SOD THEORY 1 COMPREHENSIVE STUDY GUIDE 2026 FULL QUESTIONS AND SOLUTIONS GRADED A+

SOD THEORY 1 COMPREHENSIVE STUDY
GUIDE 2026 FULL QUESTIONS AND
SOLUTIONS GRADED A+

>> Due Diligence
Answer: Careful investigation before transaction


>> Background Check
Answer: Verification of person's history


>> Reference Check
Answer: Contacting previous employers


>> Credit Check
Answer: Reviewing creditworthiness


>> Know Your Customer (KYC)
Answer: Verifying customer identity


>> Anti-Money Laundering (AML)
Answer: Preventing illegal fund transfers


>> Sanctions Screening
Answer: Checking against prohibited parties


>> Politically Exposed Person (PEP)
Answer: High-risk public figure

, >> Enhanced Due Diligence
Answer: Extra scrutiny for high-risk customers


>> Customer Due Diligence
Answer: Standard verification procedures


>> Ongoing Monitoring
Answer: Continuous customer activity review


>> Transaction Monitoring
Answer: Watching for suspicious activity


>> Suspicious Activity Report (SAR)
Answer: Filing about potential crime


>> Currency Transaction Report (CTR)
Answer: Report of large cash transactions


>> OFAC
Answer: Office of Foreign Assets Control


>> FinCEN
Answer: Financial Crimes Enforcement Network


>> Bank Secrecy Act
Answer: Law requiring financial recordkeeping


>> USA PATRIOT Act
Answer: Anti-terrorism financing law