A casino needs to hire an auditor (or sensitive financial operations where the employee will have access to large amounts of cash The interviewer needs to be sure that this employee is scrupulously honest lo protect the company.
Which is the MOST effective technique to vet this prospective employee?

• A. Review your internal records to determine if the prospective employee has any record of excessive gambling
• B. Collect documentation to confirm the prospective employee s educational history
• C. Conduct a background check on the prospective employee
• D. Require Ihe prospective employee to provide personal references

During an organizational overview of financial crime controls, Ms. Patel, the compliance analyst, discovers that certain customer due diligence procedures are inconsistently applied across different branches of the organization. What should Ms. Patel recommend to address this issue?

• A. Assign responsibility for customer due diligence to individual branch managers.
• B. Disregard the inconsistencies as they may not significantly impact compliance.
• C. Conduct a comprehensive review of existing customer due diligence procedures.
• D. Implement additional layers of bureaucracy to ensure uniformity.

You work for a bank that is subject to U.S. sanctions overseen by the Office of Foreign Assets Control (OFAC). In the past your institution has had difficulty keeping the Specially Designated Nationals (SDN) lists up-to-date.
Which is the recommended course of action when dealing with transactions from a sanctioned country through your bank?

• A. Ignore the SDN lists because they appear to be out-of-date again
• B. Open the account and then contact the OFAC about blocking transactions
• C. Submit blocking and reject reports to the OFAC in writing
• D. Call Ihe OFAC to submit the blocking and reject reports

During a risk assessment of its trade finance operations, XYZ Bank identifies a high volume of transactions involving shell companies with obscure ownership structures. What is the most appropriate action for XYZ Bank to take in response to this finding?

• A. Ignore the issue as long as the transactions are compliant with regulatory requirements.
• B. Immediately terminate all trade finance operations involving shell companies.
• C. Conduct enhanced due diligence on transactions involving shell companies.
• D. Seek approval from senior management to continue trade finance operations.

Your company acquires new mortgage loans through a network of independent brokers and you have experienced losses attributed to one of your brokers You suspect that the broker did not act alone You are revisiting your institution's policies and procedures to effectively mitigate the risks of collusion.
Which specific task would NOT be effective in mitigating the risk of collusion?

• A. Restrict the use ot property appraisers to those who have been approved by your institution
• B. Ensure that your brokers are subjected to rigorous on-boarding standards
• C. Have the mortgagor provide documentary evidence of employment and income
• D. Provide mortgage underwriters and administrative staff with training on how to recognize suspicious transactions