RBC RBC - Online Assessment Risk Management and Compliance Questions and Answers

Question 1

What is the primary goal of anti-money laundering (AML) compliance at a bank like RBC?

Accepted Answer

To detect, prevent, and report financial transactions that may be linked to criminal activity

Answer

To maximize loan interest revenue for the bank

Answer

To ensure clients maintain minimum account balances

Answer

To reduce the number of new account applications reviewed

Question 2

Under FINTRAC regulations, Canadian banks must file a Suspicious Transaction Report (STR) when:

Accepted Answer

There are reasonable grounds to suspect a transaction is related to money laundering or terrorist financing

Answer

A client withdraws more than $500 in cash

Answer

A client transfers funds internationally for the first time

Answer

An account remains inactive for more than 30 days

Question 3

What does 'credit risk' specifically refer to in banking?

Accepted Answer

The risk that a borrower will fail to meet their contractual repayment obligations

Answer

The risk that interest rates will move against the bank's position

Answer

The risk of operational system failures disrupting payment processing

Answer

The risk of currency fluctuations affecting foreign transactions

Question 4

A bank employee notices that a long-standing client suddenly begins making frequent large cash deposits inconsistent with their known business. What should the employee do FIRST?

Accepted Answer

Document the unusual activity and escalate to the compliance team for review

Answer

Close the client's account immediately without explanation

Answer

Ask the client directly if they are engaged in illegal activity

Answer

Ignore the activity since the client has a long positive history

Question 5

What is 'operational risk' in a banking context?

Accepted Answer

The risk of loss resulting from inadequate internal processes, people, systems, or external events

Answer

The risk of losses from fluctuating interest rates

Answer

The risk that clients will switch to a competing bank

Answer

The risk that regulatory capital requirements will increase

Question 6

Why is client identity verification mandatory when opening a new bank account in Canada?

Accepted Answer

It is a regulatory requirement under FINTRAC to confirm identity and prevent fraud and money laundering

Answer

It is required to set up online banking credentials

Answer

It allows the bank to market additional products to the client

Answer

It is only required for clients depositing over $10,000