100+ Free CME-2A Practice Questions

International Regulatory Environment

Why financial markets are regulated, regulatory objectives such as market confidence and consumer protection, principles-based versus rules-based regulation, and international standard-setters including IOSCO, the Basel Committee and FATF. Practice covers the purpose and limits of regulation and how international standards shape national regimes.

Compliance Monitoring Function

The role, independence and reporting lines of the compliance function, risk-based compliance monitoring programmes, advising the business, handling breaches and complaints, managing the relationship with the regulator, record keeping and management information. Practice covers how a compliance team is structured and what it does day to day.

Financial Crime Risk Management

The three stages of money laundering, terrorist financing, the risk-based approach, customer due diligence and KYC, enhanced due diligence, suspicious activity reporting, sanctions, the offences of insider dealing and market manipulation, and bribery and corruption. Practice covers AML controls and the firm's duty to detect and report financial crime.

Ethics, Integrity and Honesty

Treating customers fairly, identifying and managing conflicts of interest, conduct risk, ethical decision-making frameworks, and the personal and corporate consequences of ethical failures. Practice covers how integrity supports compliance beyond simply following rules.

Governance, Risk Management and Compliance

Corporate governance principles, the responsibilities of the board and senior management, the three lines of defence model, enterprise risk management and how governance, risk and compliance reinforce one another. Practice covers accountability and the control environment in a regulated firm.