Goldman Sachs Compliance Analyst Interview Questions and Answers

AML process involves identifying, assessing, and monitoring risks associated with money laundering.

• Customer Due Diligence (CDD) to verify customer identity and assess risk

• Transaction Monitoring to detect suspicious activity

• Reporting suspicious activity to authorities

• Ongoing monitoring of customer activity

• Risk-based approach to determine level of due diligence required

• Training employees on AML policies and procedures

KYC stands for Know Your Customer and is a process of verifying the identity of clients. Enhanced Due Diligence is a more thorough investigation of high-risk clients.

• KYC is a regulatory requirement for financial institutions to prevent money laundering and terrorist financing

• It involves collecting and verifying customer information such as name, address, and identification documents

• EDD is a more in-depth investigation ...read more

The three steps in Money Laundering are placement, layering, and integration.

• Placement: The initial stage where illegal funds are introduced into the financial system.

• Layering: The process of moving the funds through a series of complex transactions to obscure the audit trail.

• Integration: The final stage where the laundered funds are reintroduced into the legitimate economy.

Money laundering is the illegal process of making large amounts of money generated by a criminal activity, such as drug trafficking or terrorist funding, appear to have come from a legitimate source.

• Money laundering involves three main stages: placement, layering, and integration.

• Placement is the initial stage where the illegal funds are introduced into the financial system.

• Layering involves moving the funds around to ...read more