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HR Quiz Answered
| 1. What is the primary purpose of Anti-Money Laundering (AML) regulations? | |
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| A. To encourage large financial transactions | |
| B. To reduce the amount of tax paid by customers | |
| C. To detect and prevent the use of financial systems for criminal activity | |
| D. To allow banks to charge higher fees | |
| Sorry, that is incorrect. AML regulations are designed to prevent criminals from disguising the origins of illegally obtained money. |
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| 2. Which of the following best describes a “politically exposed person” (PEP)? | |
| A. A customer who has filed a complaint against the bank | |
| B. An individual who holds a prominent public position or has close ties to one | |
| C. Someone who frequently travels abroad for business | |
| D. A bank employee who has access to client data | |
| Correct! PEPs carry a higher risk due to potential access to funds or influence, so enhanced due diligence is required. |
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| 3. When must suspicious activity be reported to the MLRO (Money Laundering Reporting Officer)? | |
| A. As soon as there are reasonable grounds to suspect criminal activity | |
| B. Only after a full internal investigation has concluded | |
| C. At the end of the financial year | |
| D. Once the customer has been informed | |
| Correct! Immediate reporting is crucial — delay can result in a failure to comply with AML regulations. |
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| 4. What is the main reason for performing Know Your Customer (KYC) checks? | |
| A. To assess a customer's credit score | |
| B. To promote the bank’s loyalty scheme | |
| C. To verify the identity and assess the risk profile of the customer | |
| D. To collect customer preferences for marketing purposes | |
| Sorry, that is incorrect. KYC ensures that banks are not unknowingly facilitating criminal activity and helps assess customer risk. |
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| 5. Under GDPR, what is the correct approach to handling a customer’s personal data? | |
| A. Store it indefinitely in case it's needed | |
| B. Share it with third parties for marketing | |
| C. Use it without consent if it's non-sensitive | |
| D. Process it lawfully, transparently, and only for specified purposes | |
| Correct! GDPR mandates that personal data must be handled with care, respecting individuals' privacy rights. |
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| 6. Which of the following would most likely be considered insider trading? | |
| A. Buying shares recommended in the financial press | |
| B. Selling shares based on a colleague’s public blog | |
| C. Trading shares based on confidential company information not available to the public | |
| D. Investing after reading the company's annual report | |
| Correct! Insider trading is illegal and breaches market integrity laws. |
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| 7. What is the best way to protect against phishing attacks? | |
| A. Avoid clicking on suspicious links or attachments and report any suspicious emails | |
| B. Turn off your computer when not in use | |
| C. Only open emails from friends | |
| D. Immediately delete all emails from customers | |
| Correct! Phishing attacks aim to steal sensitive information — vigilance and reporting are key. |
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| 8. What does “Treating Customers Fairly” (TCF) mean in practice? | |
| A. Charging the same interest rate to every customer | |
| B. Providing clear, suitable, and transparent services tailored to individual needs | |
| C. Allowing customers to set their own rules | |
| D. Giving customers unlimited borrowing power | |
| Correct! TCF is a regulatory principle ensuring customers receive fair treatment and good outcomes. |
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| 9. When is it acceptable to ignore a potential conflict of interest? | |
| A. If it only affects a junior client | |
| B. If no one else has noticed it | |
| C. If the affected party hasn’t complained | |
| D. Never — all potential conflicts must be declared and managed appropriately | |
| Correct! Transparency and proper handling of conflicts of interest are vital for maintaining integrity and trust. |
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| 10. Why are regular compliance training sessions important for banking staff? | |
| A. They help improve customer satisfaction scores | |
| B. They ensure staff understand and follow current laws and internal procedures | |
| C. They replace the need for written policies | |
| D. They allow employees to share personal opinions | |
| Correct! Compliance training reduces risk and helps staff respond correctly to regulatory challenges. |
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