[Free] CySEC AML Certification mock examination #1

Following requests by many studying towards the AML examination, the SALVUS team has prepared a mock exam. These short set of questions will give you a better idea as to the type and style of questions of the actual exam.

Before proceeding with the examination, you can also visit our previous commentaries;
– AML: compliance culture and reporting obligations. In this commentary we discussed the AML obligations of all stakeholders and their annual training requirements.
– AML: suspicious activity reporting and ML offences. In this commentary we discussed the relevant risk indicators to look for suspicious activity, the reporting process and the personal ML offences on failure to report a suspicious transaction.

SALVUS is launching a series of training seminars to support all individuals preparing for the CySEC Anti-Money Laundering (AML) Certification. Contact us at info@salvusfunds.com for more information and to register in our three-day preparation seminars. CPD certification of 15 units will count towards your CPD requirement for 2020.

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CySEC Anti-Money Laundering (AML) Mock Examination #1

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Which two of the following are considered a suspicious customer identification circumstance?

A. A customer that makes frequent or large transactions and has no record of past or present employment experience

B. A customer is reluctant to reveal details about the business activities

C. Customer experiences high turnover of professionals

D. Customer suggests paying a gratuity to an employee

A ‘tipping-off’ offense upon conviction is subject to

A. imprisonment not exceeding 2 years or to a fine not exceeding €50.000 and/or to both these sentences

B. imprisonment not exceeding 5 years or to a fine not exceeding €50.000 and/or to both these sentences.

C. imprisonment not exceeding 2 years or to a fine not exceeding €5.000 and/or to both these sentences

D. imprisonment not exceeding 5 years or to a fine not exceeding €5.000 and/or to both these sentences

None

The procedure of verification of a customer’s identity is reinforced when

A. A customer is introduced by a reliable staff member.

B. A customer is introduced by any employee of the obliged entity.

C. A customer is introduced by a tied agent.

D. none of the above.

None

Obliged entities shall apply CDD measures for gaming service providers when the transactions are equal or greater than 2,000 EUR

A. in the collection of winnings

B. in the deposit of the bet

C. in both cases above

D. none of the above

None

The three phases of ML are said to be

A. Layering, placement and structuring.

B. Layering, placement and smurfing.

C. Layering, placement and integration.

D. Placement, Integration and infiltration.

None

Which of the following two statements are true?

A. The compliance officer prepares and submits to the Supervisory Authority the monthly prevention statements and the annual report

B. The BoD prepares and submits to the Supervisory Authority the monthly prevention statements and the annual AML report

C. The BoD approves the monthly prevention statements and the annual AML report

D. The BoD approves the annual AML report only

Which two of the following factors may contribute to increasing risk in the securities sector?

A. The geographical reach of the product or service offered, such as those emanating from higher risk jurisdictions

B. Customer is a legal entity predominantly incorporated in the form of bearer shares

C. The customer is also a securities provider, acting as an intermediary in jurisdiction with AML/CFT oversight.

D. Customer requests to transfer funds to a higher risk jurisdiction with reasonable business purpose.

One of the main threats to the securities sector is that it can be used,

A. to launder illicit assets generated outside the securities sector

B. to generate illicit assets from fraudulent activities such as insider trading, market manipulation and securities-related fraud

C. both cases above

D. by non-face-to-face customers. The deep liquidity of the products are attractive to criminals

None

Which one of the below statements is false?

A. The possible abuse of the securities sector for ML lies mostly in the placement stage.

B. The insurance sector is vulnerable to ML, particularly with regards to life insurance products and specifically to the underlying investment element of life insurance policies and annuities products.

C. The main threat to Cyprus securities sector derives from international activities and the potential misuse of the sector by international criminals aiming to launder illicit funds.

D. The higher risk to the banking sector is mainly derived due to access to the banking system by legal entities with unclear economic activity, lack of physical presence apart from the legal place of business and the registration in jurisdictions with limited tax transparency, no employees etc.

None

Which two of the below statements are true for the Advisory Body of Financial Sanctions (ABFS)?

A. Examines requests for the release of funds maintained in accounts of credit institutions.

B. Examines requests that fall within the financial sector.

C. The approval or rejection to a final decision to be taken by the Minister of Finance.

D. The approval or rejection to a final decision to be taken collectively or by majority by the Ministers of Finance, Foreign Affairs, Energy, Trade, Industry and Tourism.

Please provide an email to send you your results and your name, once you have answered all the questions.

Time's up

We remain at your disposal should you have any questions on the mock-up questions. Contact us at info@salvusfunds.com