Module: General Practice
Q84: Which of the following statements correctly characterize the risks and red flags associated with Money Laundering in the banking sector?
"Operational Risk" refers to the risk of direct or indirect loss resulting from inadequate internal processes, people, or systems failing to detect money laundering.
Correspondent Banking is considered "High Risk" because the correspondent bank processes transactions for the respondent bank's customers without having a direct relationship with them.
A customer consistently depositing cash just below the mandatory reporting threshold is a behavioral red flag indicating potential "Structuring."
A salaried employee receiving a fixed monthly transfer from a known employer is considered a high-risk red flag requiring Enhanced Due Diligence.
Correspondent Banking is considered "High Risk" because the correspondent bank processes transactions for the respondent bank's customers without having a direct relationship with them.
A customer consistently depositing cash just below the mandatory reporting threshold is a behavioral red flag indicating potential "Structuring."
A salaried employee receiving a fixed monthly transfer from a known employer is considered a high-risk red flag requiring Enhanced Due Diligence.
✅ Correct Answer: B
The correct answer is Option B. Operational risk, high-risk correspondent banking, and structuring are all correctly identified.
Salaried employees are low risk, making statement 4 incorrect.
Risk profiling is central to the IIBF AML KYC Exam 2026.
Salaried employees are low risk, making statement 4 incorrect.
Risk profiling is central to the IIBF AML KYC Exam 2026.