A bank compliance officer discovers cash deposit activity inconsistent with the expected and historical cash activity within the personal accounts of the chairman of the board. The cash activity appears structured to avoid the local legal filing requirements for large cash transactions, and a suspicious transaction report (STR) was filed.
How should the compliance officer report the filing of the STR to the board of directors without revealing the existence of the filing to the subject?
A. Inform the legal counsel of the bank
B. Follow the financial institution's established STR reporting policy
C. Notify the financial institution's regulator to disclose the activity
D. The compliance officer and the chief executive officer should jointly interview the chairman
A bank's anti-money laundering section receives an anonymous tip that a customer might be engaging in possible money laundering. Which two facts should be considered during the course of an investigation into this matter? (Choose two.)
A. The customer has had a long-standing account at the bank
B. The customer in on the exempt list for currency transaction reporting requirements
C. The customer is issuing a number of wires to several relatively high-risk jurisdictions
D. The customer's account has had a large volume of activity, but the month-end balance is usually low
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. Compare the wire transaction as it enters and after it leaves the bank
B. Check for suspicious phrases usually used to conceal originator or beneficiary identity
C. Identify large incoming wire transactions received on behalf of a foreign client with no explicit reason
D. Identify wire transaction activity to or from a financial institution located in a higher risk jurisdiction
Which method is used to launder money in casinos?
A. Purchase chips with cash and play at a table
B. Purchase chips with cash and redeem for cash
C. Purchase chips with cash and redeem for a check
D. Purchase chips with cash and sell to another person for cash
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. They require member countries to develop statistical metrics over money laundering and terrorist financing crimes
B. They require participating financial institutions of their members to file suspicious transaction reports to the regional body
C. They conduct global research on money laundering and terrorist financing trends and report their findings in their own typologies report
D. They conduct regional-level research and analysis of the money laundering and terrorist financing methods and trends using standards and templates used for FATF typologies reports
A bank operates in multiple countries and offers a variety of products and services. The compliance officer recently joined the bank and wants to better understand the inherent level of anti-money laundering risk across the entire organization. Which two factors should be considered? (Choose two.)
A. The Transaction Monitoring program
B. The Customer Due Diligence program
C. Countries that the bank operates in
D. Products and services offered by the bank
A bank is preparing for its anti-money laundering independent review, which is performed every two years under the direction of the compliance officer. The bank's corporate audit department will conduct the review. The compliance officer will review the final report before it is released to the Board of Directors.
What is the issue with this situation?
A. Independent reviews must be performed annually
B. The review must be performed by a group outside of the bank
C. The final report must be presented directly to the board of directors
D. There is a conflict of interest with the management of the review process
Law enforcement submitted a request to a bank for information regarding one of its customers. How should the bank respond according to Financial Action Task Force Guidance?
A. Provide all information requested to support the investigation
B. Ensure that the request will not violate any local privacy regulations or legislation
C. Ensure the information is necessary to the investigation before responding to the request
D. Contact the customer informing the person of the investigation to ensure the bank provides correct information
How should a financial institution respond to a verbal request from a law enforcement agency to keep an account open to assist in an investigation?
A. Agree to keep the account open
B. Request a subpoena to maintain the account
C. Request a letter on the agency's letterhead
D. Request a search warrant from the local court
What is a key objective of the Egmont Group?
A. To find ways to promote the development of Financial Intelligence Units and the sharing of expertise.
B. To safeguard the financial system from illicit use and combat money laundering and promote national security.
C. To issue binding standards that establish consistently operated Financial Intelligence Units in member jurisdictions.
D. To provide best practices for financial institutions on how to report suspicious activity to best share the information with law enforcement.
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