Free Practice Questions for Korea AML Specialist (TPAC)

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Key Facts: Korea AML Specialist (TPAC) Exam

100 items

Official examination question count (120 minutes)

Korea Institute of Finance (한국금융연수원 / KBI)

600 / 1,000

Passing score: 60% overall with 40% per-subject floor (과락)

KBI Examination Regulations

KRW 55,000

Official examination registration fee

KBI Qualification Portal (kbi.or.kr), verified 2026-09-20

KRW 10M

Mandatory Currency Transaction Report (CTR) cash threshold

Act on Reporting and Using Specified Financial Transaction Information

KRW 1M

Virtual asset Travel Rule reporting threshold under 특정금융정보법

KoFIU VASP Regulatory Enforcement Guidelines

자금세탁방지 업무능력 검정시험 (TPAC) is South Korea's benchmark Anti-Money Laundering certification administered by KBI (한국금융연수원). The official exam comprises 100 four-option multiple-choice questions (120 minutes, 1,000 points total) divided evenly between AML Regime (50%) and AML Practice (50%), with a passing score of 600 points (60%) and a 40% per-subject floor. The official registration fee is KRW 55,000. OpenExamPrep provides an independent English-language MCQ study adaptation and is not an official KBI test.

Sample Korea AML Specialist (TPAC) Practice Questions

Try these sample questions to review concepts for the Korea AML Specialist (TPAC) exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which international body established the Financial Action Task Force (FATF / 자금세탁방지기구) in 1989, and what was its original core mandate?

A.The G7 Summit in Paris to examine and develop measures to combat money laundering arising from illicit drug trafficking

B.The United Nations General Assembly to supervise commercial bank solvency and international trade embargoes

C.The International Monetary Fund (IMF) to stabilize global foreign exchange reserve balances

D.The Basel Committee on Banking Supervision to eliminate cross-border tax evasion

Explanation: The Financial Action Task Force (FATF / 자금세탁방지기구) was established by the 1989 G7 Summit in Paris in response to escalating international concerns over drug trafficking. Its initial mandate was to examine money laundering techniques and trends, review actions already taken at the national or international level, and set out measures needed to combat money laundering, which resulted in the 1990 Forty Recommendations.

2Under FATF Recommendation 1, what is the core operational principle of the Risk-Based Approach (RBA / 위험기반접근법)?

A.Applying identical, uniform due diligence measures to all financial transactions regardless of perceived exposure

B.Identifying, assessing, and understanding money laundering and terrorist financing risks and allocating resources proportionally to mitigate them

C.Completely prohibiting financial relationships with any legal entity incorporated in a developing economy

D.Delegating all transaction verification and suspicious activity reporting to external government auditing agencies

Explanation: FATF Recommendation 1 establishes the Risk-Based Approach (RBA / 위험기반접근법) as the cornerstone of modern AML/CFT regimes. Countries and financial institutions are required to identify, assess, and understand their specific money laundering and terrorist financing (ML/TF) risks, ensuring that higher risks receive enhanced mitigation measures while lower risks permit simplified measures.

3According to FATF Recommendation 10, in which of the following circumstances is a financial institution NOT strictly required to conduct Customer Due Diligence (CDD / 고객확인의무)?

A.When establishing a new ongoing business relationship with a customer

B.When there is a suspicion of money laundering or terrorist financing, regardless of transaction amount or exemptions

C.When carrying out an occasional cash transaction that falls strictly below designated statutory thresholds and exhibits no suspicion of illicit activity

D.When the institution has doubts about the veracity or adequacy of previously obtained customer identification data

Explanation: Under FATF Recommendation 10, occasional transactions below designated monetary thresholds (such as USD/EUR 15,000 for standard transactions or USD/EUR 1,000 for wire transfers) do not automatically trigger full Customer Due Diligence, provided there is no existing ongoing relationship and no suspicion of ML/TF. The other three triggers—establishing relationships, suspicion of illicit activity, and data veracity doubts—strictly mandate CDD.

4Which of the following account management practices is explicitly and strictly prohibited under FATF Recommendation 10?

A.Operating numbered accounts, provided the institution maintains verified customer records in confidential master files

B.Offering pooled omnibus accounts to licensed domestic securities broker-dealers

C.Opening specialized corporate trust accounts for overseas publicly listed entities

D.Maintaining anonymous accounts (익명계좌) or accounts in fictitious names (가명계좌)

Explanation: FATF Recommendation 10 categorically states that financial institutions should not keep anonymous accounts (익명계좌) or accounts in obviously fictitious names (가명계좌). This global rule ensures every financial ledger can be linked to an identifiable natural or legal person.

5Under FATF Recommendation 12 regarding Politically Exposed Persons (PEPs / 정치적 주요인물), what due diligence standard applies to Foreign PEPs (외국 PEP)?

A.Financial institutions are strictly required to implement Enhanced Due Diligence (EDD / 강화된 고객확인), obtain senior management approval, and establish the source of wealth and funds

B.Financial institutions may apply simplified due diligence if the foreign official holds an ambassadorial post

C.Financial institutions are prohibited from onboarding foreign public figures due to sovereign immunity conflicts

D.Due diligence is limited to checking whether the individual appears on Interpol red notices

Explanation: Under FATF Recommendation 12, foreign PEPs, their family members, and close associates must automatically undergo Enhanced Due Diligence (EDD / 강화된 고객확인). Financial institutions must have appropriate risk management systems to determine if a customer or beneficial owner is a foreign PEP, obtain senior management approval before establishing or continuing the business relationship, take reasonable measures to establish the source of wealth and source of funds, and conduct enhanced ongoing monitoring.

6FATF Recommendation 13 establishes strict rules for cross-border correspondent banking (환거래계좌 / 코레스 거래). Which institutional relationship is unconditionally prohibited?

A.Establishing correspondent relationships with foreign commercial banks operating under consolidated supervisory oversight

B.Entering into or continuing a correspondent banking relationship with a shell bank (페이퍼뱅크), or establishing relationships with respondents that permit their accounts to be used by shell banks

C.Maintaining reciprocal payment clearing arrangements denominated in major reserve currencies

D.Processing documentary trade collection letters of credit issued by member banks of the Wolfsberg Group

Explanation: Under FATF Recommendation 13, financial institutions should refuse to enter into, or continue, a correspondent banking relationship with shell banks (institutions that have no physical presence in the jurisdiction where they are incorporated and licensed, and are unaffiliated with a regulated financial group). Furthermore, institutions must satisfy themselves that respondent institutions do not permit their accounts to be used by shell banks (nested shell accounts).

7What is the primary requirement introduced under FATF Recommendation 15 regarding Virtual Asset Service Providers (VASPs / 가상자산사업자)?

A.VASPs are exempted from customer identity verification provided all transactions are settled via zero-knowledge cryptography

B.VASPs must operate entirely under central bank clearing houses with identical capital ratios to Tier-1 deposit institutions

C.VASPs must be subject to licensing or registration, comprehensive AML/CFT supervision, and the obligation to transmit originator and beneficiary information (the Travel Rule)

D.VASPs are prohibited from facilitating transactions involving cross-border digital asset counterparties

Explanation: FATF Recommendation 15 (updated in 2019) mandates that jurisdictions must require VASPs to be licensed or registered, be subjected to effective systems for monitoring and ensuring compliance with national AML/CFT requirements, and apply the Travel Rule (트래블룰), which requires obtaining and transmitting accurate originator and beneficiary information with virtual asset transfers.

8Under FATF Recommendation 16 (Wire Transfers / 전신송금), what specific data elements must the ordering financial institution ensure accompany a cross-border wire transfer?

A.The originator's employment contract and certified credit bureau score

B.Only the beneficiary's tax registration certificate and clearing bank SWIFT BIC code

C.Only the ordering institution's internal audit approval number and branch transit code

D.The originator's name, account number (or unique transaction reference), and address (or national identity number/customer ID/date and place of birth), alongside beneficiary name and account number

Explanation: FATF Recommendation 16 requires ordering financial institutions to ensure that cross-border wire transfers contain full originator information (name, account number or unique transaction reference, and physical address, national identity number, customer ID number, or date and place of birth) as well as the beneficiary's name and account number. This forms the basis of global Travel Rule requirements.

9What is the core threshold standard for filing a Suspicious Transaction Report (STR / 의심거래보고) under FATF Recommendation 20?

A.If a financial institution suspects or has reasonable grounds to suspect that funds are proceeds of a criminal activity, or are related to terrorist financing, it should report promptly to the Financial Intelligence Unit (FIU), with no minimum monetary threshold

B.An STR is required only when an illicit transaction exceeds the minimum value of USD 100,000

C.An STR must be held until law enforcement authorities issue a formal subpoena requesting disclosure

D.An STR should be filed only if the customer verbally confirms that the funds derive from unregistered commercial activity

Explanation: FATF Recommendation 20 states that if a financial institution suspects or has reasonable grounds to suspect that funds are the proceeds of a criminal activity or are related to terrorist financing, it should be required by law to report its suspicions promptly to the FIU. Critically, there is no monetary threshold for filing an STR.

10What dual protections and prohibitions are embodied in FATF Recommendation 21 regarding Tipping-Off and Confidentiality (누설금지 및 비밀보장)?

A.Institutions must notify the customer within 24 hours of filing an STR, but receive complete tax deduction benefits for compliance costs

B.Institutions and their employees are protected from criminal and civil liability for reporting in good faith, and are strictly prohibited from disclosing that an STR has been submitted to the FIU

C.Employees are granted immunity only if the reported suspect is convicted in a court of final appeal, but may inform colleagues across branches

D.Institutions must publish weekly anonymized lists of reported accounts in public newspapers to warn other commercial lenders

Explanation: FATF Recommendation 21 embodies two essential pillars: Safe Harbor (면책 규정), which protects financial institutions, their directors, and employees from criminal and civil liability for breach of confidentiality restrictions when reporting suspicions in good faith to the FIU; and Prohibition of Tipping-Off (누설금지), which strictly prohibits reporting institutions and staff from disclosing the fact that an STR or related information is being reported or has been submitted to the FIU.

About the Korea AML Specialist (TPAC) Exam

The Korea AML Specialist TPAC (자금세탁방지 업무능력 검정시험) is South Korea's benchmark professional Anti-Money Laundering certification, administered by the Korea Institute of Finance (한국금융연수원 / KBI). It evaluates practical and statutory proficiency required of AML compliance officers, transaction monitoring analysts, and risk professionals operating under the Act on Reporting and Using Specified Financial Transaction Information (특정금융정보법). The examination comprises 100 four-option multiple-choice questions administered over 120 minutes, scored out of 1,000 points. Candidates must score at least 600 points overall (60%) while clearing the mandatory 40% per-subject floor (과락 기준). OpenExamPrep provides an independent 100-question English study adaptation featuring standard Korean legal terminology and realistic scenario analysis.

Exam sponsor: Korea Institute of Finance (한국금융연수원 / KBI). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

The examination is divided into two primary parts: Part 1 covers AML Regime (자금세탁방지 제도, 50 items) testing global AML standards (20 items) and domestic regulatory frameworks (30 items); Part 2 covers AML Practice (자금세탁방지 실무, 50 items) testing typologies (10 items), risk assessment (5 items), CDD/EDD/beneficial ownership (15 items), and STR/CTR reporting/monitoring (20 items). Total exam duration is 120 minutes.

Time Limit

120 minutes

Passing Score

600 / 1,000 points (60%)

Exam / Certification Fees

KRW 66,000

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Korea Institute of Finance (한국금융연수원 / KBI) TPAC Portal · Source checked 2026-09-20Official examination portal for TPAC (자금세탁방지 업무능력 검정시험) registration, testing schedule, fees, and syllabus.
Korea Financial Intelligence Unit (KoFIU / 금융정보분석원) · Source checked 2026-09-20Official regulatory body publishing AML/CFT guidelines, STR/CTR filing standards, and statistical analysis under 특정금융정보법.
Financial Action Task Force (FATF) · Source checked 2026-09-20International standards setter for combating money laundering and terrorist financing (FATF 40 Recommendations).
Korea Ministry of Government Legislation - 특정금융정보법 · Source checked 2026-09-20Current statutory text of the Act on Reporting and Using Specified Financial Transaction Information.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

50%

AML Regime (자금세탁방지 제도)

Global AML Standards (20 items): FATF 40 Recommendations (RBA, CDD, PEPs, wire transfer/travel rule, STR filing, tipping-off prohibition, DNFBP standards, beneficial ownership transparency, mutual evaluations, black/grey lists); Basel Committee on Banking Supervision (BCBS) sound AML management and consolidated group oversight; Wolfsberg Group principles on correspondent banking, private banking, and CBDDQ; Egmont Group FIU principles and secure information exchange. Domestic AML Regime (30 items): Act on Reporting and Using Specified Financial Transaction Information (특정금융정보법); Act on Regulation and Punishment of Criminal Proceeds Concealment (범죄수익은닉규제법); Act on Prohibition of Financing for Offences of Public Intimidation (공중협박자금조달금지법); KoFIU mandate, intelligence gathering, strategic analysis, and law enforcement dissemination; Risk-Based Approach (RBA) statutory framework and FSS supervisory inspection powers.

50%

AML Practice (자금세탁방지 실무)

AML Risks & Typologies (10 items): Trade-based money laundering (over/under-invoicing, phantom shipments, L/C abuse); virtual asset / crypto travel rule under 특정금융정보법 (KRW 1M threshold, VASP registration, real-name accounts); structuring/smurfing (분할거래); nominee accounts (차명계좌 / 대포통장) and voice phishing mule operations; shell companies and opaque legal structures. Risk Assessment (5 items): Enterprise-Wide Risk Assessment (EWRA) measuring inherent risk, control effectiveness, and residual risk; customer risk profiling models; product, channel, and geographic risk factors. Customer Due Diligence (15 items): CDD triggers, customer identification and verification, Enhanced Due Diligence (EDD) triggers and senior management approvals, multi-tier Beneficial Ownership identification (실소유자 확인 25% rule, dominant influence, senior management), Politically Exposed Persons (foreign vs. domestic PEPs), non-face-to-face KYC 4-step verification, periodic review cycles, and CDD failure procedures. Reporting & Monitoring (20 items): Currency Transaction Reports (CTR with KRW 10M cash threshold, 30-day filing, exemptions); Suspicious Transaction Reports (STR 'reasonable grounds' standard, prompt filing without delay, anti-tipping off rule, safe harbor immunity); Transaction Monitoring Systems (TMS/FDS rule tuning and alert disposition); AML internal control framework, Compliance Officer duties, and annual staff training.

Preparing for the Korea AML Specialist (TPAC) Exam

What You Need to Know

Passing score: 600 / 1,000 points (60%)
Assessment: The examination is divided into two primary parts: Part 1 covers AML Regime (자금세탁방지 제도, 50 items) testing global AML standards (20 items) and domestic regulatory frameworks (30 items); Part 2 covers AML Practice (자금세탁방지 실무, 50 items) testing typologies (10 items), risk assessment (5 items), CDD/EDD/beneficial ownership (15 items), and STR/CTR reporting/monitoring (20 items). Total exam duration is 120 minutes.
Time limit: 120 minutes
Exam / certification fees: KRW 66,000 Official sources

Using Our Practice Resources

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Korea AML Specialist (TPAC): Suggested Study Strategy

1Master the distinction between the objective KRW 10M cash threshold for CTR (고액현금거래보고) and the subjective 'reasonable grounds' standard for STR (의심거래보고) which carries no minimum monetary threshold.

2Memorize the three-tier cascade for beneficial ownership (실소유자 확인) under 특정금융정보법 Article 5-2: 1st tier (25%+ equity ownership), 2nd tier (dominant practical control), and 3rd tier (senior managing official / 대표자).

3Understand the strict anti-tipping off prohibition (누설금지) under 특정금융정보법 Article 4: informing a client or third party that an STR has been or will be submitted to KoFIU carries severe criminal penalties.

4Review the FATF 40 Recommendations and their Korean statutory counterparts, specifically Recommendation 1 (Risk-Based Approach), Recommendation 10 (CDD triggers), Recommendation 12 (PEPs), Recommendation 16 (Wire transfers/Travel Rule), and Recommendation 20 (STR).

5Pay close attention to CTR aggregation and exemption rules: CTR aggregates all physical cash deposits or cash withdrawals per customer across branches within one business day, but exempts inter-bank settlements, government entities, and utility bill cash payments.

Frequently Asked Questions

What is the Korea AML Specialist TPAC examination?

The Korea AML Specialist TPAC (자금세탁방지 업무능력 검정시험) is a professional certification administered by the Korea Institute of Finance (한국금융연수원 / KBI). It evaluates technical competence in anti-money laundering and counter-terrorist financing (AML/CFT) laws, international standards, and compliance practice in South Korea. This study platform provides an independent English-language MCQ practice adaptation to help learners master the syllabus concepts, and is not an official KBI test.

How is the official TPAC examination structured and scored?

The official KBI examination consists of 100 four-option multiple-choice questions administered over a single 120-minute session. It is scored out of 1,000 points. The blueprint is divided into two 50-item sections: Part 1: AML Regime (자금세탁방지 제도) and Part 2: AML Practice (자금세탁방지 실무). To pass, candidates must achieve an overall score of 600 points (60%) or higher, while scoring at least 40% in each individual subject part to clear the mandatory minimum floor (과락 기준).

What is the difference between an STR and a CTR under Korean law?

Under the Act on Reporting and Using Specified Financial Transaction Information (특정금융정보법), a Suspicious Transaction Report (의심거래보고, STR) is required when there are reasonable grounds to suspect that financial assets involve criminal proceeds or terrorist financing, regardless of the transaction amount, and must be submitted to KoFIU promptly without delay. In contrast, a Currency Transaction Report (고액현금거래보고, CTR) is an objective, mandatory report triggered whenever physical cash deposits or withdrawals by the same customer equal or exceed KRW 10,000,000 in a single business day, filed electronically within 30 days.

How does Korean law determine the Beneficial Owner (실소유자) of a corporate customer?

Under Article 5-2 of 특정금융정보법, financial institutions identify the beneficial owner through a sequential multi-tier cascade: Tier 1 identifies any natural person who holds 25% or more of voting shares or equity. If no individual meets this threshold, Tier 2 identifies the natural person who exercises practical control or dominant influence over the entity (such as appointing majority directors). If no individual is identified under Tier 2, Tier 3 identifies the senior managing official (representative director / 대표자).

What are the AML requirements for Virtual Asset Service Providers (VASPs) in South Korea?

VASPs (가상자산사업자) operating in South Korea are fully subject to 특정금융정보법. They must obtain Information Security Management System (ISMS) certification, establish real-name verified deposit and withdrawal bank accounts (실명확인 입출금계정), register with KoFIU, and implement the Travel Rule (트래블룰) by transmitting originator and beneficiary identities for crypto transfers valued at KRW 1,000,000 or more.