Question 1. What Is Money Laundering?
Money Laundering is the method by way of which, criminals try to make the proceeds of crime appear legitimate without a apparent hyperlinks to their crook origins. This is achieved by way of 3 strategies:
Placement – Placing of the proceeds of crime
Layering – Hiding of the proceeds from their criminal beginning by using ‘layers’ of transactions
Integration – Creating a valid reason for the proceeds
Question 2. Who Needs To Perform Anti-money Laundering Checks?
Solicitors, accountants, tax advisors, insolvency practitioners, monetary establishments, credit establishments, estate retailers, chartered surveyors, believe/provider companies, gaming groups and high price dealers with the potential for a business dating worth over 15,000 Euros, consisting of automobile dealers and jewellers.
Financial Accounting Interview Questions
Question 3. Why Do I Need To Perform Anti-money Laundering Checks?
The Anti-Money Laundering guidelines are governed by means of four Acts: The Proceeds of Crime Act, The Serious Organised Crime and Police Act, The Terrorist Act and the Money Laundering Regulations. . Failure to document suspicious pastime can carry a crook sentence and cause considerable fines from the applicable regulatory frame.
Question 4. I Have Dealt With My Clients For Many Years , Do I Still Need To Carry Out Customer Due Diligence?
You want to preserve CDD updated for all your customers. You may have sufficient documentary ID details to your files but if there has been any next exchange to their occasions or threat profile, you ought to replace your CDD. It is suggested to check clients’ CDD on a ordinary foundation.
Question 5. Who Enforces The Anti-cash Laundering Regulations?
The AML rules are enforced by using a variety of regulatory bodies. Guidelines are set by means of the JMLSG (Joint Money Laundering Steering Group) and enforced by using the FCA/PRA (Financial Conduct Authority/ Prudential Regulation Authority), the SRA (Solicitors Regulation Authority in England), OFT (Office of Fair Trading), HMRC (HM Revenue & Customs), ICAEW (Institute of Chartered Accountants in England & Wales, plus different Accountancy our bodies), RICS (Royal Institute of Chartered Surveyors) and more.
Auditing Interview Questions
Question 6. What Is Electronic Verification?
In order to save you fraud and money laundering it's far vital to affirm people sporting out economic transactions. Previously documentary proof become relied on to affirm an character. These won't usually be to be had and that they also can be without problems forged or altered therefore electronic verification gives more protection and reduces hazard in opposition to money laundering and fraud.
Electronic verification gets rid of the want for the client to be gift, this protects time and enables aid customer dating building. The threat of cash laundering is reduced as numerous information resources are called upon to affirm the patron in preference to just relying on documentary proof.
Question 7. If I Collect Passports And Driving Licences, Why Do I Need To Check Anything Else?
EV can check a much broader variety of records, for this reason offering a more thorough knowledge of your client (KYC – Know Your Customer). In addition, it may additionally enable you to check different information units together with PEPS and Sanctions lists, which is beneficial and specific through the 3rd European Money Laundering Directive.
With fraudulent documentation at the upward push, there may be a want to refocus efforts on figuring out them. Electronic verification is designed to get rid of the threat of receiving probably fraudulent files; therefore you can have a greater stage of self assurance in their authenticity. Various assessments are achieved on the files to confirm as a whole lot as viable, therefore lowering the risk of ID fraud.
Risk Management Interview Questions
Question eight. Online Systems Are Too Expensive, What If I Cannot Afford It?
There are regularly hidden costs related to taking paper files, which aren't constantly immediately recognisable. For example, if dealing with a patron at distance, the posting through of important files by way of recorded delivery on the way to ensure they do not wander away carries a fee, which is frequently extra than the cost of an electronic search. If the files are then lost, there's then the cost of replacing the documents on your capacity consumer. This can also be more time-ingesting as a procedure, however via performing a brief digital search, should this then allow for more searches to be done and in flip, increase the range of customers taken onboard?
Question 9. Why Are You Allowing Me To See Sensitive Information?
The statistics held in digital structures is consented to be used in those structures. For an AML take a look at, the Full Electoral Roll is authorized for this reason and this is included inside the Representation of the People Act (2002). When a Credit Reference Agency (CRA) utilises economic information in an AML check, it does now not show any financial information, apart from the records necessary to ID a person.
Finance Interview Questions
Question 10. What Are Politically Exposed Persons, Specially Designated Nationals And Financial Sanctions And Why Do I Need To Check Them?
It is suggested by means of the 3rd European Money Laundering Directive to have a system in place to test PEPs, SDNs and the HMT Financial Sanctions. A PEP is a Politically Exposed Person, and is a person who holds a outstanding public position, or an character linked to them. An SDN is a Specially Designated National , on a listing which specifies that US Citizens are not permitted to behavior commercial enterprise with them. The HM Treasury Financial Sanctions list specifies individuals with whom it's far prohibited to switch or make price range to be had to.
Question 11. What Are Money Laundering And Financial Terrorism?
Money laundering refers to conversion of money illegally obtained to make it appear as if it originated from a valid source. Money laundering is being hired by means of launderers international to conceal crook hobby related to it together with drugs /arms trafficking, terrorism and extortion.
Financial Terrorism manner monetary aid to, in any shape of terrorism or to individuals who inspire, plan or interact in terrorism.
Money launderers ship illicit funds through prison channels with a view to hide their criminal beginning even as people who finance terrorism switch finances that can be felony or illicit in unique in this type of way as to hide their source and closing use, that's to assist Financial Terrorism.
Credit Analyst Interview Questions
Question 12. What Is Kyc?
KYC is an acronym for “Know your Customer” a term used for Customer identity procedure. It involves making reasonable efforts to determine, the true identity and beneficial possession of debts, source of finances, the character of client’s business, reasonableness of operations in the account on the subject of the customer’s enterprise, and many others which in turn allows the banks to manipulate their dangers prudently.
The goal of the KYC suggestions is to save you banks getting used, deliberately or accidentally via criminal elements for cash laundering.
Financial Accounting Interview Questions
Question 13. What Is Kyc Policy?
As in line with RBI pointers issued vide their round dated 29/11/2004, all banks are required to formulate a KYC Policy with the approval in their respective forums. The KYC Policy includes the subsequent four key factors.
Customer Acceptance Policy
Customer Identification Procedures
Monitoring of Transactions
Question 14. Who Is A Customer?
For the purpose of KYC policy a ‘consumer” may be defined as:
A individual or entity that continues an account and/or has a business dating with the bank;
One on whose behalf the account is maintained (i.E. The beneficial proprietor);
Beneficiaries of transactions carried out by way of expert intermediaries, including Stock Brokers, Chartered Accountants, Solicitors and so on as approved beneath the law, and
Any man or woman or entity connected with a economic transaction that may pose sizable reputational or other risks to the bank, say a wire switch or difficulty of excessive fee demand draft as a single transaction.
Question 15. What Is A Customer Acceptance Policy?
Customer Acceptance Policy refers to the general suggestions followed through banks in permitting customers to open bills with them. Generally the tips stipulate that no accounts shall be opened in nameless or fictitious names or whilst the identification of the purchaser suits with any character with recognised crook history or banned entities. Similarly bills have to not be opened whilst the bank is unable to confirm the identity and/or reap files required as per the financial institution’s policy.
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Question sixteen. What Is The Customer Identification Procedure?
Customer identification manner identifying the purchaser and verifying his/her identity through dependable and impartial files, facts and facts. Banks would need to satisfy to the in a position government that due diligence was discovered according with the requirements of current laws and guidelines.
Question 17. When Does Kyc Apply?
KYC could be completed for the following however isn't always limited to:
Opening a brand new account.(deposit/ borrowal )
Opening a next account in which documents as according to modern KYC standards no longer submitted even as commencing the initial account.
Opening a locker facility in which those files are not to be had with the bank for all locker facility holders.
When the financial institution feels it is vital to attain extra information from existing clients based on the behavior of the account.
After periodic durations based on commands obtained from RBI.
When there are adjustments to signatories, mandate holders, useful proprietors, etc.
Credit Card Officer Interview Questions
Question 18. What Are The Aml/cft Supervisors Looking For?
The AML/CFT supervisors are focusing on whether or not the reporting entity has the suitable and affordable danger assessment, and an AML/CFT programme that reflects and controls those dangers. The AML/CFT supervisors take a threat-based totally technique to supervision - choosing from the supervision and enforcement tools to be had to us. Supervision will do not forget the nature of the business and the risks that every reporting entity is managing. Read our Bulletin article or speech for greater facts at the Reserve Bank’s technique to AML/CFT supervision.
Auditing Interview Questions
Question 19. What Are Peps?
“Politically-Exposed Persons” (PEPs) are those who, by using distinctive feature in their function in public life, may be prone to corruption. The New Zealand law presently limits this concept to overseas PEPs, and does no longer consist of home (New Zealand-based) PEPs. Reporting entities are required to offer specific attention to the risks concerned with PEPs and so have to:
have processes in region to determine whether or not a client, or a useful proprietor of a consumer, is a PEP or a close associate of a PEP;
gain senior management acclaim for establishing or preserving commercial enterprise relationships with PEPs;
take affordable measures to set up the source of wealth and supply of finances of PEPs; and
conduct stronger, ongoing monitoring of the business dating.
Question 20. What Is Ongoing Customer Due Diligence?
Ongoing Customer Due Diligence approach regularly reviewing client information and having structures to conduct account monitoring. This is required for all clients, along with current customers.
KYC Interview Questions