1.Whatdoesdesigningacountryasbeingof“primemoneylaunderingconcern”allowtheU.S. governmenttodo?
A.ObtaintransactionalinformationfromU.S.-ownedsubsidiarybankslocatedoutsidetheU.S. BClosesomeorallcorrespondentorpayable-throughaccounts
CEnsuretheinclusionofthatcountryontoFATF’sNon-CooperativeCountryandTerritorylist
DEnsuretheinclusionofthatcountryintotheofficeofForeignAssetControlcountrysanctionsprograms
Answer:C
2Anemployeehearsacolleagueonthetelephonewithacustomergivingadviceonhowtoensurethata suspicioustransactionreportwillnotbefiledasaresultofafuturetransaction
Whatactionshouldtheemployeetake?
A.Reporttheconversationtothelocalpolice
BReporttheconversationtothecomplianceofficer
C.Tellthecolleaguethatitisagainstpolicytogivesuchadvice
DIgnorethesituationbecausethecolleagueistherelationshipmanagerforthatcustomer
Answer:C
3.AbranchmanagerforasmallcommunitybankhasanewcustomerwhodepositsforEUR50,000 checksintooneaccountShortlythereafter,thecustomergoestoanotherbranchandaskstotransferall butEUR1,500tothreeaccountsindifferentforeignjurisdictions
Whichsuspiciousactivityshouldbethefocusofthesuspicioustransactionreport?
AThecustomeropenedtheaccountwithfourlargechecks
BThecustomergoestoadifferentbranchtomakethistransaction
CThecustomertransfersalmostallofthefundsoutoftheaccount
DThecustomeraskstotransferfundstoaccountsinthreedifferentforeignjurisdictions
Answer:D
4Howcanafinancialinstitutionverifythenatureandpurposeofabusinessanditslegitimacy?
A.Byreviewingacopyofthecorporation’slatestauditedreportsandaccounts
BByundertakingacompanysearchorothercommercialinquirestoseethattheinstitutionhasnotbeen, orisnotintheprocessofbeingdissolvedofterminated
CByreviewingthecompany’swebsite
D.Byusinganindependentinformationverificationprocess,suchasbyaccessingpublicandprivate databases
Answer:D
5Whichthreeproceduresshouldacomplianceofficerlookingtoreviseaninstitution’sCTFeffortsinclude inaccordancewiththeWolfsbergGroup’sStatementontheSuppressionoftheFinancingofTerrorism?
AConsultingapplicablelistsandtakingappropriateactionstodetermineifcustomersappearonsuch lists
BReportingmatchesfromlistsofknownorsuspectedterroriststorelevantauthorities
CMaintainingcustomerinformationtofacilitatetimelyretrievalofsuchinformation
DReviewingonlyoriginalidentificationdocumentswhenverifyingcustomers
Answer:A,B,C
Explanation:
UNUSUALCUSTOMERIDENTIFICATIONCIRCUMSTANCES
•Customerfurnishesunusualorsuspiciousidentificationdocumentsordeclinestoproduceoriginalsfor verification"
6Whichmethodisusedtolaundermoneyincasinos?
APurchasechipswithcashandplayatatable
BPurchasechipswithcashandredeemforcash
CPurchasechipswithcashandredeemforacheck
DPurchasechipswithcashandselltoanotherpersonforcash
Answer:C
7AbusinessmanrequestsaEuropeanprivatebanktoopenanumberedoralternatenameaccount
AccordingtotheBaselCommitteeonBankingSupervisionprinciples,whichofthefollowingisthemost importantquestionthebankershouldask?
A.Whowillcontroltheaccount?
BWhowillinherittheproceedsintheeventofthebusinessman'sdeath?
C.Howmuchmoneywillbedepositedintotheaccount?
DWhataccount-openingdateshouldIrecord'!'
Answer:B
8WhyareMoneyServicesBusiness(MSBs)frequentlyaccusedofbeinghighriskformoneylaundering?
AAMSBshouldbeusedtohidemoneyfromaregulatedentity
BMSBsgenerallychargelowercommissionratesthanbankschargemakingthemattractivetocriminals CMSBscanroutefundstomorehighriskcountriesthanbanks
DMSBsaresubjecttoregulatoryscrutinywhichvariesgreatlyfromcountrytocountry
Answer:B
9.Abankmaintainsarelationshipwithacustomerwhoownsasmallbakerybusiness. Whichcustomeractionindicatespotentialmoneylaundering?
A.Thecustomercontinuallymakesregularcashdeposits
BThecustomerhasmultiplebankaccountsatseverallocations
C.Thecustomerpurchasedpropertyinsurancethatistwicethevalueofthebusiness
DThecustomerrecentlywiredalargeamounttoaforeignjurisdictionwherefamilyislocated
Answer:D
10WhichrequirementisincludedintheFourthEuropeanUnionDirectiveonmoneylaundering?
AItrequiresobligedentitiestoconsiderpoliticallyexposedpersonsashighriskforlife
BItrequiresobligedentitiestoconductenhancedduediligenceonallprepaidcardholders
CItrequiresmembercountriestomaintainregistriesofthebeneficialownersoflegalentities
DItrequiresmemberstatestoenacteconomicsanctionsagainstcountriesthatdonotcooperatewith FinancialActionTaskForcerecommendations
Answer:C
Explanation:
Reference:https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32018L0843&from=EN
11.Asuspicioustransactionreportfiledonacardealerstructuringdepositsinitiatesacriminal investigationThedealerchangesbranchesandbeginsplacingtransactionswithafrontline employeetowhomthedealerhasgivennumerousgifts
Thisemployeehandlesallofthedealer'sstructureddepositsanddoesnotreportthesuspiciousactivity internally
Thecompetentauthorityhasadvisedtheanti-moneylaunderingspecialisttoavoidtippingoffthe employeeuntiltheinvestigationisfinalized
Whatactionshouldthespecialisttakenext?
ARecommendtheimmediateterminationoftheemployee
B.Advisethatthedealer'saccountsshouldbeclosed.
CConsultwithseniormanagementandthelegaladvisor
D.Informtheinstitution'sregulatoryagencyofthesituation.
Answer:D
12Whataretworequirementswithrespecttosupportingdocumentationthatisusedtoidentifypotentially suspiciousactivity,accordingtoFinancialActionTaskForce?(Choosetwo.)
AItmustberetainedforatleastfiveyears
BItmustberetainedforatleastsevenyears
CItmustbekeptinamannersothatitcanbeprovidedpromptly
DItmustonlybereleasedtothegovernmentthroughasubpoenaprocess
Answer:A,C
Explanation:
Reference:
https://wwwfatf-gafiorg/media/fatf/documents/recommendations/pdfs/FATF%20Recommendations%202 012pdf
13.Ingeneral,whatisanelementthatafinancialinstitutionorbusinessdoesnothavetospecifically addressinananti-moneylaunderingprogram?
A.Asystemofinternalpolicies,proceduresandcontrols
BAdesignatedcomplianceofficerwithday-to-dayoversightovertheAMLprogram
C.Anongoingemployeetrainingprogram
DAdescriptionofitsOFACprogramtoaddressgovernmentwatchlistscreening
Answer:D
14Apoliticallyexposedperson(PEP)maintainsanaccountatabankLastmonthamoneylaundering analystfiledasuspicioustransactionreportaboutunusualwiredepositsoriginatedbyunknown individualsinthehomecountryoftheofficial Towhomshouldthissituationbeescalated?
ATheboardofdirectors
BThelineofbusinessexecutive
CThebank’santi-moneylaunderingofficer
DTheFinancialActionTaskForce’sPEPHotline
Answer:C
15.Thebranchmanagernoticesthatanumberofcustomerscomeinweeklyandalwaysusethesame tellertoprocesstheirdepositsThemanagernoticesthatthecustomersandtheteller,whoarefromthe sameethnicgroup,arespeakinginaforeignlanguageandeveryonceinawhilethecustomersfromlocal ethnicrestaurantswillbringthetellerlunchThecommercialcustomersthatvisitthetellergenerally depositthesameamountofcasheachtimetheycomein
Howshouldthebranchmanagerrespondtothisactivity?
ATransferthetellertoanotherbranch
BConductfurtherinvestigationbeforetakinganyotheraction
CEncouragethetellertobringinmorebusinessfromtheethniccommunity
D.Suggesttothetellertosendthecustomerstoothertellerstoavoidtheopportunityforcollusion
Answer:B
16Whenshouldtheanti-moneylaunderingriskassessmentbeupdated?
A.Everytwoyears
BAfteramergeroracquisition
C.Whentheboardofdirectorschanges
DWheninstructedtobytheFinancialActionTaskForce
Answer:B
Explanation:
Evaluatingtheriskscoringmodelandconductingtheriskassessmentitselfmayneedtobeperformed annually,everyeighteentotwenty-fourmonths,beforethelaunchofanewproduct,orwhenan acquisitionofanotherfinancialinstitutionoccurs
Reference:
https://wwwwolfsberg-principlescom/sites/default/files/wb/pdfs/faqs/17%20Wolfsberg-Risk-Assessment -FAQs-2015pdf(10)
17.Acomplianceofficerataninsurancecompanyhasbeenreviewingthetransactionactivityofseveral clients
Whichtransactionisconsideredaredflagforpotentialmoneylaundering?
AAclientpaidthequarterlylifeinsurancepremiumusingmoneyordersfromtwodifferentbanks
B.Aclientfromahigh-riskjurisdictionrecentlypurchasedpropertyinsuranceforareal-estate development
C.Acorporationownsseveralaffiliatesandrecentlyopenedseparategrouplifeinsurancepoliciesfor eachoftheaffiliates
DAclientestablisheda$100,000charitableannuitywithanon-profitorganizationthatprovideshealth andsafetyassistanceinternationally
Answer:A
Explanation:
https://wwwnaicorg/documents/committeesdantifraudmeetingccfaqsinsurance103105pdf
18Whencreatingananti-moneylaunderingprogramforaforeignbankwithbranchesintheUnited States,whichofthefollowingareincludedamongthefourminimumelementsrequiredundertheUSA
PATRIOTAct?
1ThedevelopmentofaKnowYourCustomerprogram
2.Anongoingemployeetrainingprogram.
3Thedesignationofacomplianceofficer
4Anindependentauditfunctiontotesttheprogram
A1,2,and3only
B1,2,and4only
C1,3,and4only
D2,3,and4only
Answer:B
19.WhatisthecurrencythresholdundertheEuropeanUnionFourthAnti-MoneyLaunderingDirective?
A3,000Euros
B.5,000Euros
C10,000Euros
D.15,000Euros
Answer:C
Explanation:
Reference:https://wwwacamsorg/aml-resources/eu-fourth-aml-directive/
20AnoffshorecompanyisownedbyfourequalpartnersthatresideinseparatejurisdictionsOnepartner presentsanauthenticatedpowerofattorneyapparentlyexecutedbytheremainingthreepartnersinhis favorandrequeststhatabankaccountbeopenedonbehalfofallpartnersHeneedsthisdonequickly becausethereisalargedepositpendingTheaccount-openingofficercontactsthebank'santi-money launderingofficerforadvice
Whichofthefollowingshouldtheanti-moneylaunderingofficeradviseasaninitialstep?
AVerifytheidentityofallthepartners
BVerifythesourceofthedeposit
C.FileasuspicioustransactionreportwiththeappropriateFinancialIntelligenceUnit.
DFileasuspicioustransactionreportwiththeEgmontGroup
Answer:C
21.Whatisamajoreconomicconsequenceofmoneylaunderingthroughtheuseoffrontcompanies?
APlacingmoreemphasisonmanufacturing
B.Weakeningofthelegitimateprivatesector
CCreatingamorecompetitivepricingenvironment
DAligningmanagementprinciplesbetweencriminalenterprisesandlegitimatebusinesses
Answer:B