Finastra Assessment Financial Crime and Compliance Questions and Answers

Question 1

A bank's transaction monitoring system flags a series of cash deposits into a single account.
Each deposit is for $9,500 and occurs on three consecutive days at different branches.
This pattern is most indicative of which type of financial crime?

Accepted Answer

Structuring

Answer

Insider trading

Answer

Asset misappropriation

Answer

Tax evasion

Question 2

Which of the following is the primary responsibility of a Money Laundering Reporting Officer (MLRO) within a financial institution?

Accepted Answer

Receiving and assessing internal suspicious activity reports and filing SARs with authorities.

Answer

Approving high-value corporate loans.

Answer

Developing marketing strategies for new financial products.

Answer

Conducting daily audits of the institution's financial statements.

Question 3

A financial institution is onboarding a new corporate client. The client is a privately held company operating in a high-risk jurisdiction known for corruption. Which level of due diligence should be applied?

Accepted Answer

Enhanced Due Diligence (EDD)

Answer

Simplified Due Diligence (SDD)

Answer

Customer Identification Program (CIP) only

Answer

Standard Due Diligence (SDD)

Question 4

The Financial Action Task Force (FATF) sets international standards for combating money laundering and terrorist financing. What is the foundational principle of the FATF Recommendations?

Accepted Answer

A risk-based approach (RBA) tailored to national circumstances.

Answer

A prescriptive, one-size-fits-all regulatory framework.

Answer

A focus exclusively on criminal prosecution after a crime has occurred.

Answer

Mandatory quarterly reporting of all international transactions to the FATF.

Question 5

A compliance officer at a bank is using a screening tool to check a new customer's name against various sanctions lists, including the OFAC SDN list. This process is a critical component of:

Accepted Answer

Sanctions compliance and KYC procedures

Answer

Credit risk assessment

Answer

Market abuse surveillance

Answer

The bank's annual profitability audit

Question 6

Under the Bank Secrecy Act (BSA) in the United States, when must a financial institution file a Suspicious Activity Report (SAR)?

Accepted Answer

No later than 30 calendar days after the date of initial detection of facts that may constitute a basis for filing.

Answer

Within 10 business days of any transaction over $5,000.

Answer

Only when a customer is officially charged with a crime.

Answer

Annually for all accounts that have had more than 100 transactions.

A bank's transaction monitoring system flags a series of cash deposits into a single account.Each deposit is for $9,500 and occurs on three consecutive days at different branches.This pattern is most indicative of which type of financial crime?

A bank's transaction monitoring system flags a series of cash deposits into a single account.
Each deposit is for $9,500 and occurs on three consecutive days at different branches.
This pattern is most indicative of which type of financial crime?