CeMAP 1 AML, Data, Complaints & Redress Practice Questions
AML, Data, Complaints & Redress makes up 5 of every 40 questions on a Tigertest CeMAP 1 practice test. Here are 10 of the 25 questions on it, each with the answer and the reason.
Updated by the Tigertest team. Based on LIBF's FSRE (CeMAP Module 1) syllabus for FRE1 and FRE2. Original questions; case studies written as single questions. Not affiliated with LIBF or Walbrook Institute London.
1. Under the Proceeds of Crime Act 2002, an adviser who tells a client that a suspicious activity report has been made may commit:
- A.Churning
- B.Tipping off
- C.Insider dealing
- D.Market manipulation
Answer: B. Tipping off is disclosing something likely to prejudice an investigation after a report has been made. It is a criminal offence under POCA.
2. Staff who suspect money laundering should report it internally to the:
- A.Firm's external audit partner
- B.Financial Ombudsman Service
- C.Client's own solicitor or accountant
- D.Money Laundering Reporting Officer
Answer: D. Staff report to the MLRO, or nominated officer, who decides whether to make a suspicious activity report to the National Crime Agency.
3. Suspicious activity reports in the UK are made to the:
- A.National Crime Agency
- B.HM Treasury
- C.Financial Conduct Authority
- D.Bank of England
Answer: A. The MLRO reports to the UK Financial Intelligence Unit within the National Crime Agency. The FCA supervises firms' systems but does not receive SARs.
4. Under the Money Laundering Regulations 2017, customer due diligence records must normally be kept for:
- A.6 months after the last contact
- B.10 years after the account was opened
- C.5 years after the relationship ends
- D.1 year after the relationship ends
Answer: C. Firms keep evidence of identity and transaction records for five years after the business relationship ends, unless the law requires otherwise.
5. Enhanced due diligence is required when the customer is:
- A.Buying their first home
- B.Over the state pension age
- C.A politically exposed person
- D.Employed by a regulated bank
Answer: C. Politically exposed persons and customers linked to high-risk third countries need enhanced checks, including the source of wealth and senior management approval.
6. Which money laundering stage involves moving funds through many transactions to hide where they came from?
- A.Layering
- B.Integration
- C.Verification
- D.Placement
Answer: A. Layering separates the money from its criminal source through complex transfers. Integration then brings it back as apparently legitimate wealth.
7. Which is one of the data protection principles under the UK GDPR?
- A.Free sharing with partners
- B.Data maximisation
- C.Unlimited retention
- D.Data minimisation
Answer: D. Firms should collect only the personal data they need for a stated purpose. Other principles include purpose limitation, accuracy and storage limitation.
8. A firm generally has how long to respond to a subject access request?
- A.Six months
- B.One month
- C.Five days
- D.Eight weeks
Answer: B. The UK GDPR requires a response within one month, which can be extended by up to two more months for complex or numerous requests.
9. Information about a client's health is treated under the UK GDPR as:
- A.Commercial data
- B.Special category data
- C.Publicly available data
- D.Anonymised data
Answer: B. Health data is special category data, which needs extra protection and a specific lawful condition to process, as it does in protection advice.
10. A personal data breach likely to risk people's rights must normally be reported to the Information Commission within:
- A.14 days
- B.8 weeks
- C.24 hours
- D.72 hours
Answer: D. Firms must notify the Information Commission (the ICO until 30 September 2026) within 72 hours of becoming aware of a reportable breach, and tell affected people without undue delay if the risk is high.
Practice all 25 aml, data, complaints & redress questions, and the rest of the 200-question bank, in the free CeMAP 1 training sets. Questions you miss come back until you have mastered them.
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