is being filed is prohibited.
True
False
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Which activity would most likely trigger Enhanced Due Diligence?
Customer is a high-ranking foreign government official
Customer opens a savings account with USD 100
Customer pays a phone bill online
Customer receives a regular salary
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True or False: SAR confidentiality rules allow sharing with the subject of the SAR if they request it in writing.
True
False
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What is layering in the context of money laundering?
Integrating funds into the legitimate economy via sales
Using proceeds to buy luxury goods
Depositing cash in small amounts
Moving funds through complex transactions to obscure origin
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Under the U.S. Travel Rule for funds transfers, originator and beneficiary information must accompany transfers at or above which threshold?
USD 3,000
USD 10,000
USD 5,000
USD 1,000
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Which is the primary difference between money laundering and terrorist financing?
Source of funds: illicit proceeds vs funds intended for ideological violence
Domestic vs international focus
Retail vs wholesale banking channels
Use of only cash vs only crypto
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Which best practice strengthens the quality of transaction monitoring alerts?
Relying solely on manual reviews
Periodic model tuning and validation with documented thresholds
Disabling false-positive review
Increasing thresholds indefinitely
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True or False: Under U.S. law, SARs and supporting documentation must be retained for at least five years.
False
True
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Which scenario most clearly indicates potential structuring to evade CTRs?
Check deposit of USD 25,000 from a known employer
Daily cash deposits of USD 9,800 across multiple branches by the same customer
ACH payroll deposits every two weeks
One-time cash deposit of USD 12,500 with business receipts
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What is a key element of Enhanced Due Diligence on a high-risk corporate customer?
Understanding beneficial ownership and source of funds/wealth
Offering premium credit cards
Providing free checks
Analyzing branch foot traffic
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True or False: Information sharing under USA PATRIOT Act Section 314(b) allows eligible institutions to share information about suspected money laundering or terrorist financing with one another.
False
True
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True or False: Under the U.S. Corporate Transparency Act (CTA), BOI reporting began in 2020 for all companies with a 30-day deadline.
True
False
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Which is the most appropriate response when a sanctions match is confirmed and blocking is required?
Only notify the customer of the block
Block the property, reject or freeze as required, and report to OFAC within required timeframes
Delete the customer to avoid future hits
Proceed with the transaction and document later
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Which AML control is most relevant for virtual asset service providers (VASPs) handling cross-border transfers?
Eliminating KYC for small wallets
Compliance with Travel Rule data-sharing requirements for originator and beneficiary
Higher ATM withdrawal limits
Relying solely on public block explorers
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True or False: Under U.S. rules, a wire transfer recordkeeping requirement applies at USD 3,000 or more for funds transfers.
True
False
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Which red flag is most associated with trade-based money laundering via over-invoicing?
Standard shipping times and costs
Documented discounts due to bulk purchase
Invoiced prices significantly above market without economic rationale
Stable pricing consistent with commodity indices
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Study Outcomes

  1. Understand AML Framework -

    Explain fundamental anti-money laundering compliance principles and regulatory mandates guiding financial institutions.

  2. Identify Suspicious Activity Indicators -

    Recognize common red flags and transaction patterns that may signal potential money laundering schemes.

  3. Apply SAR Procedures -

    Demonstrate the correct steps for completing and filing suspicious activity reports in accordance with compliance standards.

  4. Analyze Real-World Scenarios -

    Interpret practical case studies to pinpoint compliance gaps and propose appropriate AML responses.

  5. Evaluate Compliance Risk -

    Assess client and transaction profiles to determine risk levels and necessary due diligence measures.

  6. Reinforce Regulatory Knowledge -

    Recall key AML training concepts to solidify readiness for compliance audits and examinations.

Cheat Sheet

  1. Regulatory Framework and Key Standards -

    Familiarize yourself with cornerstone AML laws like the US Bank Secrecy Act (BSA) and the Financial Action Task Force's (FATF) 40 Recommendations, which form the backbone of any AML compliance quiz study guide. Remember the "B-SAFE" mnemonic: BSA, Sanctions, AML, FinCEN, Enforcement (FATF, fatf-gafi.org). Solid regulatory knowledge boosts your confidence in an anti money laundering quiz context.

  2. Customer Due Diligence (CDD) and Know Your Customer (KYC) -

    Master the risk-based CDD framework by classifying customers into risk tiers and conducting enhanced due diligence on high-risk clients, as outlined by FinCEN guidelines (FinCEN.gov). Use PEP screening and beneficial ownership checks to ensure compliance and reduce false flags in a suspicious activity reporting test. Regularly review CDD policies to excel in your AML training assessment.

  3. Suspicious Activity Reporting (SAR) Essentials -

    Understand when to file a SAR by identifying red flags like structuring, unusual fund flows, or mismatched customer profiles, according to FinCEN's SAR form instructions (FinCEN). Note the 30-day filing deadline and ensure your SAR narratives are concise yet comprehensive to ace any compliance quiz. Practice writing SARs to reinforce learning in an anti money laundering quiz environment.

  4. Transaction Monitoring and Red Flags -

    Implement automated monitoring systems to detect anomalies such as rapid fund movement, high-volume cash deposits, or transactions inconsistent with customer risk profiles, as per Basel Committee guidance (bis.org). Memorize key red flags - like "three transfers, three countries, three days" - to help during an anti money laundering quiz. Fine-tune your thresholds and alerts to sharpen skills in a compliance quiz setting.

  5. Recordkeeping and Ongoing Training -

    Maintain transaction and CDD records for at least five years, per BSA and FATF guidelines, to demonstrate a robust audit trail (FATF, BSA regs). Engage in regular AML training assessments, leveraging quizzes and scenario-based modules to stay current on emerging typologies. A proactive training regimen ensures you're always ready when faced with a compliance quiz or real-world audit.

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