Banking Compliance MCQ Quiz Form
Banking Compliance MCQ Quiz Form — answer each question by selecting one option.
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example@example.com
What is the primary purpose of a customer due diligence (CDD) program?
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To understand and verify customer identity and assess risk
To guarantee that every customer receives credit
To replace ongoing transaction monitoring
To avoid maintaining customer records
When should a bank typically file a suspicious activity report (SAR)?
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When activity meets applicable reporting criteria and suspicion cannot be reasonably resolved
Whenever a customer makes a routine cash deposit
Only after a court convicts the customer of a crime
Only when the customer requests that a report be filed
What is the main objective of sanctions screening?
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To identify potential matches against applicable sanctions lists and follow required controls
To determine a customer's credit score
To verify the customer's preferred branch
To replace customer identity verification
Which approach best supports effective anti-money laundering (AML) transaction monitoring?
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Use risk-based monitoring and investigate alerts according to established procedures
Ignore alerts when a customer has a long relationship with the bank
Review transactions only when a customer complains
Treat every alert as proof of wrongdoing
What should an employee do if they suspect a customer may be a politically exposed person (PEP)?
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Follow the bank’s PEP identification and enhanced due diligence procedures
Automatically refuse all services without review
Disclose the suspicion to the customer before taking any action
Skip screening if the customer was referred by an existing client
Which practice best protects customer information under data privacy requirements?
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Access and share information only for authorized purposes under applicable controls
Send customer information to personal email for convenience
Keep all customer records indefinitely without regard to retention rules
Share records with any colleague who asks
What is the appropriate response to a potential conflict of interest?
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Disclose it promptly and follow the bank’s conflict-of-interest procedures
Proceed without disclosure if no loss has occurred
Ask the affected customer to decide whether it matters
Delete any records that mention the conflict
Why must a bank maintain accurate records of compliance reviews and decisions?
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To support accountability, auditability, and compliance with applicable recordkeeping requirements
To ensure no review is ever subject to independent audit
To replace the need for staff training
To make customer information available without access controls
What is the best way to handle a possible compliance breach observed at work?
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Report it promptly through the appropriate internal channel and preserve relevant information
Wait to see whether someone else reports it
Discuss it publicly with customers and colleagues
Alter records to prevent unnecessary escalation
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