What are three elements of a sound Customer Due Diligence Program?
A. Determination of what type ofcustomer the financial institution will accept
B. Training as to how and to what extent to identify prospective customers
C. Obtaining date of birth and address of a prospective customer
D. Determination of who in the institution should be assigned to theprospective customer as a liaison
On who does the ultimate responsibility for an institution's anti-money laundering program rest?
A. The designated AML Compliance Officer
B. The institution's Board of Directors
C. All employees with customer contact
D. The government regulator examining the AML program
Which statement about U.S. Specified Unlawful Activities (SUA) is true?
A. At least one SUA must be proven in order to pursue a moneylaundering conviction
B. SUAs are generally limited to a small sub-set of crimes
C. In order to secure a conviction, the defendant must be proven to have known the precise nature of the source of funds
D. SUAs are limited to crimes that occur within the borders of the U.S. and its territories and possessions
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
A. Basel Committee on Banking Supervision's capital adequacy requirements for the host country
B. A training program for senior management and staff
C. An anti-money laundering compliance program, internal audit program, and procedure manual
D. Compliance requirement of host and charting countries
A customer comes into the bank and appears to be ill-at-ease waiting in the teller line. When the customer gets to the teller, he become exceedingly nervous and asks for a large cashier's check to be cashed and disbursed to him in $100 bills.
What should the teller do after completing the transaction?
A. Confer with the bank' s account going forward
B. File a SAR on thecustomer
C. Monitor the customer's account going forward
D. File a CTR on the customer by the end of the day
How can a financial institution verify the nature and purpose of a business and its legitimacy?
A. By reviewing a copy of the corporation's latest audited reports and accounts
B. By undertaking a company search or other commercial inquires to see that the institution has not been, or is not in the process of being dissolved of terminated
C. By reviewing the company's website
D. Byusing an independent information verification process, such as by accessing public and private databases
Which three criteria does a shell bank meet according to the Wolfsberg Principles on Correspondent Banking? Choose 3 answers.
A. It does not conduct business at a fixed address in a jurisdiction in which it is authorized to conduct business.
B. It does not employ one or more individuals at its fixed address where it is authorized to conduct business or maintain operatingrecords at that address
C. It is not subject to AML laws that require it to implement an AML program
D. It is not subject to inspection by the banking authority that licensed it to conduct banking activities
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?
A. Close the account
B. File a suspicious transaction report with the Financial Intelligence Unit
C. Notify the anti-money laundering specialist of his bank, but do notcall the customer
D. Offer the customer a more secure method of depositing in the hope of learning something more during the conversation
An account officer who maintains an excellent relationship with the finance manager for a correspondent bank customer learns that many records for the correspondent bank have been requested by law enforcement. In the interest of maintaining a good relationship with the customer, the account officer sets up a meeting to discuss the legal request with the customer. The account officer intends to discuss points related to the investigation during the meeting. What should an anti-money laundering specialist recommend?
A. Discuss all the points being investigated by law enforcement to ensure the correspondent bank is well prepared when approached
B. Let the account manager's manager know what conversations have taken place with the customer and document the account file accordingly
C. Limit discussions about the investigation with the customer and by satisfied that the account manager has provided proper notice to the customer
D. Cancelled the meeting as he has already behaved inappropriately by alerting to the investigation
A customer comes into a financial institution and deposits a large amount of cash. He has never done that before. When asked about the deposit, he indicates he recently sold a used car and received cash.
He does not trust forms of payment and is wary of counterfeit money orders. What should the bank do?
A. The bank has received a plausible explanation, so it should do nothing
B. While the explanation appears plausible, the institution should, for a period of time, monitor the account for cash transactions and suspicious activity
C. While the explanation may be plausible, the institute should nonetheless file a Suspicious TransactionReport to protect itself
D. The institution should close the account before another issues arise
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