Which two mechanisms should be implemented to assist with cross-border money laundering investigations? (Choose two.)
A. Countries should request Interpol to provide the required information.
B. Countries should ensure that information received is protected from unauthorized disclosure.
C. Countries should establish mechanisms allowing financial investigators to obtain and share information in respect of specific investigations.
D. Countries should conduct separate investigations to ensure information is not unintentionally disclosed without the appropriate legal approval.
An existing customer at a bank has recently expanded its services to provide check cashing for its customers.
Which factor indicates the bank should terminate this relationship?
A. The bank has not updated its automated monitoring system.
B. The business has no previous experience with this service.
C. The business has not updated its anticipated activity with the bank.
D. The business is now a Money Service Business and has not registered with FinCEN.
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?
A. Withdrawing cash
B. Making payment to various people
C. Receiving multiple deposits via wire transfer
D. Transferring funds to his law firm's account online
Which key aspect of the Office of Foreign Assets Control's extraterritorial reach specifically relates to prohibited transactions?
A. Prohibit or reject unlicensed trade and financial transactions with specified countries, entities, and individuals
B. Prohibit or reject licensed trade and financial transactions with specified countries, entities and U.S. individuals
C. Prohibit or reject licensed trade and financial transactions with specified countries, entities and non-U.S. individuals
D. Prohibit or reject unlicensed foreign trade and financial transactions with specified countries, entities, and individuals.
How can a `free-look provision' as part of a life insurance policy help criminals to launder money?
A. A policy owner can decide how to pay the premium within a pre-defined period.
B. A policy owner is able to terminate the contract without penalties such as surrender charges.
C. A policy owner has freedom to decide who the beneficiary of the policy will be and can in this way move money to a related third party.
D. A policy owner has freedom to decide who the beneficiary of the policy will be and can in this way move money to an unrelated third party.
Since its last regulatory examination, a financial institution has aggressively grown by adding profitable new products and services. The institution has not historically received regulatory criticism regarding its anti-money laundering compliance program. However, a recent regulatory examination cited significant deficiencies in the anti-money laundering program that were attributed primarily to the lack of oversight by the institution's leadership in implementing adequate controls over the new products and services.
Which area of international control should leadership first address to correct the weaknesses in the program?
A. Anti-money laundering policy
B. Anti-money laundering policy
C. Money laundering risk assessment
D. Anti-money laundering compliance staff
A periodic review of the account of a small household goods business reveals multiple shipments of goods to a country classified by the bank as high risk. They were transshipped through another country prior to the final destination. In the past three months, volumes over 25,000 units. The business has been a customer of a bank for 10 years.
Records show previous shipments to destinations primarily in Europe involving quantities of 5,000 units or less. Recent shipments are listed as being received by the same company as the earlier shipments and payments are being received from the same originator, but the unit price of the goods is three times higher than before.
Which two red flags indicate potential trade-based money laundering? (Choose two.)
A. The shipments of the same goods are now going to a different location.
B. The goods are transshipped through one or more jurisdictions for no apparent economic reason.
C. The size of the shipments appear inconsistent with the exporter's previous business activities.
D. The goods are shipped to a jurisdiction that the bank classifies as "high risk" for money laundering activities.
Which three definitions of money laundering are included in the expanded definition of the European Union Fourth Directive? (Choose three.)
A. The creation of shell companies to disguise the identity of its owners
B. The conversion or transfer of property with knowledge that it is derived from criminal activity
C. The acquisition or use of property knowing, when it was received, that it was derived from criminal activity
D. The transfer of cash in excess of 15,000 euros across country borders regardless of whatever the cash was derived from criminal activity
E. Concealing or disguising the nature, source, location, disposition, movement, rights with respect to, or ownership of property, knowing that the property is derived from criminal activity
What might limit a compliance officer's ability to respond to a foreign law enforcement official's request to provide information with regard to an anti-money laundering investigation?
A. Privacy and data protection laws in the compliance officer's country
B. Whether there is a mutual legal assistance treaty between the countries of the compliance office and the law enforcement official
C. Whether the request has been processed by the foreign law enforcement official's embassy in the compliance officer's country
D. Anti-money laundering laws that require the confidential treatment of Suspicious Transaction Reports in the law enforcement official's country
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?
A. Apply counter-measures to that jurisdiction
B. Consider customers from that jurisdiction as high risk
C. Cease doing business with that jurisdiction immediately
D. Apply economic sanctions until otherwise notified by FATF
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