What describes the Black Market Peso Exchange money laundering method?
An account officer who maintains an excellent relationship with the finance manager for a correspondent bank customer learns that many records for the correspondent bank have been requested by law enforcement. In the interest of maintaining a good relationship with the customer, the account officer sets up a meeting to discuss the legalrequest with the customer. The account officer intends to discuss points related to the investigation during the meeting.
What should an anti-money laundering specialist recommend?
The branch manager notices that a number of customers come in weekly and always use the same teller to
process their deposits. The manager notices that the customers and the teller, who are from the same ethnic
group, are speaking in a foreign language and every once in a while the customers from local ethnic
restaurants will bring the teller lunch. The commercial customers that visit the teller generally deposit the same
amount of cash each time they come in.
How should the branch manager respond to this activity?
Which two statements are true regarding the European Union Money Laundering Directives? (Choose two.)
A retail bank has just acquired a credit card business. The bank’s anti-money laundering policy requires that
new employees are trained within 30 days of their hire date and refresher training is delivered to all employees
on an annual basis.
Is the bank’s existing anti-money laundering training adequate to be delivered to employee of the newly
acquired credit card business?
What is a key objective of the Egmont Group?
What is a key risk associated with Correspondent Accounts according to the Basel Customer Due Diligence paper?
When an institution receives a document request from law enforcement with regard to an STR that the institution has filed, what should institution do?
The Basel Committee on Banking Supervision issued a paper in October 2001 in which it presented a Know Your Customer framework and recommended standards applicable to
Why do governments and multi-national bodies impose economic sanctions?
A bank maintains a relationship with a customer who owns a small bakery business.
Which customer action indicates potential money laundering?
What do Financial Action Task Force (FATF)-style regional bodies do for their members to help combat money
laundering and terrorist financing?
The compliance officer for a bank is reviewing on-boarding documents for a new business account for a
domestic corporation. The officer is unable to verify the identity of the beneficial owners of the company. Only
information on the nominee owners was provided, and none of the listed addresses are local. The purpose of
the business and future expected activity were disclosed to include cash letters, money orders and
international remittance transfers.
Which red flag identifies a heightened money laundering risk?
A bank employee reviews wire transactions looking for indications of wire stripping.
Which two actions should the employee take to complete appropriate bank procedures? (Choose two.)
In general, what is an element that a financial institution or business does not have to specifically address in an anti-money laundering program?
An institution has made the decision to exit a client relationship due to anti-money laundering concerns. Prior
to starting the close out process, the institution receives a written request from a law enforcement agency to
keep the account open. The client is the subject of an ongoing investigation and law enforcement wants the
institution to continue to monitor the account and report any suspicious activity.
What is primary consideration the institution should keep in mind when deciding whether to agree to this
request?
A customer has held an account at a local credit institution for 10 years. The account has received deposits twice weekly for the same amount and has never shown signs of suspect behavior. Monitoring software indicated that in the past few months the account has received several large deposits that were not in line with the account history.
When asked, the customer states she recently sold a piece of property, which is supported with a proof of sale.
Which of the following should the compliance officer do next?
When a bank performs a risk assessment, what areas should an institution focus on?
An anti-money laundering specialist is concerned that several suspicious transaction reports will discuss potential illegal activity of bank employees. In this situation, which of the following is the immediate concern for the institution?
Outgoing foreign transactions of similar amounts trigger a monitoring alert for a customer's accounts. During the evaluation of the accounts, the bank discovers the wire transfers were very small amounts and occurred within the last 3 months following a long period of inactivity. The wire transfers appear to originate from legal sources. To assess the potential of terrorist financing, the institution must ensure the
A bank’s anti-money laundering section receives an anonymous tip that a customer might be engaging in
possible money laundering.
Which two facts should be considered during the course of an investigation into this matter? (Choose two.)
What must be materially true regarding transactions for United States (U.S.) sanctions laws to have
jurisdiction?
A bank receives an anonymous tip from an employee about another employee through its confidential hotline.
Which activity warrants further review?
A United States (U.S.) bank was recently alerted by law enforcement of an increase in sale of large denomination U.S. bank notes to casas de cambio. They suspect that a Mexican syndicate is operating a money laundering scheme in the bank’s jurisdiction.
Which two steps should be taken to trace funds through the bank to assist law enforcement in their investigation? (Choose two.)
Which three conduits for moving terrorist-related funds do terrorist financing generally favor? Choose 3 answers
Which three stages of money laundering are on-line banking vulnerable to?
Which insurance product is particularly vulnerable to money laundering?
A foreign bank operating under an offshore license wants to open a correspondent account with a United
States (U.S.) bank. The foreign bank plans to provide payable through account services to some of its
customers.
What must the foreign bank provide to the U.S. bank under the USA PATRIOT Act?
The Wolfsberg Anti-Money Laundering Principles for Private Banking require new clients to be approved by
whom?
According to the Financial Action Task Force 40 Recommendations, simplified customer due diligence or reduced measures could be acceptable for which of the following types of products or transactions?
1. Life insurance policies where the annual premium is no more than USD/EUR 1,000 or a single premium of no more than USD/EUR 2,500.
2. Insurance policies for pension schemes if there is no surrender clause and the policy cannot be used as collateral.
3. A ptfiisiui i Ll idL pr uviJcfb lelir emei it bei lefils Lu employees.
4. Trusts where the settlor, trustee and beneficiaries are identified and the shares are in bearer form.
A close relative of a privately-owned bank's senior manager requests to open an account. Because of this relationship, the staff expedites the opening of the account without following established account-opening procedures. Applying the Basel Committee on Banking Supervision principles, which of the following poses the highest operational risk?
A money remittance business will most likely attract money launderers because it
1.deals primarily in cash transactions.
2.engages in international transactions.
3. conducts transactions for walk-in customers.
4.does not have to comply with transaction reporting.
Bank A is located in Country A. A wire transfer from Bank B located in Country B is processes by Bank A,where the funds are being moved to a customer at Bank C located in Country C. The wire transfer isdeemed suspicious by Bank A.
Which red flag indicates high potential for money laundering in a real estate purchase?
When creating an anti-money laundering program for a foreign bank with branches in the United States, which of the following are included among the four minimum elements required under the USA PATRIOT Act?
1. The development of a Know Your Customer program.
2. An ongoing employee training program.
3. The designation of a compliance officer.
4. An independent audit function to test the program.
According to the European Union Money Laundering Directives, "knowledge, intent or purpose"' required as an element for money laundering may be inferred from
A client is a wholesale auto business that operates as a used car lot. The client regularly ships vehicles
internationally. In a four-month period, the client received wires totaling $ 1,250,000 from a dealer in Benin in
West AfricA. All wires originated from Benin and were in increments of $50,000.
Account debits made to the account were payable to various transport companies. All incoming checks
reference various vehicles purchased. Dock shipping receipts produced by the client to support account
activity identify the vehicles but cannot easily be tied to the wires receives.
What is the suspicious behavior?
A bank compliance officer discovers cash deposit activity inconsistent with the expected and historical cash
activity within the personal accounts of the chairman of the board. The cash activity appears structured to
avoid the local legal filing requirements for large cash transactions, and a suspicious transaction report (STR)
was filed.
How should the compliance officer report the filing of the STR to the board of directors without revealing the
existence of the filing to the subject?
An AML compliance officer receives notice of government update including the names of the latest terrorists sanctioned by the United Nations Security Council. Which would be the most appropriate step to take?
A financial institution files a suspicious transaction report on a customer as the result of a high volume of large currency deposits to pay off a loan. A law enforcement officer calls the anti-money laundering officer to discuss the suspicious transaction report. Which of the following is the anti-money laundering officer legally permitted to do?
1. Discuss any aspects of the reported activity.
2. Provide copies of the customer's loan documents.
3. Explain the customer's loan payment history.
4. Send the deposit documents referenced in the suspicious transaction report.
Which action indicates possible Penza scheme activity?
Which three procedures should a compliance officer looking to revise an institution’s CTF efforts include in accordance with the Wolfsberg Group’s Statement on the Suppression of the Financing of Terrorism?
What is a major economic consequence of money laundering through the use of front companies?
A compliance officer learns from an Information Technology (IT) source of a potential new financial service being discussed by the new product approval committee.
What is the correct next course of action?
Which action should countries take related to the financing of terrorist acts in accordance with the Financial
Action Task Force 40 Recommendations?
In reviewing recent activity, a compliance officer for a money transmitter that several customers are each
remitting the same amount of money but much more frequently.
How should the institution respond?
With which of the following should an anti-money laundering officer coordinate when implementing anew hire screening program?
Which function provided by lawyers can be useful to a potential money launderer as documented by FATF in its typology report 2000-2001? Choose 3 answers
What are two requirements with respect to supporting documentation that is used to identify potentially
suspicious activity, according to Financial Action Task Force? (Choose two.)
What indicates potential money laundering activity by a lawyer?
Which practices are dealers in antiques, precious metals, precious stones, jewelry, and art advised to follow to reduce the element of money laundering risk? Choose 3 answers
Which scenario is closest to the definition of money laundering the United Nations Convention against Transnational Organized Crime and Other Protocols provided?
The compliance officer for a private bank has been tasked with writing a policy on how the bank will deal with
intermediaries.
Which two aspects should be included in the policy in respect of intermediaries to align it with the Wolfsberg
Anti-Money Laundering Principles for Private Banking? (Choose two.)
A bank located in Arizona is considering a loan application for a new client. The collateral for the loan is a
property in Florida.
The loan will be in the name of a limited company (LLC) whose ownership is not disclosed to the bank. The
LLC was established by a New York-based attorney.
The loan will be repaid by the LLC in monthly wire transfers of $9,000 which is more than the required monthly
payment.
Which aspect indicates potential for money laundering?
When must a United States (U.S.) bank block or reject an international funds transfer when there is an Office
of Foreign Assets Control designated party to the transaction?
According to the Financial Action Task Force 40 Recommendations, Designated Non-Financial Businesses and Professions include
Upon a routine account review a money laundering investigator identified a number of large round dollar wire transfer deposits into a business account owned by a local auto repair shop. The wire transfers all originated from a country that is a known financial secrecy haven with poor anti-money laundering controls. The investigator concludes there appears to be no legitimate business purpose for the wire transfers and files a
suspicious transaction report. The owner of the auto repair shop is popular in the community and is a wellknown philanthropist.
To whom should the investigator escalate these concerns?
What are two requirements of United States financial institutions when conducting business with an
international institution as a result of the USA PATRIOT Act? (Choose two.)
Which statement about U.S. Specified Unlawful Activities (SUA) is true?
What is an example of the integration stage of money laundering involving a bank or another deposit-taking institution?
A compliance officer provides an overview of the bank’s anti-money laundering program to a group of new
tellers during employee orientation.
Which training element should be delivered to this audience?
Which situation would require enhanced due diligence be performed on a customer?
When a regulatory body requires international assistance in a money laundering inquiry, such assistance is typically obtained by
An AML specialist at a financial institution is presented with a search warrant. Which actions should be taken to comply with the search? (Select Two.)
Which of the following best describes the Basel Committee on Banking Supervision's principles on customer due diligence?
Suspicious activity triggered a suspicious transaction report filing on a company that holds an account at a large commercial bank. Investigations revealed that a member of the bank's Board of Directors is the major shareholder of the company. Further review revealed the bank had no reasonable explanation for the activity, but could not confirm if criminal activity occurred. Which of the following is the next best course of action for the compliance officer?
An oil exploration company based in France does business with oil refineries in Iran, which is subject to comprehensive Office of Foreign Assets Control (OFAC) sanctions. What type of OFAC sanctions should be imposed against the French company?
What national agency is responsible for analyzing and assessing the information it receives to substantiate possible existence of money laundering or terrorist financing activities?
Which actions are involved when a prosecutor instructs a bank to freeze the assets and bank accounts held by one of its clients? (Choose three.)
Private investment companies are potentially vulnerable to money laundering because:
A potential client calls a broker-dealer wishing to purchase securities. The client does not appear to be concerned with any fees associated with the account or price of the securities. Further information provided by the potential client indicates the individual may have relatives working for a company in which the potential client wants to invest. Which type of activity is the potential client attempting to commit?
Which is a characteristic of the Financial Action Task Force (FATF) 40 recommendations?
According to the Financial Crimes Enforcement Network, after an initial suspicious activity report has been filed for a customer, a financial institution must perform a continuing review of the account for a period of how many days?
A compliance officer at a small local bank reads in the newspaper that a high ranking local public official, who is a long-standing account holder, is being investigated by the competent authorities for accepting bribes from a well-known construction company with offices in the town. The compliance officer immediately checks the official's account and other recently opened accounts at the bank. The official opened a new account at the bank a few weeks ago. The compliance officer's investigation of these accounts discloses that the official's longstanding account had no unusual activity and the recently opened account had no activity since it was opened. Which of the following should the compliance officer do next?
Which type of sanctions are most likely to be used in order to avoid escalating violent conflicts and/or proliferation of weapons?
One area of responsibility for the Board of Directors when implementing a successful AML program is to:
What are the three basic functions of a national financial intelligence unit?
An individual opens an e-account in an off-shore gambling website using non-documentary verification and creates an e-wallet on a mobile device. In order to add funds to the account, the individual uses a credit card, wire transfers, cryptocurrency, and a money service business. Which source of money represents more risk of money laundering?
Which assessments are involved in the processes of mutual evaluation and follow-up by the FATF?
The recommended way lot a financial institution to respond to a request from a law enforcement agency is to:
In accordance with Financial Action Task Force (FATF) standards, when the minimum AML requirements of the host country where a financial institution (Fl) operates are less strict than those of the Fl's home country, the Fl:
The owner of a local retail store makes multiple deposits daily at a bank. When the owner makes these deposits, it is noted that he goes to different tellers (cashiers). The deposits consist of cash in amounts less than the currency reporting threshold. Which of the following best describes this activity?
An EU Trust and Company Service Provider (TCSP) analyst notices some unusual activity while looking through a customer's financial statements and detailed general ledger. The customer is in the business of importing and exporting machineries. Which transaction indicator warrants further escalation to the compliance officer?
The marketing department presents to an anti-money laundering specialist a business plan targeting individuals holding important public positions. In addition to obtaining the proper identification and basic information from these customers, what else should the anti-money laundering specialist recommend a financial institution do to check the background and conduct enhanced due diligence based on public information?
1. Determine if a client appears on the Basel Committee on Banking Supervision's list of public officials.
2. Investigate the source of funds.
3. Identify people and companies that are clearly related.
4. Identify a person fully, including their political history.
Which type of formal agreement occurs between countries that wish to aid each other in the investigation and enforcement of criminal laws?
Which are red flags indicating potential engagement of a bank employee in money laundering? (Select Two.)
The owner of a real estate investment company deposits multiple cashier's checks that were bought using cash over a three-month period, from the sale of two apartments. This account also receives several electronic transfers from other financial institutions for 10.000 USD each. What activity is considered suspicious of money laundering?
A financial institution in a jurisdiction with currency reporting thresholds is undergoing a branch office compliance review. A large number of currency transactions in amounts exceeding a reporting threshold were discovered without a currency transaction report (CTR) being filed. The transactions were handled by the same teller (cashier). This teller (cashier) was recently hired and had not received anti-money laundering training yet. The branch manager received daily exception reports of all large currency transactions as well as a report of all CTR filings. Which of the following should the compliance officer recommend as the initial action?
A new business opened an account at a bank. After a month of activity, the account is referred to AML Investigations for potential human trafficking activity. Which red flags most likely triggered the referral? (Select Two.)
Once a financial institution has reported suspicious transactions on a valued customer, it should cooperate with competent authorities by
Which red flag should a compliance officer prioritize first for investigation?
The compliance department receives an internal referral that appears to indicate terrorist financing. What is the first step that should be taken in the investigation process?
Which is a red flag for funds transfers?
Which of the following activities conducted at a financial institution is the strongest example of avoiding reporting thresholds?
Which key factor would result in the decision for a financial institution (FI) to exit a client relationship?
An anti-money laundering specialist has just developed and implemented an anti-money laundering program. Which of the following is the best resource to evaluate the effectiveness of the program?
What is a primary responsibility of a financial intelligence unit?
The most important anti-money laundering issue associated with on-line banking is accurately
When performing an investigation, which key steps should be taken to maintain and secure supporting documentation used to perform an investigation of a suspicious activity?
A customer runs an export business for agricultural products. There has been steady growth over the years from sales to the Caribbean region. A sudden increase is noted in this customer's account balances during the last month.
On what grounds should an anti-money laundering specialist prepare a suspicious transaction report?
A bank in an offshore jurisdiction approaches an institution about opening a new correspondent banking relationship. Prior to opening the account, the new account representative obtains copies of the offshore bank's anti-money laundering policies and procedures, and all appropriate legal documentation for the bank; ascertains no third parties will be able to access the accounts; and determines the owners of the bank, the bank's primary business activities, and the business address of the bank. Which of the following steps does the Basel Committee on Banking Supervision's Customer Due Diligence for Banks Paper recommend the banker take prior to opening Oils correspondent account?
1. Conduct a site visit and meet all the principals and beneficial owners in person.
2. Verify the bank has a physical presence in the country where it is incorporated.
3. Confirm the bank is subject to regulatory supervision with adequate anti-money laundering laws.
4. Obtain and maintain a complete listing of the correspondent bank's customers, including politically exposed persons.
Which information should be gathered as part of enhanced due diligence (EDD) for a high-risk customer?
Which situations would require a financial institution (FI) to update its ML/TF risk assessment? (Choose two.)
Which of the following poses the greatest money laundering risk for a financial institution offering on-line services to customers?
How does the Asian/Pacific Financial Action Task Force
The bank's internal financial intelligence unit (FIU) has reviewed activity related to a politically exposed person (PEP); the activity in the account contains a large, round number, one time wire to an obscure organization. Which would not be a sufficient reason to file a SAR/STR?
Which is a key aspect in the FATF Recommendations that best describes the essential foundation for allocating resources in AML/CFT regimes for countries and financial institutions (FIs)?
An anti-money laundering consultant audits a bank's current anti-money laundering policies, procedures and controls. The bank serves high-income, high net-worth clients who include non-residents and offshore businesses. During a review of the custom list, the anti-money laundering consultant determines that he and the bank have mutual clients. The bank's written anti-money laundering program includes a process for the bank to establish the identity of the person with whom they conduct business, but does not address monitoring of customer account activity.
The consultant should recommend the bank:
A compliance analyst is reviewing recent activity between a publicly traded company and a company in a high risk jurisdiction. Which detail suggests that escalation is warranted?
A prospective client walks into an accounting firm wanting to incorporate a company. The accountant feels uncomfortable after the meeting. Which two of the accountant's observations warrant escalation to the compliance officer? (Select Two.)
According to recommendations from the Financial Action Task Force, what role does a country's financial intelligence unit play in safeguarding against money laundering?
Client A is flagged for a high volume of outgoing transfers. Further investigation reveals Client A has a potentially key role in a network linked to human trafficking. After filing a suspicious activity report, what step should the investigator take next?
According to the Financial Action Task Force, financial institutions should be required to implement:
Which safeguard is in place for Financial Intelligence Units (FIUs) to share information securely according to Egmont?
Which are essential elements of a KYC program identified by the Base1 Committee on Banking Supervision? (Select Two.)
How does the Financial Action Task Force (FAT F) measure the effectiveness of a country's efforts to combat money laundering and terrorist financing?
Which is an emerging risk associated with cyber-enabled fraud?
A key element required to ensure an anti-money laundering compliance program is effectively embedded into an institution's culture is
Financial institutions (FIs) perform AML risk assessments to ensure:
Cybersecurity risk can result in identity theft by:
An internal review of anti-money laundering training documentation revealed only new agents employed by a financial institution that sells life insurance products were trained. Additionally, it typically took the institution 8 months to begin training for new actuaries. The compliance officer explained training was limited to actuaries because they perform the only high-risk function. The institution relied on e-learning techniques without follow-up assessment.
Which of the following issues would the internal review most likely recommend?
A law enforcement agency is conducting an investigation of a financial institution (Fl). How should the Fl respond to the law enforcement agency's requests?
Which statements describe risks that are associated with international business corporations? (Select Two.)
Abank in the Netherlandshas been requested toshare informationabout aseries of transactions and related customerswith abank in Italy. Both banks are subject toEuropean Union jurisdiction.
Which factor ismost importantto consider before theDutch bank shares the requested informationwith the Italian bank?
The primary roles of a Country's Financial Intelligence Unit (FIU) include: (Select Two.)
Customers of a telecommunications firm received an email explaining an issue with their last order. The customers were directed to the company website via a link in the email to provide personal information. Both the email and website were fake. What type of cybercrime has been committed?
Whichchanges at a financial institution (FI)should trigger anenterprise-wide reassessmentof itsinherent AML risk exposure? (Select Three.)
Section 319(a) of the USA PATRIOT Act:
What action does the USA PATRIOT Act allow the US government to take regarding financial institutions (Fls) that are based outside of the US?
AnAML/CFT unit often compiles information about customer activity and product usagethat might be of interest toother parts of the organization.
Before allowing the unit to communicate such information internally, the organization mustreview:
A financial institution is designing anEnterprise-Wide Risk Assessment (EWRA).
According to theWolfsberg Group’s risk-based approach to AML, an effective EWRA should:
Which of the following is a critical consideration for private sector firms when sharing data and intelligence to combat financial crime?
Whichmeasures help limit the collection and use of personal datawhen performing AML-related controls?
A financial institution's (Fl's) policy is to apply enhanced due diligence (EDD) for every new client to ensure the effectiveness of the program. How should a consultant advise the Fl's management team?
AFinancial Intelligence Unit (FIU)in a country has received aSuspicious Activity Report (SAR)involving significant suspicious fund transfers,both domestically and internationally. TheFIU requires additional information from a foreign countryto determine whether the matter needs to be referred for prosecution locally.
Which of the following statements istruein this scenario?
Law enforcement is confidentially investigating 20 individuals suspected of belonging to a criminal network allegedly involved in laundering tens of millions of euros for cybercriminals. Which actions need to be taken by the AML Specialist at a bank upon learning the alert? (Select Two.)
Which actions should be taken bya financial institution (FI) when it receives a grand jury subpoena regarding a customer?
An employee at a financial institution (Fl) suspects that one of their co-workers is involved in a financial investment scam syndicate. Which step should be taken next by the employee who has the suspicion?
Which is a purpose of imposing sanctions?
Ateam overseeing the governance and effectiveness of a bank’s transaction monitoring approachshould implement which strategies? (Select Two.)
What are theroles of a government Financial Intelligence Unit (FIU)? (Select Three.)
Which step shouldfinancial institutionstake when complying withsanctions requirements?
Whichkey metricwould provide themost valuable datatosenior managementabout theeffectiveness of its AML controls?
Aninternational bankis investigating apayment requested by a correspondent banking partner. The payment originated from acorporation located in Hong Kong, and the final beneficiary is anindividual in New York. The transaction triggered an alert in the bank’sautomated transaction monitoring system.
Which steps should the bank take first to address the alert? (Select Three.)
Which of the options below is an indicator of potential insider activity that may warrant escalation For further investigation?
A legal instrument that isexecuted between two nationsand governscross-border information sharingis known as a:
When deficiencies are identified in the Financial Action Task Force (FATF) mutual evaluation report, the assessed country needs to:
AnAML compliance officeris drafting plans toaddress deficiencies identified in an independent audit.
Which approach is thebest option?
The Head of Compliance was informed by external auditors of a finding that indicates an element of AML policy failed to comply with the regulatory requirement. Which action should the Head of Compliance take next?
Whichred flag is most relevant to money laundering through capital markets?
Which of the following measures isone that the FATF recommends that Financial Institutions (FIs) and Designated Non-Financial Businesses and Professions (DNFBPs) taketo mitigate risks arising from business relationships withforeign politically exposed persons (PEPs)?
A customer's registered business activity is a domestic carpet cleaning company. Besides domestic receipts, there are incoming weekly transactions from an international reputable
auction house starting at 15,000 USD and averaging 30,000 USD. The matching cash outgoings amount to 90% of the incoming deposits to non-related individuals. Which is most
concerning for potential money laundering?
Which approach ensures the successful implementation of a transaction monitoring system?
Whichpractices are crucialfor ensuring that anorganization effectively limits the collection and use of personal datawhen performingAML-related controls?
The compliance officer at a casino in Taiwan discovers that the casino received multiple cash deposits from a customer just below the Large-Amount Transaction Report (LTR) limit on consecutive days. The customer used three different betting accounts.
What is the appropriate next step?
Which of the following are common indicators of possible money laundering within the securities industry? (Select Two.)
AFinancial Intelligence Unit (FIU)in a country receives aSARinvolving potential money laundering. The FIU wants toshare this information with a foreign FIU.
Which mechanism allowssecure information sharingbetween FIUs?
A UK national has accounts with a bank in Belgium, who maintains a branch in New York. The UK national has been recently added and screened against the Office of Foreign Assets Control (OFAC) Specially Designated Nationals and Blocked Persons List. Which action should the Belgian bank take?
According to Basel Committee guidelines, which level of the organization should determine whether or not to enter business relationships with higher risk customers?
Which product type is subject to US extra-jurisdictional reach over non-US banks and non-US persons under the USA PATRIOT Act?
Which is an indicator that there is an attempt to conceal a company's true beneficial ownership?
According to the Financial Action Task Force methodology, which situations would require a financial institution (FI) to consider filing a suspicious activity report?
A customer has borrowed the cash surrender value of their life insurance policies. Which requires a further investigation and filing of the suspicious activity report?
When applying new technologies to AML, application programming interfaces (APIs) allow for:
According to theFinancial Action Task Force (FATF) methodology, which situations would require afinancial institution (FI) to consider filing a Suspicious Activity Report (SAR)?
The compliance officer at an EU bank is investigating one of the customer accounts maintained with the bank for the last two years. According to bank records, the company's primary economic activity is import and export of petrochemical products Over a period of one year, the account transactions have exceeded US$500 million with various high-value inward wire transfers received from suppliers in Yemen followed by outward wire transfers to counterparties in Azerbaijan.
Which factor should give the compliance officer the greatest concern If observed in the investigation?
According to the Basel Committee, customer acceptance, customer due diligence, and record-keeping policies and procedures should be changed as necessary to:
What are themost effective measuresthat can be taken toboost risk appetite awarenessacross an organizationafter a Risk Appetite Statement (RAS) has been setand arisk appetite frameworkhas been drafted? (Select Three.)
News published in Country A reports that a politically exposed person (PEP) had received a bribe from a transnational company headquartered in a developing country of approximately USS1.5 million deposited into on account at a financial institution (Fl> located in Country B Both countries are members of the Egmont Group The account where the money was deposited belongs to the PEP's immediate family member. To corroborate the facts, the PIU of Country A sent a formal request via secure communication channels for further information from its counterpart FIU in Country B.
According to Egmont principles, the FIU of Country B can:
In order to demonstrate commitment to AML compliance within a bank, the Board of Directors should:
When investigating an AML event, which techniques would be used to investigate suspected mule accounts? (Select Three.)
When theFinancial Action Task Force (FATF)places a jurisdiction on the list of"jurisdictions under increased monitoring", also known as the"grey list", the jurisdiction:
Whichred flags could indicate increased terrorist financing and money laundering risksrelated tocultural objects and high-value art? (Select Three.)
Which economic and social factors could create a dependency on illicit activities and money laundering? (Select Two.)
TheWolfsberg Group’s AML Principles on Private Banking:
A typical red flag regarding potential money laundering in connection with an art purchase occurs when a customer:
Based on the AML principles outlined by the Wolfsberg Group, what do private and correspondent banks have in common when monitoring for terrorist financing?
Which statement about theextraterritorial reachofU.S. laws and legislationisaccurate?
Themanager of a bank’s KYC teamdiscovers that ahigh-risk customer’s activity was not reviewed last quarteras required by the bank’s internal compliance schedule.
What should the KYC team manager do?
Which online gambling scheme involves placing bets with deposited funds and colluding with other players to obscure the money’s origin?
Non-compliance with relevant anti-money laundering laws and regulations can result in: (Select Two.)
Which of the followingindicates potential money laundering activity by a lawyer?
According to the Financial Action Task Force (FATF) Recommendation 22. when involved in customer transactions that include the buying and selling of real estate, real estate professionals are required to apply which customer due diligence (CDD) measures? (Select Two.)
Which statement identifies one of the duties of a government Financial Intelligence Unit?
A money transmitter’s nation-wide agent network remits funds to a country in Africa on behalf of an immigrant community based in the United States. A terrorist group is known to operate openly in this African country. In reviewing transaction records, the compliance officer detects a pattern where two customers together visit the same agent each week and remit the same amount of funds, $2,500, to the same recipient in the country in Africa.
What should alert the compliance officer to possible money laundering or terrorist financing activity by the two customers?
The Wolfsberg Principles for Private Banking list circumstances that would require additional due diligence, including activities that involve which three of these choices?
Which primary international authoritative body designates sanctions?
A bank maintains a number of United States (U.S.) dollar correspondent accounts for foreign financial institutions. Upon a routine review of a U.S. dollar correspondent account owned by Foreign Bank A, a number of transactions appear to have been originated by Foreign Bank B outside the expected activity for this account. These transactions appear suspicious and a suspicious transaction report was filed by the compliance officer.
Which step should the compliance officer take?
An anti-money laundering specialist working at a bank just received a legal request from a law enforcement agency mandating the release of all financial transaction records relating to an account at the bank. The specialist immediately recognizes the account as one owned by the bank Chief Executive Officers brother. During research to gather the requested documents, the specialist finds several internal memos he had sent to the bank president with concerns regarding possible suspicious activity relating to this account. The specialist recalls the bank president verbally responded to each memo with an explanation of the activity and indicated there was no cause for concern. What should the specialist do with respect to these internal memos?
A compliance officer for a casino may suspect money laundering if an individual:
Which situation is the highest risk for money laundering and terrorist financing activity?
The new compliance officer has reviewed the bank’s anti-money laundering training program. The program consists of online training for all new employees within 30 days of hire date and annual refresher training to all employees. In addition, there is specialized training for areas that deal with higher risk products and customers.
Over the last year, there have been no regulatory changes and no new products or services have been introduced. The compliance officer wants to propose to the board of directors that the annual refresher training is still current and can be delivered unchanged to all employees.
Which two critical pieces of information could be missed by taking this approach? (Choose two.)
To ensure that an institution’s anti-money laundering program is current, which step should be taken?
A bank sells reloadable open-loop prepaid cards to both customers and non-customers.
What is a red flag associated with these cards that may indicate money laundering?
An anti-money laundering specialist has just developed and implemented an anti-money laundering program. What is the most effective resource to evaluate the effectiveness of the program?
According to experts, what is the most effective way to prevent money laundering through financial institutions?
In performing a risk analysis, which factor(s) should a financial institution review?
In addition to monitoring for suspicious activity, what are electronic monitoring systems also valuable for?
What does the Financial Action Task Force (FATF) urge its members and all other jurisdictions to do when a jurisdiction is identified as having lax anti-money laundering / counter financing of terrorism controls?
Who has the day-to-day responsibility of communicating and reinforcing the established anti-money laundering compliance culture and program?
What are three potential issues for foreign financial institutions maintaining correspondent accounts with U.S. banks under the Patriot Act? Choose 3 answers
Which is a key goal of EU Directives on money laundering?
A benefit of using bearer shares in corporate formations is that bearer shares are:
The ultimate goal of economic sanctions is to:
Pursuant to the Third European Union Money Laundering Directive, how long after being out of prominent office should a person NOT be considered to be a
Politically Exposed Person (PEP)?
Which two steps should a financial institution take when it receives a law enforcement request to keep an account open that may be associated with suspicious or criminal activity? (Choose two.)
A company service provider in Country A sets up a corporate structure for a client from Country B, which is known for corruption. The corporate structure includes a holding company in Country A with a bank account in one of the international banks located there.
During on-boarding, the client's wealth was estimated at $7 million. Shortly thereafter, the client's father became president of Country B. During a routine client review two years later, it was identified that client's wealth had grown to $510 million.
What are two red flags that indicate money laundering or financial terrorism? (Choose two.)
How can a ‘free-look provision’ as part of a life insurance policy help criminals to launder money?
Enhanced due diligence (EDD) may be bypassed for which situation?
What are the European Union Directives on Money Laundering?
A profitable commercial customer who operates an import-export business has multiple accounts with the same institution at branches m different locations. The customer receives funds from a jurisdiction perceived as highly corrupt according to Transparency International ratings. The customer makes frequent transfers among the accounts and prefers to manage the accounts separately. What should the institution do to mitigate the risk associated with these accounts?
At a small community bank, the compliance officer identifies unusual activity on a customer, who with his personal and company accounts, is the bank’s largest depositor. The customer’s companies have significant balances on their outstanding loans. The compliance officer notices that there is a lot of unusual movements of money between the customer’s individual and business accounts. After filing a suspicious transaction report (STR), the compliance officer gets a call from law enforcement indicating that they want the bank to keep the account open while they conduct an investigation into the customer.
How should the compliance officer escalate this information to the board of directors?
Which three entities does the Third European Union Money Laundering Directive apply to?
A law enforcement agency is reviewing a suspicious transaction report (STR) filed by a financial institution for suspicious activity on a client's account.
Subsequently, the agency requests further information.
Which supporting documentation might the law enforcement agency request from the institution to facilitate its investigation?
Which are the two most common controls a financial institution (FI) uses to identify suspicious money-laundering activity? (Choose two.)
A director of a financial institution was convicted of laundering money as part of a Ponzi scheme and terminated. As a result of an internal investigation evidence proved that an employee assisted in the illegal activity.
Which action should the institution take?
A precious metals dealer opens a new account with a bank. Which requires a referral to AML Investigations for further review?
A new accounts representative recently opened an account for individual whose stated employment is tutoring students.
Which customer action indicates possible money laundering?
Which measure to mitigate risk does the Basel Committee’s Customer Due Diligence Principles suggest banks apply when accepting business from non-face-to-face customers?
What was the topic the Wolfsberg Group’s first guidance addressed?
Which statement is true about when an institute becomes aware that a particular employee is under investigation by law enforcement as a result of a subpoena or warrant?
The compliance officer for a private bank has been tasked with reviewing the procedure for authorized signatories on customer accounts to ensure it is in line with relevant Wolfsberg Anti-Money Laundering Principles for Private Banking.
Which three statements from the procedure are in line with Wolfsberg? (Choose three.)
Financial Intelligence Units (FIUs) are responsible for:
Which unusual or suspicious activity by a financial institution's (FI's) employee requires additional investigation and scrutiny?
What is a tool governments and multi-national bodies can use to prevent the proliferation of weapons of mass destruction?
When providing reporting of STRs to the board, which of the following should be provided?
Which three do the Office of Foreign Asset Control regulations cover? Choose 3 answers
Which action should financial institutions with cross border correspondent banking activity be required to perform according to the Financial Action Task Force 40 Recommendations?
What is the primary action a financial institution should take before formulating its anti-money laundering program?
A remittance company received a money order from a senior political figure m the Philippines to transfer a large sum of money to a charity group in the Philippines. A review of the charity group revealed a director having dose ties with a known terrorist group primarily financed through kidnapping and extortion.
What is a key risk indicator associated with terrorism financing?
What is the term for trading through multiple accounts, where an individual generates offsetting profits and losses and transfers of positions through accounts that do not appear to be commonly controlled?
Which information must a United States financial institution retain for having foreign correspondent accounts as part of the USA PATRIOT Act record keeping requirements?
Which three areas do FATF’s 40 recommendations cover? Choose 3 answers
In the FATF 40 recommendations, the focus of AML efforts has been expanded beyond Financial Institutions. Which three businesses and/or professions are covered? Choose 3 answers
A compliance officer at a large financial institution has been tasked by senior management to lead a team in an internal review and potential revision of the institution’s customer onboarding program following a regulatory enforcement action of another institution.
Which step should the compliance officer perform first?
Which activity would require an update to the first line training program?
Why do organized crime groups often use front companies? (Choose two).
When an institution files an STR with regard to a particular account, what steps should the institution take visa account?
What does the Basel Committee’s Customer Due Diligence for Banks paper suggest that a bank needs to have in place when establishing an account for a corporate business entity?
The board of directors receives notice from the primary regulator of the bank that potentially suspicious activity has been identified and the bank president appears to be involved. The Board asks the compliance officer for advice.
Which action should the compliance officer take when informed?
Which statement about a multinational institution’s ability to fully investigate unusual activity in all its foreign operations is correct?
Which principles should be included in a FATF-Style Regional Body (FSRB) update? (Choose two.)
What core objective does the Egmont Group suggest would lead to an effective national Financial Intelligence Unit (FIU)?