hello everybody Welcome to the video on AML interview questions and answers from career ride anti-money laundering professionals play a significant role in safeguarding the financial system from being used for illegal activities such as fraud and terrorism financing they also help in maintaining the integrity and stability of the system the potential employers for these professionals can be places such as banks credit unions investment and insurance firms regulatory bodies government agencies Consulting and law forms fintech companies cryptocurrency exchanges money transfer services mnc's NOS Etc some of the common positions where these professionals work include AML analyst AML compliance officer AML manager Financial crime investigator kyc analyst risk manager forensic accountant Etc if you also want to make a career in the field of anti-money laundering today's video is espcially for you in this video we'll discuss 11 basic questions that are usually asked during the interviews for EML positions whether you are a fresh graduate or an experienced professional this video is going to be extremely useful to you so if you're really serious about cracking your next AML interview make sure you watch the complete video without skipping any parts of it ready fantastic let's start question number one what is money laundering so if you see it in literal sense the word laundering means to wash something and make it ready for use now what do you wash you wash dirty things so when you wash your dirty money and make it ready to enter the system as clean legitimate money it is called as money laundering so you can see money laundering is an illegal activity where you try to make the money earned through criminal activities appear as legitimate money these illegal activities could be drug trafficking funds from terrorist activities arm smuggling human trafficking Etc financial institutions employ anti-money laundering policies to detect and prevent this activity now the followup question that arises from here is what are the different steps involved in moneya laundering so see typically there are three steps involved in moneya laundering activities the first one is placement where the dirty money is injected into the legitimate Financial system the second one is layering here a series of transactions are conducted and various bookkeeping tricks are applied to hide the true source of money and finally integration where the laundered money is finally dispersed from a legitimate account looking absolutely clean some of these steps may be combined and repeated a few times before the money is fully laundered now see your answer to such basic questions tell the interviewers about your understanding of how the whole process of money Laing works somebody who has good foundational understanding has more chances of spotting such activities quickly and that is what the interviewers are interested in okay let's move on to question number three now what are some common methods used for moneya laundering now see this is again a very basic question and your answer to this question also tells your understanding of how the system works so different types of transactions that are used for money laundering are number one gambling where Casino transactions are used to launder the money the second one is investing in precious metals and stones that can be easily taken to other locations the third one is smurfing where a large sum of illegally obtained cash is divided into multiple small amounts and deposited in many different accounts the fourth one is shell companies many launderers establish inactive companies or corporations especially for this purpose of money laundering such companies exist only on paper they don't have any other contribution in the system the next one is buying real estate and other precious assets all of us know this the next one is cash smuggling where mules or cash Smugglers take the money across borders and deposit it into their foreign accounts and lastly Bank complicity where corrupt bank and financial institutions are involved in money laundering now you see yourself somebody who has this much understanding of the system is definitely a good choice for the interviewers to hire and during the interviews they are actually looking out for such candidates that is why I always say in all my videos it is very very important to display your basic knowledge your foundational knowledge of any topic during the interviews moving on to question number four what is trade-based money laundering now see tbml or trade-based money laundering is a method where the trade transactions are manipulated to make them appear legitimate for example they may over invoice or under invoice the goods misclassify the goods to avoid customs duties and even use false shipping documents also such activities make it difficult for the law enforcement agencies to trace the origin of the funds while the proceeds from illegal activities are able to make a way into the legitimate Financial system okay now our question number five is very very important because it is about something that every AML professional must be aware of if they want to work in this IND industry and the question is what do you know about fatf now FF that stands for financial action task force was established in the year 1989 by the G7 with a purpose to examine and develop measures to combat money laundering it originally included the G7 countries the European commission and eight other countries fatf continuously monitors how criminals and terrorists raise use and move funds it leads Global action to tackle money laundering terrorist and proliferation financing so any professional who is working in the field of AML has to be aware of fatf make sure that you are also prepared to answer this question question number six what is ucic so ucic stands for Unique customer identification code it is a unique identifying code assigned to each customer by the financial institution in India to ensure that all accounts and transactions associated with that customer can be accurately tracked and monitored ucic helps in streamlining kyc efforts and effective implementation of AML and CFT activities also okay now in our question number seven we are going to talk about a Law related to money laundering and this is again a very very important question pay attention the question is which law in India controls was money laundering to answer this question you can say pmla 2002 or prevention of money laundering Act is the primary law to prevent money laundering and deal with any laundered money issues in India it provides to confiscate and seize the property obtained from laundered money the ACT also establishes obligations for banks financial institutions and other intermediaries to perform due diligence and Report any suspicious transactions to FIU that is financial intelligence unit India okay so you can see this is about a law that is related to moneya laundering and that is why any professional working in this domain has to be aware of this okay a very very important question again you must be prepared to answer it okay now we just talked about FIU your next question could be about this now and the question is what is FIU so FIU indd stands for financial intelligence unit India as I just said in the previous question it was established in the year 2004 FIU indd is an independent body under the Department of Revenue Ministry of Finance government of India it is responsible for receiving processing analyzing and disseminating information related to suspected Financial transactions to various enforcement agencies and foreign fius also that is financial intelligence units of other countries also so you see collecting CT that is Cash transaction reports STS that is suspicious transaction reports analyzing them sharing actionable intelligence with foreign fius and other related bodies in India all of these are fiu's responsibilities question number nine what information is typically included in a suspicious activity report what are the consequences if you fail to file a s so to begin with a suspicious activity report is filed by the Banks and financial institutions when they believe that a particular transaction involves illicit money flow the report carries the details of the transaction personal and contact details of both the parties why the bank doubts this transaction Etc if you fail to file a sir the bank and the responsible employee May both get into the trouble legal penalties damage to the reputation loss of banking license lawsuits against the bank and the employee may all be the outcome of not submitting s okay now let's move on to a very interesting and important situational question the question is what would you do if a customer transaction looks suspicious to you as an AML executive now to answer this question you can say as an AML executive if a transaction or customer looks suspicious to to me I would immediately start scrutinizing them by conducting enhanced due diligence while monitoring the activities happening in that account I would quickly begin to refer the guidelines and procedures to raise a suspicious activity report also because time is the most crucial thing in such cases once I'm close to being sure that this could be a potential money laundering transaction I would submit a s with all the relevant details and files for a quick action the law enforcement agencies might need more details I would fully cooperate with them while keeping an eye out for any more suspicious activities or transactions happening in that account if need be in consultation with the compliance officer we might have to freeze the account even it is very important to maintain confidentiality in such cases to avoid any hindrance in the investigation and also the fear of maligning the customer's reputation should the suspicion turn out to be a false positive so you see when interviews hear such mature answers they start getting trust in you but to be able to give such well thought of answers you must think about them well in advance because this type of answers don't occur to anybody on the spot until unless you have a lot of work experience these type of answers require preparation okay that is why I always say in all my videos anticipate the questions and prepare your answers well in advance so that you are able to really impress the interviewers during your interview okay let's move on to our last question question number 11 now and the question is as a manager working in AML what would be your advice to the new joines working on AML kyc so you see when you work in the AML team of any organization your biggest limitation is time if the time passes transaction will be completed and the crime will be done so the most important things for an AML active while working on any case are number one you must know when to stop your research and raise the issue as we discussed time is the most crucial thing here the second one be suspicious don't discount potential matches as false positives you might commit a mistake but Be watchful the third one is attach relevant documents when you raise an issue complete information makes it easier and quicker for the relevant agencies to act the fourth one if you have a feedback from the kyc or QA team pay attention don't ignore it adherence to policies procedures and guidelines is very important here when you work in such Fields like AML and kyc non-adherence can become a big problem for you and your employer both so see when you answer the questions with so much of maturity and thoughtfulness you automatically start emerging as a a good choice for that position and the interviewers do take a note of that some days back we released the videos on kyc interview questions and compliance interview questions also thumbnails are at the moment showing up on your screen and the links are available in the description box below I'm very sure these videos will also be very useful to you do take a look if you found today's video useful do give it a thumbs up and share it with your friends also to stay updated with more such videos subscribe the channel now I'll see you very soon with a new video till then bye-bye and take care