What is the primary purpose of a risk appetite statement (RAS) in an organization and how should it be effectively communicated and implemented?

• A. An RAS is a formal document meant for regulatory compliance that does not influence day-to-day risk management practices within the organization
• B. An RAS is a detailed plan for managing operational risks and does not cover strategic or financial risks
• C. An RAS is used to outline the risk tolerance limits to external stakeholders and does not need to be communicated within the organization
• D. An RAS defines the amount and type of risk an organization is willing to take to achieve its objectives and should be communicated clearly to all stakeholders with corresponding controls implemented

Which key performance indicators (KPIs) should be considered in the context of ML/TF transaction monitoring? (Select Three.)

• A. Number of alerts by region
• B. Number of transactions by top customers
• C. Number of days required to hire new staff
• D. Number of alerts raised for review or reporting
• E. Average time to review an alert

When deciding on the fuzzy matching threshold for sanctions screening, consideration should be given to:

• A. whether the data to be screened is reliable and verified.
• B. the value of fines for non-compliance.
• C. the experience of the team dealing with potential matches.
• D. the operational burden of dealing with potential matches.

According to the Financial Action Task Force (FATF). potential risk indicators related to money laundering proceeds from environmental crimes include. (Select Two.)

• A. frequent payments from companies in the logging. milling, or waste trade sectors to individuals or beneficiaries unrelated to the legal parson activity or business.
• B. unexplained wealth and cash transfers involving senior officials or politically exposed persons for their family members) with a position of responsibility related to the management or preservation of natural resources.
• C. small cash transfers from cash-Intensive businesses to beneficiaries in areas known as a source of gold mining, illegal logging, and Illegal land clearing.
• D. waste management sector companies based in high-risk jurisdictions with payments or trade invoices tor types of waste aligned with those they are authorized to process.