Q21. The Corporate Transparency Act (CTA) in the United States requires:
a) Firms to report their beneficial owners to the government
b) Beneficial ownership information to be recorded and reported
c) Both a and b
d) None of the above
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Correct Answer: c) Both a and b
Explanation: The CTA requires firms to report their beneficial owners to the government and sets out requirements around how this beneficial ownership information should be recorded and reported.
Q22. Which of the following is NOT a component of the EU’s latest AML package?
a) A regulation to establish an AML Authority (AMLA)
b) A new 6th Anti-Money Laundering Directive
c) A new regulation providing clarity for obliged entities
d) A requirement for financial institutions to disclose beneficial ownership information
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Correct Answer: d) A requirement for financial institutions to disclose beneficial ownership information
Explanation: The EU’s latest AML package does not include a requirement for financial institutions to disclose beneficial ownership information. This requirement was introduced by the Corporate Transparency Act in the United States.
Q23. The UK’s Economic Crime Plan 2 (ECP2) aims to:
a) Increase resources for law enforcement
b) Expand the National Crime Agency’s capacity to fight corruption
c) Focus on information sharing, data, and technology
d) All of the above
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Correct Answer: d) All of the above
Explanation: The UK’s ECP2 aims to increase resources for law enforcement, expand the National Crime Agency’s capacity to fight corruption, and focus on information sharing, data, and technology.
Q24. The 2024 National Strategy for Combatting Terrorist and Other Illicit Financing (2024 Strategy) released by the U.S. Treasury Department aims to:
a) Expand the scope of AML/CFT compliance obligations to sectors not currently subject to the BSA
b) Support efforts by the legal sector to adopt ethics rules that institute AML/CFT measures for attorneys
c) Consider updates to the regulatory requirements for virtual asset activities
d) All of the above
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Correct Answer: d) All of the above
Explanation: The 2024 Strategy aims to expand the scope of AML/CFT compliance obligations, support efforts by the legal sector to adopt AML/CFT measures for attorneys, and consider updates to the regulatory requirements for virtual asset activities.
Q25. The Financial Intelligence Unit-India (FIU-IND) is authorized to obtain which of the following reports from banks?
a) Cash Transaction Reports (CTRs)
b) Suspicious Transaction Reports (STRs)
c) Cross Border Wire Transfer Reports
d) All of the above
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Correct Answer: d) All of the above
Explanation: The FIU-IND is authorized to obtain Cash Transaction Reports (CTRs), Suspicious Transaction Reports (STRs), and Cross Border Wire Transfer Reports from banks in India.
Q26. Under the Prevention of Money Laundering Act, 2002 (PMLA) in India, it is mandatory for banks to furnish a monthly CTR to the FIU-IND for transactions over:
a) Rs. 5 lakh
b) Rs. 10 lakh
c) Rs. 15 lakh
d) Rs. 20 lakh
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Correct Answer: b) Rs. 10 lakh
Explanation: Under the PMLA, it is mandatory for banks in India to furnish a monthly CTR to the FIU-IND for transactions over Rs. 10 lakh or its equivalent in foreign currency.
Q27. The International Financial Services Centres Authority (IFSCA) in India has recently introduced regulations for:
a) Book-keeping, Accounting, Taxation and Financial Crime Compliance Services
b) Anti-Money Laundering and Countering the Financing of Terrorism
c) Beneficial Ownership Reporting
d) All of the above
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Correct Answer: a) Book-keeping, Accounting, Taxation and Financial Crime Compliance Services
Explanation: The IFSCA has recently introduced the IFSCA (Book-keeping, Accounting, Taxation and Financial Crime Compliance Services) Regulations, 2024.
Q28. Which of the following is NOT a type of financial crime?
a) Money Laundering
b) Terrorist Financing
c) Fraud
d) Shoplifting
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Correct Answer: d) Shoplifting
Explanation: Shoplifting is a theft crime and not a financial crime. Financial crimes are non-violent crimes committed for financial gain, such as money laundering, terrorist financing, and fraud.
Q29. Which of the following is an example of money laundering?
a) Disguising the proceeds of illegal activities as legitimate funds
b) Providing funds to individuals or groups to finance terrorist attacks
c) Intentionally deceiving someone for personal or financial gain
d) Hacking into computer systems to steal personal information
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Correct Answer: a) Disguising the proceeds of illegal activities as legitimate funds
Explanation: Money laundering involves disguising the proceeds of illegal activities such as bribery or fraud as legitimate funds.
Q30. Which of the following is an example of terrorist financing?
a) Disguising the proceeds of illegal activities as legitimate funds
b) Providing funds to individuals or groups to finance terrorist attacks
c) Intentionally deceiving someone for personal or financial gain
d) Hacking into computer systems to steal personal information
Show Answer
Correct Answer: b) Providing funds to individuals or groups to finance terrorist attacks
Explanation: Terrorist financing involves providing funds or financial support to individuals or groups who carry out terrorist activities, including purchasing weapons or funding terrorist attacks.