Module: General Practice
Q102: The "Travel Rule" (FATF Recommendation 16) and the ISO 20022 standard govern the data that must accompany cross-border wire transfers. Which of the following statements are correct?
For cross-border wire transfers, the "Travel Rule" mandates that the message must contain full details of the Originator (Name, Account Number, Address) and the Beneficiary (Name, Account Number).
The migration to the ISO 20022 standard enhances AML compliance by replacing unstructured text blocks with rich, granular data fields (e.g., separate fields for Street, City, Country), reducing false positives in sanctions screening.
If a receiving bank detects a wire transfer with missing originator information, it must immediately return the funds to the sender and file a Suspicious Transaction Report.
Under the "Risk-Based Approach," a bank should ask the ordering bank for missing information and, if the issue persists, consider restricting or terminating the business relationship rather than automatically rejecting every single incomplete transfer.
The migration to the ISO 20022 standard enhances AML compliance by replacing unstructured text blocks with rich, granular data fields (e.g., separate fields for Street, City, Country), reducing false positives in sanctions screening.
If a receiving bank detects a wire transfer with missing originator information, it must immediately return the funds to the sender and file a Suspicious Transaction Report.
Under the "Risk-Based Approach," a bank should ask the ordering bank for missing information and, if the issue persists, consider restricting or terminating the business relationship rather than automatically rejecting every single incomplete transfer.
✅ Correct Answer: B
The correct answer is Option B. The Travel Rule requires data to move with funds.
ISO 20022 improves data quality.
Missing info requires a risk-based approach (ask/restrict), not immediate auto-return, making statement 3 incorrect.
Tech standards are key for the IIBF AML KYC Exam 2026.
ISO 20022 improves data quality.
Missing info requires a risk-based approach (ask/restrict), not immediate auto-return, making statement 3 incorrect.
Tech standards are key for the IIBF AML KYC Exam 2026.