What are your roles and responsibilities? (Pick any one as per your profile in the resume and your ease of explaining the interviewer)
For Sanction/ PEP Screening – Responsible for screening the customer name against the Sanctions and PEP watchlist provided by the global sanctioning bodies (UN; EU; OFAC, HMT, Interpol and etc). I am primarily involved in processing the alerts as false positive for customer who are identified to be mismatch with match party details, and escalate for further review to next level if customer and match party details are matching with each other. Time taken to review each alert is 10 mins, and case management tool used is Actimize.
For KYC Review – Responsible for reviewing and verify customer KYC information on new account documents, and perform appropriate client profiling by understanding the customer and the associated parties (like UBO and key signatories (CEO; CFO and COO)), and documenting the findings along with performing negative media screening to make sure there is no relevant AML related negative news. Follow-up with the customer, if additional document is required for completion of KYC review. Time taken to review each KYC profile is 90 mins, and case management tool used is Fenergo
For Transaction Monitoring - Responsible for reviewing transactions to identify any Money Laundering or Terrorist Financing red flags and rapidly dispositioning the alerts/cases with no risk identified during investigation, or escalating alerts/cases which requires further review by the next level team. I am responsible for identifying the transaction pattern and mitigate ML and TF risk with clear and concise narrative writing on the findings during investigation. Time taken to review each KYC profile is 90 mins, and case management tool used is Actimize
What is Money Laundering and three stages of Money Laundering?
Money Laundering is a process of converting illegal funds to legal funds. The three stages of money laundering are 1- Placement (Placing the money in the financial system); 2- Layering (creating complex web of transactions to lose banking trail) and 3- Integration (in this stage, money can be introduced back to the economy).
What in AML and its impact to the financial institution?
AML (Anti Money Laundering) is a program to fight the financial crime like Money laundering and terrorist financing. An effective AML program, helps the financial institutions to avoid the criminal abusing the financial system.
What is structuring?
Structuring is a process of breaking down large amount of funds to small portions below the threshold amount to avoid filing of regulatory reporting. (for example – In USA, anyone who transacts for $10000 or more in cash should file a CTR
Who are Gatekeepers?
Gatekeepers in ML (Money Laundering) refers to professions such as Lawyers, Notaries, Accountants and Auditors, as they are considered to have experience and expertise in managing the illegal funds, and hence acting as gatekeepers by helping the money launderers.
What is Correspondent Banking and risk faced by correspondent banking?
Corresponding Banking also known as clearing house, facilitates cross-border payments. Three risks faced by correspondent banking are – 1) Correspondent bank do not have first-hand information of the end customers; 2) Geographical risk (as payments are usually cross border); 3) Amounts involved are high.
What is PTA?
PTA (Payable Through Account) is a sub account of correspondent bank provided to the respondent bank, who in turn provide these PTA account to their customers to directly avail facilities of correspondent bank.
What is a PEP & RCA and what is the risk with PEP?
PEP is Politically exposed person, who holds or has held a prominent political position is consider as PEP. RCA – Relatives and close associates, those who are closely associated with PEP (for e.g., Parent, Spouse, Children and close friends). There are two risk factors with PEP – 1) PEPs have access to huge amount of public funds; and 2) PEPs have the power to influence high level decisions.
What is a MSB and risks with MSB?
MSB known as Money Services Business facilitates services like currency exchange, money transmitting, and provides monetary instruments like cashier’s check, prepaid cards and money orders. Risk that MSB’s pose, Banks are not aware of the end customer, and MSB also deal in cash, which is a risk to the bank, as source of funds is not available in cash deals.
Difference between Private/ Public and Government companies?
Public company is a company that is listed in the well-known stock exchange and can be traded freely in the stock exchange, and ownership remains with the general public.
Private limited company is not listed on a stock exchange and it is held privately by the members of the company.
Government company is one where at least 51% of the company is held by the Central and/or a state government
What is a Trust and parties involved in the Trust. ?
A trust is a fiduciary relationship in which a trustor (also known as Settlor) gives another party, known as the (Trustee), the right to hold title to property or assets for the benefit of a third party (beneficiary).
What is Terrorist Financing?
Terrorist Financial is financing the terrorist groups for spreading terrorism.
What is the difference between Money Laundering and Terrorist Financing?
Two major differences of ML & TF are
1 – In Money laundering, the source of funds is always illegal; and in Terrorist financing sources of funds are both legal and illegal.
2 – In Money laundering the objective is to make dirty money to clean, and in Terrorist financing the objective is to spread terrorism.
What is FATF?
FATF is Financial Action Task Force, combats Money Laundering and Terrorist financing by providing- 1) Guidance and Recommendation to the member countries; 2) Monitor the effective implementation of recommendations; and 3) Effective assessment. There are 40 recommendations provided by FATF to fight ML & TF.
What is FIU and who is FIU of US and UK?
FIU is the Financial Intelligence Unit which is responsible for 1) Collection of information (through SAR/ STR submitted by financial institutions); 2) Analysing the information and 3) Dissemination or distribution of information to the relevant regulator and law enforcement. FIU of US is FinCEN (Financial Crime Enforcement Network) and FIU of UK is NCA (National Crime Agency)