Quiz-1 Awareness of Anti-Money Laundering (AML)

Course Content:

Anti-Money Laundering (AML) refers to laws, policies, and procedures designed to prevent criminals from disguising illegal funds as legitimate. In Myanmar and globally, AML compliance is mandatory for financial institutions and companies dealing with significant financial transactions.

Stages of money laundering:

1.      Placement – introducing illegal money into the system (e.g., cash deposits).

2.      Layering – moving funds through multiple accounts/transactions to hide origin.

3.      Integration – reintroducing “cleaned” money into the economy (e.g., buying real estate).

Key Elements of AML Compliance:

·         KYC (Know Your Customer): verifying customer identity, background, and source of funds.

·         Transaction Monitoring: detecting unusual patterns (e.g., structuring deposits just below thresholds, third-party payments).

·         Reporting: suspicious activity must be reported to AML officers/regulators.

·         Employee Responsibility: staff must stay vigilant and avoid facilitating money laundering.

Why AML matters:

·         Non-compliance can lead to heavy penalties, criminal charges, reputational loss, and even license revocation.

·         Staff are the first line of defense: recognizing red flags and reporting early can protect the company.

2. FAQ

1. Q: What is Money Laundering?
   A: The process of concealing the origins of illegally obtained money by passing it through legitimate businesses or transactions.
2. Q: What are the main stages of money laundering?
   A: Placement, Layering, and Integration.
3. Q: Why is AML compliance important for companies?
   A: To prevent legal penalties, reputational damage, and support global efforts against crime and terrorism financing.
4. Q: What is KYC (Know Your Customer)?
   A: A process to verify customers’ identity, background, and source of funds.
5. Q: What should employees do if they suspect a transaction?
   A: Report immediately to the Compliance Officer or AML Department; never ignore or conceal suspicions.
6. Q: Are staff personally liable for AML failures?
   A: Yes. Employees can face disciplinary and legal consequences if they knowingly facilitate or ignore suspicious activities.
7. Q: What are typical red flags for money laundering?
   A: Structuring deposits, third-party payments, refusal to provide KYC, large cash deals, or unusual offshore transfers.