Sanctioned Countries & Risk Countries
- Which countries are currently under sanctions by the U.S., EU, or UN?
- Answer: Countries like North Korea, Iran, Sudan, Russia, Ukraine, Serbia, Iraq are under sanctions. It's crucial for financial institutions to monitor and block transactions with entities from these countries.
- What are the consequences for a financial institution if they fail to comply with sanctions?
- Answer: Non-compliance can result in heavy fines, reputational damage, and even legal action. Financial institutions must implement robust sanctions screening processes.
- How do you ensure transactions are not conducted with individuals or entities from sanctioned countries?
- Answer: By utilizing sanction screening tools and databases like OFAC and the EU sanctions list, transactions are automatically checked, and any matches are flagged for further review.
Fraud Detection
- What is an account takeover, and how can it be detected?
- Answer: Account takeover occurs when a fraudster gains unauthorized access to a user's account.
It can be detected through unusual login behavior, changes in account details, and irregular activity patterns.
- What are the differences between phishing and account takeover?
- Answer: Phishing involves tricking the user into providing personal information, while an account takeover occurs when the attacker uses stolen information to access and control an account.
- What steps would you take if you detect a suspicious transaction related to fraud?
- Answer: Immediate reporting to the compliance team, flagging the transaction, conducting an investigation, and filing a SAR (Suspicious Activity Report) if necessary.
AML (Anti-Money Laundering) & KYC (Know Your Customer)
- What is the importance of KYC in financial institutions?
- Answer: KYC helps verify the identity of clients, ensuring compliance with legal regulations and reducing the risk of fraud, money laundering, and terrorist financing.
- What is the di