Compliance Frameworks and the Three Lines of Defense in Financial Crime Prevention — Flashcards

This quiz is about how compliance actually sits inside a company: who owns what, who checks whom, and how AML / KYC / sanctions fit into the bigger risk picture.

What you should know for this topic

• The basic idea behind the three lines of defense model
• What the first line (business), second line (risk/compliance), and third line (audit) actually do
• How policies, procedures, and controls are supposed to connect
• The difference between monitoring and independent testing
• Typical gaps and confusion that regulators point out in weak frameworks

Use this quiz to see if you can explain your organisation’s setup to a new joiner in plain language.