Which activity is most likely to facilitate money laundering through on-line systems with inadequate controls?

A. Conducting a large volume of transactions

B. Providing continuous worldwide access

C. Conducting anonymous transactions

D. Conducting large value transactions

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. casinos, when customers engage in financial transactions equal to or above a designated Threshold

B. Real estate agents when they are involved in transactions for clients concerning buying and selling properties

C. Dealers in art, when theyengage in any cash transaction with a customer at or above a designated threshold

D. Trust and company service providers

A quarterly review is conducted on a retail customer's account at a bank located in a jurisdiction with currency reporting thresholds. A number of large deposits of financial instruments drawn on other institutions in amounts under thresholds were noted. This activity did not fit the account's historical profile. A suspicious transaction report will most likely be filed if what also occurred?

A. The customer has defaulted on a large loan with the bank

B. The deposited financial instruments were sequentiallynumbered

C. Four deposits were made during this period that exceeded the thresholds

D. The customer purchased financial instruments exceeding the threshold on three occasions

A client opens a bank account for a multi-level marketing company. The debits and credits of the account are numerous and very involved. Further, there are a lot of international transactions. Also, funds are being tunneled from the company to the client's personal account in another jurisdiction.

Which two steps should law enforcement take in investigating this matter? (Choose two.)

A. Determine who are the signatories on the account

B. Ask the bank for the history of this multi-level marketing company

C. Examine the flow of money from the company to the individual in an effort to determine if it is legitimate

D. Examine possible Suspicious Activity Report information received from the local Financial Intelligence Units

Which risks could an employee face for violations of AML/CFT laws and regulations? (Choose three.)

A. Being designated as a Politically Exposed Person (PEP)

B. Being named on a government sanctions list

C. Fines and imprisonment

D. Being placed on FATF greylist

E. Expulsion from the Wolfsberg Group

F. Loss of employment

One of the red flags of microstructuring is:

A. depositing sequentially numbered checks.

B. check deposits followed by ATM withdrawals using debt card in retail store.

C. single activity in an account immediately following the opening of the account.

D. frequent visits to make cash deposits of nominal amounts.

Which three actions should employees be instructed to do during an internal investigation?

A. Provide corporate documents directly to law enforcement

B. Inform counsel of all request for documentation

C. Make copies of all documents provided to law enforcement

D. Keep a log of the documents requested

Which is a characteristic of the Financial Action Task Force (FATF) 40 recommendations?

A. They enable FATF's active engagement in law enforcement matters, investigations, or prosecutions.

B. They are automatically transposed into local law across the EU member states and the US.

C. They provide a list of mandatory requirements for an effective AML regulatory framework.

D. They comprise global standards for countering money laundering, recognized by government bodies across the world.

A high-profile, successful entrepreneur has been a client of a Swiss private bank for more than a decade. Recently, the entrepreneur launched a political career, with rather extremist political views. On which grounds can the bank terminate the client's bank relationship? (Choose two.)

A. The client has made its fortune in the mining and excavation industry, which the bank has deemed as a high-risk industry.

B. The client is not able (or willing) to provide documentary evidence of tax compliance.

C. The client's account has an increase in unusual and significant monthly inflows.

D. Continuing the client relationship poses an increasing reputational risk, which could negatively affect the bank's future business.

E. A business partner of the account holder requests an asset freeze, stating a business dispute and disagreement over the quality of goods and services sold to the partner.

AML training programs should extend beyond basic concepts to deliver targeted training by:

A. offering internal policies training, such as customer identification and verification procedures and policies.

B. offering periodic refresher training on AML bases (usually annually) for existing employees.

C. offering general background and history training pertaining to money laundering controls.

D. offering appropriate training tailored to the individual's specific roles, like alerts investigators and SARs writers.