Which two aspects of precious metals pose the highest risk of money laundering? (Choose two.)
A. Some precious metals can be formed into other objects, making easier to transport
B. Precious metals have high intrinsic value in a relatively compact form and are easy to convert into currency
C. The value of precious metals can be inflated easily, making it easy to increase the amount of money laundered
D. Precious metals can be readily used in many high-tech commercial applications, making them all the more valuable
Which two methods have terrorist groups used to diversify their revenue stream and to fund their operations? (Choose two.)
A. Human trafficking
B. Engaging in civil conflict
C. Smuggling cultural artifacts
D. Engaging in wire transfer activity
The anti-money laundering compliance officer for a small money transmitter has several agent locations in the same geographic area in the United States. The customers are immigrants from Country A and the majority of the funds are
remitted to Country A.
In a meeting with one of the agents, it is recently discovered that two new customers have been coming in three times a week and sending funds to the same recipient in Country B. Each cash transaction always totals exactly $8,000.
What should alert the agent to possible money laundering activity by the two customers?
A. They remit funds to the same person
B. They have been coming in three times a week
C. It is unusual for customers to remit to Country B
D. Each of their transactions is just below the cash reporting threshold
A bank receives an anonymous tip from an employee about another employee through its confidential hotline.
Which activity warrants further review?
A. A mortgage officer works with home loan applicants to resolve adverse credit issues
B. An employee in bookkeeping accepts funds transfer requests from customers via telephone
C. An employee in accounting works with customers to help understand how to reduce service charges
D. A teller distributes bank brochures to customers who regularly conduct cash transactions below reporting limits
A bank located in New York has identified suspicious transactions at a correspondent bank in China. For one of the international customers, the correspondent bank is not following agreed upon protocols.
Which factor indicates that the bank should terminate the relationship?
A. The correspondent bank has opened branches in a country on the Office of Foreign Assets Control list.
B. The compliance officer at the correspondent bank is currently being investigated due to bribery allegations.
C. The correspondent bank has recently exceeded acceptable limits in the primary banks' recently developed risk model.
D. The primary institution has requested transactional details from the correspondent bank to aide in their investigation.
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. Contacting existing liaison officers in the foreign jurisdiction
B. Exchanging information between national law enforcement agencies
C. Contacting the potential suspect or their family members to request information
D. Submitting only formal requests for information to a financial intelligence unit
A financial institution receives a regulatory enforcement action because of deficiencies in its anti-money laundering program.
Which action should the board of directors take?
A. Terminate the compliance officer and staff
B. Purchase and install a new suspicious activity monitoring system
C. Hire an attorney with instructions to protest the enforcement action
D. Instruct the compliance officer to develop a plan to remediate the institution's anti-money laundering program
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?
A. The recent change in the timing of deposits and withdrawals in the account
B. The customer's work history and the amount of his monthly retirement check
C. The fact that the account holder is well known to the bank staff
D. The fact that the customer has lived in the area and has banked at this bank for 25 years
A bank employee recently opened an account for a new restaurant. Daily cash deposits over a three-month period are close to $9,500.
What are two red flags that indicate possible money laundering or terrorist financing? (Choose two.)
A. The restaurant is located in a different city
B. The daily cash deposits are so close in amount
C. It is a new account that has daily cash deposits
D. The new account demonstrates a steady flow of income
During a law enforcement investigative interview regarding potential money laundering, the suspect starts making assertions and statements that the investigator believes are false.
How should the investigator respond?
A. Inform the suspect that deception is obvious and continue the interview
B. Advise the suspect that the interview will be terminated if there is suspicion of deception
C. Direct the interview in another direction until there is better rapport before returning back to the troubling questions
D. Ask questions of a material nature about the suspected false statements without revealing the suspected deception
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