November 2021

Question 1

Give an example of a failure to take advantage of an opportunity?

Answer 1

Kodak and digital cameras

Question 2

What is a principal risk?

Answer 2

Large scale risks to achievement of an organisation’s strategy. Objectives which may threaten business model, future performance, solvency and liquidity.

Question 3

When did AML and CTF come into force?

Answer 3

2017

Question 4

Name 10 Anti-AML and CTF controls

Answer 4

1. policies and procedures
2. ML Reporting Officer / roles
3. Reporting to authorities
4. Due diligence (Know Your Customer - KYC)
5. Monitoring transactions
6. Records of KYC/monitoring
7. Reporting to MLRO, then regulator
8. Dual control and segregation of duties
9. Training
10. Compliance reviews and audit

Question 5

What needs to be included in Suspicious Activity Report?

Answer 5

1. Type and suspicion
2. Date and location
3. Suspect or victim
4. Personal details (person engaged)
5. Account details where necessary

Question 6

Name examples of regulatory reporting (8)

Answer 6

• info on organisation/Directors
• staff salaries and tax paid
• financial accounts
• business plans
• governance and internal control arrangements
• major risks and how managed
• pollution and H&S incidents
• major loss events / control failures

Question 7

Name three risks associated with regulatory reporting

Answer 7

1. missed deadlines
2. incomplete
3. errors

Question 8

Name the four-part cycle of risk management

Answer 8

control exposure -> identify risks -> assess exposure -> monitor exposure -> control exposure

Question 9

What is the international standard on ERM?

Answer 9

31000:2018 - standard on ERM
- principles of RM
- core elements on effect of RM framework
- RM process
- importance of leadership