Risk Based Approach

Question 1

AMLGAS requires a risk analysis to be conducted in respect of all clients and engagements. Who is permitted to conduct the risk analysis?

Answer 1

The MRLO

Question 2

When designing a risk analysis process, which one of the following is a business not expected to take into account according to AMLGAS?

Answer 2

HMRC

Question 3

A business which has assessed an elevated risk during its risk analysis of a client or engagement may decide to increase its level of CDD. The guidance in AMLGAS states that increasing CDD is an example of?

Answer 3

Mitigating the risk

Question 4

According to the CIOT/ATT supervisory risk assessment for money laundering and terrorist financing, what are high risk products or services for money laundering risk assessment purposes?

Answer 4

The provision of property advice
Payroll services

Question 5

According to the CIOT/ATT supervisory risk assessment for money laundering and terrorist financing, what are low risk products or services for money laundering risk assessment purposes?

Answer 5

Tax planning on junior ISAs
Tax advice on a low premium life insurance policy

Question 6

What level of CDD should you apply to a low risk potential client?

Answer 6

A less onerous level of CDD than you would apply for a higher risk client

Question 7

What is the role of senior management in applying the risk based approach to identifying the money laundering risks applicable to a business?

Answer 7

Senior management must approve the risk analysis if conducted by the MRLO

Question 8

What is the correct explanation for explaining why a risk analysis is important when determining the risk profile of a business?

Answer 8

It allows resources to be targeted and procedures tailored

Question 9

When applying the risk-based approach to its procedures, which of the following is a way in which a business can mitigate elevated risks?

Answer 9

Implementing additional controls around particular service offerings
More frequent periodic CDD reviews

Question 10

What is the possible first step for a business designing its risk analysis?

Answer 10

Consider the MLTF risks faced by each part of the business

Question 11

True or false, a client is high risk where the customer is a legal person that is used as a vehicle for holding personal assets?

Answer 11

True

Question 12

True or false, a client is high risk where a customer is a company whose securities are listed on a regulated market?

Answer 12

False

Question 13

True or false, sole traders are required to have a written risk assessment of practice and written policies and procedures according to the 2017 act?

Answer 13

True