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?
A. Certification of documents presented
B. Requiring an in person interview with the customer
C. Imposing a limit on permissible account activity for a defined period of time
D. Requiring additional review of account opening documents by senior management
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?
A. An understanding of the structure of the company
B. A policy requiring all identified beneficial owners to undergo a national police check
C. A process to ensure that the approval of senior management is obtained prior to opening the account
D. A fee structure that reflects the banks' costs in monitoring the risks associated with entity's business activities
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?
A. By providing a copy of the STR to the board
B. By informing the regulator to bring it up with their next meeting with the board
C. By providing a high level summary of the activity and the interactions with law enforcement
D. By providing a copy of the letter from law enforcement asking the bank to keep the account open.
What does the Egmont Group's support for its members include?
A. Issuing due diligence models for financial institutions
B. Expanding and systematizing international cooperation in the reciprocal exchange of information
C. Issuing strategic products for law enforcement agencies and FIUs on topics of international interest
D. Expanding the ability of FIUs to enforce laws and exchange information globally to combat money laundering and terrorist financing
Which statement identifies one of the duties of a government Financial Intelligence Unit?
A. It serves as the central agency for the receipt of disclosures filed by reporting entities.
B. It administers and enforces economic and trade sanctions based on a government's foreign policy and national security goals.
C. It supervises and regulates banking institutions to ensure the safety and soundness of the nation's banking and financial system.
D. It prosecutes suspected money launderers and terrorist financiers based on financial institution suspicious transaction report filings.
A large international bank has detected potentially suspicious activity in one of its customer accounts. Following an investigation, the bank has determined the activity to be typical of suspected money laundering. To which entity should this activity be reported on a suspicious transaction report according to Financial Action Task Force?
A. National Security Council
B. Financial Intelligence Unit
C. Local law enforcement agency
D. Federal law enforcement agency
A new accounts representative recently opened an account for individual whose stated employment is tutoring students. Which customer action indicates possible money laundering?
A. Continually making weekly small cash deposits
B. Periodically initiating wire transfers to another account owned by a relative
C. Transferring all funds to another bank on the same day of large cash deposits
D. Opening a savings account and makes frequent transfers from the checking account.
What is the main role of the Egmont Group in combating money laundering and terrorist financing?
A. To establish regulations that countries must use when establishing their own FIUs
B. To find ways that FIUs can better cooperate amongst themselves and exchange information
C. To require that all countries participate in a global repository for the sharing of information
D. To create standards that countries can use when drafting laws to combat money laundering and terrorist financing
Which location provides a law enforcement investigator the best opportunity for a productive investigative interview of a suspect?
A. The residence of the suspect
B. The office or work location of the suspect
C. A neutral location such as a coffee shop or restaurant
D. An interview room in the offices of a law enforcement agency
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?
A. Compare settings to organizations within its peer group
B. Flag filters with no history of generating an alert for removal
C. Review parameter settings based on the latest risk assessment
D. Calibrate parameters based on staffing capabilities to clear alerts
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