PracticeVideosBlogFlashcardsEspañol
All Practice Exams

100+ Free CySEC AML Practice Questions

Pass your CySEC AML Compliance Officer Certification exam on the first try — instant access, no signup required.

✓ No registration✓ No credit card✓ No hidden fees✓ Start practicing immediately
~60% Pass Rate
100+ Questions
100% Free

Loading practice questions...

Same family resources

Explore More CySEC Certification

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

CySEC Advanced Certification

Practice Questions

CySEC Basic Certification

Practice Questions
2026 Statistics

Key Facts: CySEC AML Exam

40

Exam Questions

CySEC

60 mins

Exam Time

CySEC

70%

Passing Mark

CySEC

€300

Exam Fee

CySEC

10 hrs

Annual CPD Requirements

CySEC AML Register Rules

14 yrs

Max Prison Sentence (Knowing)

Prevention and Suppression Law

The CySEC AML Compliance Officer exam consists of 40 questions in 60 minutes and costs €300. It is a mandatory credential for AML Compliance Officers at CIFs and CASPs in Cyprus, covering the local AML Law, EU directives, MOKAS reporting, KYC, and CASP regulations.

Sample CySEC AML Practice Questions

Try these sample questions to test your CySEC AML exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which regulatory authority is directly responsible for supervising Cyprus Investment Firms (CIFs) and Crypto-Asset Service Providers (CASPs) for compliance with anti-money laundering and counter-terrorist financing (AML/CFT) laws?
A.Central Bank of Cyprus (CBC)
B.Cyprus Securities and Exchange Commission (CySEC)
C.Unit for Combating Money Laundering (MOKAS)
D.Department of Registrar of Companies and Intellectual Property
Explanation: The Cyprus Securities and Exchange Commission (CySEC) is the designated supervisory authority responsible for monitoring compliance with the AML/CFT Law for Cyprus Investment Firms (CIFs), CASPs, Alternative Investment Funds (AIFs), and UCITS Management Companies. The Central Bank of Cyprus is the supervisor for banking and credit institutions. MOKAS is the Cyprus Financial Intelligence Unit (FIU) responsible for analyzing reports, not active supervision.
2To be appointed and act as a designated Anti-Money Laundering Compliance Officer (AMLCO) at a CySEC-regulated firm, an individual must fulfill which of the following requirements?
A.Hold a master's degree in criminal justice or corporate law
B.Successfully pass the CySEC AML exam and be registered in the CySEC AML Compliance Officers Register
C.Gain at least 10 years of prior experience working inside MOKAS or a local law enforcement agency
D.Acquire a separate license from the Cyprus Bar Association
Explanation: Under CySEC rules, individuals appointed as AMLCOs at regulated firms must successfully pass the official CySEC AML Certification examination. Once they pass and are officially appointed by their firm, they are registered in the public AML Compliance Officers Register. No specific degree or legal license from the Bar Association is mandated, and 10 years of law enforcement experience is not a requirement.
3What is the primary objective of the CySEC AML Compliance Officer Certification?
A.To license compliance officers to practice criminal law in Cyprus courts
B.To ensure that compliance professionals possess the necessary theoretical and practical knowledge of AML/CFT rules, directives, and laws
C.To register compliance officers as special agents under the direct command of the Cyprus police force
D.To authorize certified individuals to perform commercial company audits for tax purposes
Explanation: The primary objective of the CySEC AML Compliance Officer Certification is to verify that professionals working in key compliance roles possess adequate knowledge of local laws, European Directives, and international standards. This ensures they can design and execute competent AML/CFT programs within their institutions. It does not license individuals to practice law, perform commercial tax audits, or work as police agents.
4Which of the following powers does CySEC possess when supervising regulated entities for AML compliance?
A.The power to arrest employees suspect of money laundering during routine inspections
B.The power to carry out on-site inspections, request books and documents, and impose administrative fines
C.The power to draft and pass primary penal legislation without parliamentary approval
D.The power to freeze all bank accounts in Cyprus without a court order
Explanation: CySEC has the supervisory power to conduct on-site and off-site inspections, request any books, records, or internal documents, and impose administrative fines for compliance breaches. CySEC cannot execute arrests, which is a police function, nor can it draft primary legislation (handled by the Parliament) or freeze accounts nationwide without court orders or MOKAS directives.
5To maintain their certification and active status in the CySEC AML Compliance Officers Register, certified individuals must complete how many Continuing Professional Development (CPD) hours annually?
A.5 hours of general finance training
B.10 hours of specific AML/CFT training
C.20 hours of regulatory compliance training
D.40 hours of legal studies training
Explanation: Certified AML Compliance Officers in Cyprus are required to complete at least 10 hours of Continuing Professional Development (CPD) training focusing specifically on AML/CFT issues by the end of each calendar year. They must also pay the renewal fee to maintain active registration. General finance or generic legal training does not meet this specialized requirement.
6Which stage of the money laundering process involves introducing illegally obtained cash or assets into the formal financial system for the first time?
A.Integration
B.Placement
C.Layering
D.Structuring
Explanation: Placement is the initial stage of money laundering, where cash or assets derived from illegal activities are introduced into the financial system. This is the stage where the money launderer is most vulnerable to detection because large cash deposits are highly visible. Layering involves separating the proceeds from their source, and integration brings the clean money back into the economy.
7A money launderer executes a series of complex electronic funds transfers across several offshore jurisdictions and shell companies to hide the audit trail of illicit funds. This activity belongs to which stage of money laundering?
A.Placement
B.Layering
C.Integration
D.Justification
Explanation: Layering involves the creation of complex layers of financial transactions designed to disguise the source of the funds and obscure the audit trail. Typical layering methods include transferring funds across multiple countries, using shell companies, or buying and selling diverse financial instruments. Placement is the entry of cash, and integration is the final reintroduction of clean funds.
8Which of the following transactions represents the 'Integration' stage of money laundering?
A.Splitting a €25,000 cash deposit into three smaller deposits at different bank branches
B.Wiring funds through five different international shell companies within 24 hours
C.Purchasing a luxury commercial property in Nicosia using funds from an offshore bank account containing laundered money
D.Exchanging a suitcase of low-denomination cash for high-denomination bank notes at a currency exchange
Explanation: Integration is the final stage where laundered money is merged into the legitimate economy. Purchasing high-value assets, such as real estate or businesses, using layered funds makes the money appear to be derived from legitimate investments. Splitting deposits and exchanging banknotes represent placement techniques, while wiring funds through shell companies represents layering.
9How does terrorist financing differ primarily from money laundering regarding the source of funds?
A.Terrorist financing only utilizes funds derived from high-level political corruption
B.Money laundering only involves legal cash, whereas terrorist financing only involves illicit assets
C.Terrorist financing can involve funds derived from both legitimate and illegitimate sources, whereas money laundering only involves illicit proceeds
D.There is no difference; both strictly require the initial funds to be generated by a predicate criminal offense
Explanation: A key distinction between money laundering and terrorist financing is the source of funds. Money laundering strictly involves hiding the origin of funds derived from predicate criminal offenses. In contrast, terrorist financing can use clean, legitimate money (such as charitable donations, personal salaries, or business revenues) as well as criminal proceeds, provided the funds are intended to support terrorist activities or organizations.
10If a CySEC-regulated firm identifies that a prospective client is listed on the European Union's consolidated list of persons and entities subject to financial sanctions, the firm must take which action?
A.Execute the client's transactions and report them within 30 days
B.Reject the onboarding, freeze any related assets immediately, and notify MOKAS and CySEC
C.Charge the client a high compliance surcharge and apply Simplified Due Diligence
D.Inform the client that they must obtain a license from a local Cyprus bank to open the account
Explanation: Sanctions compliance requires immediate action. If a firm matches a client with the EU sanctions list, it must refuse to establish a business relationship, freeze any funds or assets associated with the person immediately without delay, and report the match to MOKAS and its supervisor. The firm must not execute transactions, apply simplified measures, or tip off the client by suggesting local licensing.

About the CySEC AML Exam

The CySEC AML Compliance Officer Certification is a legal requirement for individuals seeking appointment as Anti-Money Laundering Compliance Officers (AMLCOs) in CySEC-regulated firms. The exam validates comprehensive knowledge of Cyprus AML/CFT Law, EU Directives, MOKAS functions, Risk-Based Approach implementation, KYC/CDD, transaction monitoring, tipping-off restrictions, and specific rules for Crypto Asset Service Providers (CASPs).

Assessment

40 multiple-choice questions, with potential for multiple correct answers per question

Time Limit

60 minutes

Passing Score

70% (28 out of 40 correct)

Exam Fee

€300 (Cyprus Securities and Exchange Commission (CySEC))

CySEC AML Exam Content Outline

20%

Understanding Money Laundering, Terrorist Financing, and Sanctions

ML/TF definitions, stages, and vulnerabilities under Cyprus National Risk Assessment.

20%

Legal and Regulatory Requirements

Cyprus AML/CFT Law, roles of CySEC and MOKAS, EU Directives, and international standards (FATF, MONEYVAL).

15%

The AML Compliance Culture

Internal policies, duties of Board of Directors and the AML Compliance Officer, internal audit, and tipping-off rules.

15%

Assessing and Managing Risks

Implementing the Risk-Based Approach (RBA) and analyzing customer, country, and product risk factors.

20%

Customer Due Diligence (KYC / CDD)

Simplified, standard, and enhanced CDD, identifying UBOs (>25% rule), and managing PEP relationships.

10%

Crypto Asset Service Providers (CASPs)

Registration categories, AML compliance, and FATF Travel Rule requirements for CASPs.

How to Pass the CySEC AML Exam

What You Need to Know

  • Passing score: 70% (28 out of 40 correct)
  • Assessment: 40 multiple-choice questions, with potential for multiple correct answers per question
  • Time limit: 60 minutes
  • Exam fee: €300

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

CySEC AML Study Tips from Top Performers

1Memorize the legal penalties under the Cyprus AML Law: 14 years for knowing money laundering and 5 years for negligent failure/non-compliance.
2Understand the functions of MOKAS (FIU) and CySEC (supervisors), and ensure you know the difference between reporting a suspicion and tipping-off.
3Thoroughly review the UBO thresholds (ownership or voting control of more than 25% or 25% + 1 share).
4Pay attention to the mandatory triggers for Enhanced Due Diligence (EDD), such as PEPs, cross-border relationships, and high-risk third countries.
5Study the FATF Travel Rule for virtual asset transfers and the three classes of CASP registrations with CySEC.

Frequently Asked Questions

What is the CySEC AML Compliance Officer Certification?

It is a professional certification offered by the Cyprus Securities and Exchange Commission (CySEC) that verifies a candidate's knowledge of the legal and regulatory framework for combating money laundering and terrorist financing in Cyprus and the European Union. Passing this exam is a prerequisite to being registered in the CySEC AML Compliance Officers Register and holding the position of an AMLCO at a regulated firm.

What is the structure of the CySEC AML exam?

The exam consists of 40 multiple-choice questions to be completed within 60 minutes. The passing score is 70%, which means you must answer at least 28 questions correctly. Note that some questions in the official exam may require selecting multiple correct answers, making it a rigorous test of legal precision.

How much does the exam cost and how do I register?

The official registration fee charged by CySEC is €300, payable directly through their portal. Examinations are typically held at dedicated centers in Cyprus, and scheduling is managed directly via the CySEC portal during designated registration windows.

How do I maintain my CySEC AML certification?

Certified AML Compliance Officers must pay an annual register maintenance fee of €80 to CySEC and complete at least 10 Continuing Professional Development (CPD) hours focusing on anti-money laundering and combating terrorist financing topics by the end of each calendar year.