For which of the following reasons is it essential that financial institutions establish and maintain robust anti-money laundering and countering financing of terrorism (AML/CFT), anti-fraud and investment suitability frameworks?

Which of the following measures should financial institutions take in order to ensure effective implementation of robust AML/CFT, anti-fraud and investment suitability frameworks?

In trying to foster a strong and enduring control culture and risk awareness throughout financial institutions, which of the following group of individuals are charged with setting the right tone at the top?

I. Front office roles should take the lead in setting the right tone at the top.
II. Senior management should take the lead in setting the right tone at the top.
III. Customer service roles should take the lead in setting the right tone at the top.
IV. The Board should take the lead in setting the right tone at the top.

Appropriate policies, procedures, and controls should be put in place by financial institutions in order to prevent fraud in vulnerable areas. Which of the following is an example of these vulnerable areas?

I. Inactive/dormant accounts
II. Third-party account transfers
III. Hold-mail
IV. Current accounts

For Singapore to remain as a trusted and clean financial centre, which of the following are financial institutions likely to do?

I. Financial institutions must ensure that their controls commensurate with nature, and the complexity of their business.
II. Financial institutions must ensure that their controls commensurate with the size of their business.
III. Financial institutions must ensure that their controls are effective.
IV. Financial institutions must ensure that their controls are ineffective and don’t commensurate with the size, nature, and complexity of their business.

During the advisory and sales process, whose responsibility is it to highlight the downside risks of the investments to their customers?

I. It is the responsibility of the relationship managers to highlight the downside risks of the investments to their customers.
II. It is the responsibility of the senior management to highlight the downside risks of the investments to their customers.
III. It is the responsibility of the marketing department to highlight the downside risks of the investments to their customers.
IV. It is the responsibility of the sales department to highlight the downside risks of the investments to their customers.

Whose duty is it to instill good selling practices in relationship managers to allow for their proper discharge of the duty of care by them and to ensure that customers’ goals and constraints are met and adhered to respectively?

During the advisory and sales process, which of the following information is the relationship manager likely to highlight to the customers about their investments?

I. The product terms and pricing.
II. The product benefits.
III. The downside risks of the investments.
IV. The profit of the product to the company.

A majority of financial institutions need the product documents reviewed and approved to ensure that the information contained in those documents is clear, adequate and not misleading. Which of the following departments are charged with doing this?

I. The marketing and sales department.
II. The legal and compliance department.
III. The customer service and support department.
IV. The product committee.

Financial institutions should devote sufficient attention and resources to put in place an appropriate product risk classification framework and ensure that assessments are properly performed. Which of the following is likely to be a result of inadequate product risk rating methodology and process?

I. Proper highlighting of downside risks of the investments to customers.
II. An understatement of risk for certain financial products.
III. Inappropriate product recommendations by relationship managers.
IV. Misselling of products by relationship managers.

Which of the following is essential for financial institutions to detect and report suspicious transactions in a timely and effective manner, and take appropriate steps to mitigate the associated ML/TF risks?

Transaction monitoring is a key control in financial institutions’ anti-money laundering and countering the financing of terrorism policies and procedures. In an organization, whose responsibility is it to conduct transaction monitoring?

Which of the following is the next line of action of a financial institution who notices transactions that exhibit reasonable grounds for suspicion of money laundering and countering the financing of terrorism?

Transaction monitoring is a key control in financial institutions’ anti-money laundering and countering the financing of terrorism (AML/CFT) policies and procedures. Which of the following is one of the stages of the transaction monitoring process chain?

I. Quality-based calibration.
II. Resolution and enhancement.
III. Robust implementation of the transaction monitoring process.
IV. Knowing and understanding the customer.

An effective transaction monitoring system enables financial institutions to detect and assess whether customers’ transactions pose suspicion when considered against their respective backgrounds and profiles. Which of the following is an element that makes up an effective transaction monitoring system?

I. Poorly designed operation of the financial institution.
II. A well-calibrated framework.
III. Meaningful integration.
IV. Robust risk awareness in the staff of financial institutions.

Financial institutions comprise of three lines of defense. Which of the following is not one of these lines of defense?

I. Independent freelance crowdsourcing.
II. Financial institutions’ frontline staff.
III. Financial institutions’ compliance and support functions.
IV. Financial institutions’ internship support.

Which of the following statements is the responsibility of the line of financial institutions’ frontline staff?

I. Actively oversee the management of the financial institution.
II. Alert their organizations to any unusual or suspicious customer activities in the first instance.
III. Establish a good understanding of their customers’ activities and behaviors.
IV. Test and safeguard the robustness of financial institutions’ transaction monitoring performance.

Which of the following statements best describes the role and responsibility of the line of financial institutions’ compliance and support functions?

Which of the following statements best describes the role and responsibility of the line of financial institutions’ independent audit functions?

Which of the following is the fundamental building block to ensuring investment suitability?

I. Investment choice
II. Customer profiling
III. Customer service
IV. Relationship management

Customer profiling typically involves customers completing a risk assessment questionnaire, which allows the financial institutions to understand and assess certain things about the customer. Which of the following are financial institutions trying to understand about the customer through customer profiling?

I. The customer’s volatility tolerance.
II. The customers’ investment objectives.
III. The customer’s favorite sport.
IV. The customer’s financial needs or constraints.

How frequently do financial institutions review the risk profiles with their customers to ensure that the risk profiles are up-to-date and remain relevant?

What statement best describes the term “private banking”?

Where the legitimacy of the customer’s or beneficial owner’s source of wealth cannot be reasonably ascertained, which of these are financial institutions expected to do?

Many financial institutions review their product risk rating methodology to ensure that it remains relevant. How often do most financial institutions review their product risk rating methodology?

In order to facilitate the tracing of funds passing through different financial institutions, which of the following should all outgoing payment instructions contain?

Financial institutions in the private banking industry typically use financial intermediaries as a source of customer acquisition. Which of the following should financial institutions do prior to establishing a business relationship with a financial intermediary?

Given the role of the financial intermediaries as a customer source, what could be the consequence of inadequate due diligence on financial intermediaries?

I. Financial institutions could be exposed to liquidity risks.
II. Financial institutions could be exposed to volatility risks.
III. Financial institutions could be exposed to legal risks.
IV. Financial institutions could be exposed to reputational risks.

As part of the due diligence process, financial institutions should conduct background searches, including name and adverse news screening on all known parties connected to the intermediary. Which of these is/are likely to be known parties connected to the intermediary?

I. The unauthorized representatives of the financial intermediary.
II. The community members of the staff of the financial intermediary.
III. The directors of the financial intermediary.
IV. The authorized signatories of the financial intermediary.

Financial institutions have in place processes to ensure that suspicious transaction reports (STRs) are filed expeditiously. Within how many days of a case being flagged as suspicious, would suspicious transaction reports (STRs) be filed?