Which two channels can be utilized during a cross-border money laundering investigation to assist in gathering
information according to Financial Action Task Force? (Choose two.)
A popular restaurant in town has begun depositing less cash than it has in prior years. In a review of the
customer’s accounts, you notice that credit card receipts have increased with no .
The account officer discovers that the restaurant has installed a privately-owned automated teller machine
(ATM) onsite and has begun construction on a patio dining area.
Which red flag should trigger additional investigation?
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?
What are two requirements for monitoring and reporting suspicious activity for correspondent banking
according to the Wolfsberg Principles? (Choose two.)
As a result of an audit, a policy exception was identified that had been approved by the compliance officer.
The auditor determined that the policy exception is a violation of a regulatory requirement.
What should the auditor do?
A European Union (EU) bank has a correspondent banking relationship with a U.S. bank. Under USA PATRIOT Act Section 311, the U.S. government has enacted special measures against a designated entity that has a payable-through account with the EU bank. Which of the following actions might the U.S. bank be required to take regarding the EU bank's services for the designated entity?
In establishing procedures for the review of suspicious transactions and filling of STRs, what thing should an institution focus on?
An anti-money laundering specialist has been asked to create internal anti-money laundering policies, procedures and controls for a recently chartered offshore financial institution.
Which three should be included? Choose 3 answers
FATF recommends the incorporation of some measures in customer due diligence (CDD) programs including:
An immigrant residing in the United States opens a bank account that includes a debit card. Several months
later, the transactional monitoring system identifies small deposits into the account followed by corresponding
ATM withdrawals from a country bordering a conflict zone.
How should the bank respond?
A national Financial Intelligence Unit, which is responsible for receiving, analyzing and disseminating disclosure of financial information, should consider becoming a member of what organization?
On who does the ultimate responsibility for an institution’s anti-money laundering program rest?
Why is the Mutual Legal Assistance Treaty (MLAT) a gateway for international cooperation?
A compliance officer is looking to update an institutions private bank procedures. What should be included as recommended by the Wolfsberg AML Principles on
Private Banking?
In addition to monitoring for suspicious activity, what are electronic monitoring systems also valuable for?
What three attributes do havens for money laundering and terrorist financing typically have? Choose 3 answers
With which person(s) should an anti-money laundering officer coordinate when implementing a new hire screening program?
Which information must a United States financial institution retain for having foreign correspondent accounts as part of the USA PATRIOT Act record keeping requirements?
According to Basel Committee on Banking Supervision's Customer Due Diligence for Banks, which of the following should provide an evaluation of a bank's policies and procedures independent from its management?
Financial Action Task Force (FATF)-style regional bodies are created and obliged to understand the inherent
money laundering and terrorist financing risks in the region of the world they serve.
What is one of the methods they use to understand these risks?
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.)
A bank has opened a new account for a well-known attorney to manage client funds. During the first six months, bank staff observe the account receives multiple deposits via wire transfer. They also observe that the attorney withdraws cash, makes payments to various people, and transfers funds to the law firm’s account online.
What is considered a red flag for potential money laundering in this situation?
What is the currency threshold under the European Union Fourth Anti-Money Laundering Directive?
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.
In which two ways do Financial Action Task Force-style regional bodies influence anti-money laundering and terrorist financing standards within their respective regions? (Choose two.)
What do the Financial Action Task Force (FATF) mutual evaluations of each member assess?
Which factor should a bank consider before sharing information about a customer with its broker-dealer
affiliate in the case of an investigation?
A junior account manager within an international private bank in Country A was asked by one of his valued customers, who has held an account for several years in the institution, about depositing a large sum of cash into her account. The junior account manager informed his customer that his bank does not accept cash. The junior account manager later reviewed a customer activity report and noticed a number of smaller dollar wires from banks in neighboring Country B, which has lax currency controls, that totaled about as much as the customer intended to deposit.
What should the junior account manager do?
Based on the USA PATRIOT Act, what action might the US take to demonstrate extraterritorial reach?
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?
Which method to launder money through deposit-taking institutions is closely associated with international
trade?
How can a ‘free-look provision’ as part of a life insurance policy help criminals to launder money?
An anti-money laundering specialist has been asked to establish a compliance program to detect and prevent money laundering and terrorist financing. Which of the following should the anti-money laundering specialist consider in developing the program?
1. Funds for money laundering and terrorist financing are derived from illegal sources.
2. Related practices are used to conceal the nature of the funds.
3. The source and disposition of funds are similar.
4. Similar techniques are used to move funds.
A high-volume dealer of precious metals and stones in a high-risk jurisdiction is approached by a new customer interested in selling gold worth $200,000. The customer was referred by a longtime family friend of the dealer and provides no indication of background or business purpose for the sale. The dealer agrees to make the purchase based solely on the reference.
What is the money laundering red flag?
A customer has held an account at a bank and has lived locally for over 25 years. Historically he has come
into the bank monthly to deposit a $1,500 retirement check from the company where he worked. He is well
known at the bank and often brings the staff cookies. Over the past four months, he has come into the bank
every Monday, Wednesday, and Thursday to make $3,000 cash deposits into his account. A review of his
account shows that an $8,500 check made out to cash clears his account each week. The bank has decided
to file a suspicious transaction report (STR).
What is the important fact to include in the STR?
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.)
A U.K. real estate agent has three foreign clients interested in purchasing an apartment building, valued at £30
million, in the outskirts of London as an investment property. The clients are not willing to have their names
provided to the bank. The clients want to purchase to be made in the names of three private companies for
privacy reasons. The plan is to wire the funds into an account held in the name of another private company at
a bank in London.
Which red flag should stop the agent from discussing this potential purchase further?
A comprehensive set of risk-based guidelines for maintaining business relationships is being developed.
Which situation indicates that the institution should terminate the relationship with a client?
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?
In which situation can money laundering adversely affect a country’s currencies and interest rates due to launderers investing dirty funds?
An organization uses an automated surveillance system that generates a very large volume of anti-money laundering alerts. The monthly volume of alerts has increased over the last year causing the compliance staff to fall significantly behind reviewing the alerts. As a result, the system settings are under review to determine if they are appropriate.
Which action should be included in the evaluation of system settings?
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TESTED 30 Nov 2021
