CMFAS RES 1A Prevention of Financial Crimes (AML/CFT) question: CMI's periodic AML/CFT internal audit

CMFAS RES 1APrevention of Financial Crimes (AML/CFT)

The study guide says a CMI's periodic AML/CFT internal audit should cover all of the following EXCEPT:

A The effectiveness of compliance oversight and quality control, including the parameters and criteria for transaction alerts
B The effectiveness of training of relevant employees, officers and representatives
C The profitability of each business unit's client portfolio
D The adequacy of AML/CFT policies, procedures and controls in identifying and addressing ML/TF risks

Show the answer and explanation

Answer: C. The profitability of each business unit's client portfolio

Section 7.7.3 lists four audit areas: adequacy of policies and controls, effectiveness of staff in implementing them, effectiveness of compliance oversight including alert parameters, and effectiveness of training. Profitability is not an AML/CFT audit scope item.

Common mistake

Alert parameters and criteria are explicitly within audit scope.

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Study note: Prevention of Financial Crimes (AML/CFT)CMFAS RES 1Apractice questions & mock exams

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Original study material mapped to the public CMFAS RES 1A syllabus. Unofficial, not endorsed by MAS or IBF. Verify figures and rules against current guidance before relying on them.