Which principles should be included in a FATF-Style Regional Body (FSRB) update? (Choose two.)
An anti-money laundering specialist at a large institution is responsible for information senior management about the status of the anti-money laundering program across the organization.
Which report is the most useful?
How should a financial institution deter money laundering through new accounts? Choose 3 answers
A local law enforcement officer notifies the bank compliance officer that he is working on an insurance fraud scheme that appears to be running transactions using the account of a bank employee. The law enforcement officer refers to a kiting suspicious transaction report filed by the compliance officer and requests further information.
What action should the compliance officer take?
What core objective does the Egmont Group suggest would lead to an effective national Financial Intelligence Unit (FIU)?
A foreign bank maintains a correspondent account in the US. According to an investigation carried out by US authorities, the specific correspondent account seems to have facilitated a transaction involving tainted funds. Which allows the US authorities to seize the funds of the foreign bank held with the US bank?
What are three factors a financial institution should examine with regard to a new customer who is opening up a new account? Choose 3 answers
A client who owns a swimming pool company requests to open 19 accounts at a bank, each with a debit card for its swimming pool technicians. When asked about the purpose of each account, the client explains that each technician needs a separate checking account to purchase pool chemicals.
Which available source could be used in the bank’s internal investigation on this client’s activities?
A law enforcement agent calls a bank anti-money laundering investigator for supporting information about a
suspicious transaction report that was filed the previous month.
How should the investigator respond?
The Wolfsberg Principles for Private Banking list circumstances that would require additional due diligence, including activities that involve which three of these choices?
After review of the financial institution's enterprise-wide anti-money laundering risk assessment, the new compliance officer identifies several deficiencies that need attention.
Which deficiency could lead to the highest potential for unmitigated risk?
Why is the Mutual Legal Assistance Treaty (MLAT) a gateway for international cooperation?
Which action should financial institutions with cross border correspondent banking activity be required to perform according to the Financial Action Task Force 40 Recommendations?
What poses the greatest money laundering risk for a financial institution offering on-line services to customers?
To ensure that an institution’s anti-money laundering program is current, which step should be taken?
In May 2002, the Wolfsberg Principles on Private Banking were revised and included a section that prohibits the use of internal non-client accounts in a manner that would prevent officials from appropriate monitoring movements of funds or keep clients from being linked to the movement of funds on their behalf.
What is another name for these internal, non-client accounts?
A benefit of using bearer shares in corporate formations is that bearer shares are:
An anti-money laundering specialist has just developed and implemented an anti-money laundering program. What is the most effective resource to evaluate the effectiveness of the program?
Which are the two most common controls a financial institution (FI) uses to identify suspicious money-laundering activity? (Choose two.)
An alert has been triggered by a monitoring system and an investigation has been opened. The activity involves significant and multiple cash deposits into a personal account and transferring funds to an offshore bank on the same day. Further investigation reveals this personal account had experienced low levels of activity for the past 6 months and funds are transferred to the account of a charitable organization. Which of the following is the next step that the Compliance Officer should take?
A customer runs an export business for agricultural products. There has been steady growth over the years from sales to the Caribbean region. A sudden increase is noted in this customer's account balances during the last month.
On what grounds should an anti-money laundering specialist prepare a suspicious transaction report?
According to the Financial Crimes Enforcement Network, after an initial suspicious activity report has been filed for a customer, a financial institution must perform a continuing review of the account for a period of how many days?
Which are essential elements of a KYC program identified by the Base1 Committee on Banking Supervision? (Select Two.)
A customer opens a corporate account with a broker-dealer on behalf of several beneficial owners, with a
stated long-term investment goal. The customer deposits $25.5 million into the account and three days later transfers $5 million to an overseas bank. Shortly thereafter, the customer begins making numerous purchases of pesos. The compliance officer receives a query regarding the movement of funds. Within a month of account opening, the customer depletes the account.
Which two red flags should prompt the firm’s compliance officer to take action? (Choose two.)
An institution is about to release a new peer to peer (P2P) funds transfer product to provide much needed remittance services to an under-banked population segment in the country.
The service allows customers to transfer funds through a mobile banking application to individuals worldwide entering only a name and mobile number. The new service charges less than comparable market solutions and offers real time transfer of funds. The customer onboarding process is conducted at branch locations with
identity verification.
Which three present the highest anti-money laundering or sanctions risk and will require controls prior to launch? (Choose three.)
An offshore company is owned by four equal partners that reside in separate jurisdictions. One partner presents an authenticated power of attorney apparently executed by the remaining three partners in his favor and requests that a bank account be opened on behalf of all partners. He needs this done quickly because there is a large deposit pending. The account-opening officer contacts the bank's anti-money laundering officer for advice. Which of the following should the anti-money laundering officer advise as an initial step?
What should a bank do if it suspects one of its employees may be involved in mortgage loan fraud?
Which type of formal agreement occurs between countries that wish to aid each other in the investigation and enforcement of criminal laws?
Which is a key characteristic of the Financial Action Task Force (FATF) Regional Style Bodies for combatting money laundering/terrorist financing?
Which are primary purposes of Financial Action Task Force {FATF)-Style Regional Bodies? (Select Two.)
What are the rules imposed by the Office of Foreign Assets Control (OFAC) for legal entities and persons related to the US? (Select Two.)
Which three criteria does a shell bank meet according to the Wolfsberg Principles on Correspondent Banking? Choose 3 answers.
An immigrant residing in the United States opens a bank account that includes a debit card. Several months
later, the transactional monitoring system identifies small deposits into the account followed by corresponding
ATM withdrawals from a country bordering a conflict zone.
How should the bank respond?
Who has the ultimate responsibility within a bank for ensuring that the bank has a comprehensive and
effective Bank Secrecy Act / anti-money laundering (BSA/AML) program and oversight framework that is
reasonably designed to ensure compliance with applicable regulations?
What was cited by the Wolfsberg Group in its Statement on the Suppression of the Financing of Terrorism as being vulnerable to terrorist financing?
A profitable commercial customer who operates an import-export business has multiple accounts with the same institution at branches m different locations. The customer receives funds from a jurisdiction perceived as highly corrupt according to Transparency International ratings. The customer makes frequent transfers among the accounts and prefers to manage the accounts separately. What should the institution do to mitigate the risk associated with these accounts?
In order to protect investigative materials from disclosure when conducting an internal Investigation of any employee of a financial institution, legal counsel of that financial should________?
Which step should be taken to understand the types of financial institutions to whom the services are being offered when a correspondent bank permits “nested” relationships according to the Wolfsberg Group?
A bank receives a wire transfer that references the sale of equipment to a sanctioned company. The bank's operations team removes the sanctioned company reference and allows the wire transfer to process. This is a description of what type of activity?
An institution receives a request for credit from a local company that has been a client for many years. The information provided by the company indicates that its assets have increased substantially with the addition of several new subsidiaries. Further research performed by the institution indicates the new subsidiaries are recently created shell companies.
Could this indicate potential money laundering?
What is the primary action a financial institution should take before formulating its anti-money laundering program?
Which statements regarding the USA PATRIOT ACT best describe key aspects that have extraterritorial reach? (Choose three.)
What is a tool governments and multi-national bodies can use to prevent the proliferation of weapons of mass destruction?
A company service provider in Country A sets up a corporate structure for a client from Country B, which is known for corruption. The corporate structure includes a holding company in Country A with a bank account in one of the international banks located there.
During on-boarding, the client's wealth was estimated at $7 million. Shortly thereafter, the client's father became president of Country B. During a routine client review two years later, it was identified that client's wealth had grown to $510 million.
What are two red flags that indicate money laundering or financial terrorism? (Choose two.)
Bank A is a non-United States (U.S.) bank that has $5 million in a correspondent account at a bank in New York City. The Worldwide Terrorist Syndicate (WTS) has $1 million in its account at a non-US branch of Bank A. The U.S. government has initiated forfeiture action against the WTS.
Which potential action can the U.S. take under the USA PATRIOT ACT pursuant to the issuance seizure warrant?
According to the Second European Union Money Laundering Directive, what may knowledge of criminal conduct be inferred from?
How should a compliance officer respond to law enforcement agencies' request for information on a customer undergoing an investigation?
A compliance officer for a casino may suspect money laundering if an individual:
In which two ways do Financial Action Task Force-style regional bodies influence anti-money laundering and terrorist financing standards within their respective regions? (Choose two.)
Which two steps should a financial institution take when it receives a law enforcement request to keep an account open that may be associated with suspicious or criminal activity? (Choose two.)
How can a ‘free-look provision’ as part of a life insurance policy help criminals to launder money?
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?
Which unusual or suspicious activity by a financial institution's (FI's) employee requires additional investigation and scrutiny?
The new compliance officer has reviewed the bank’s anti-money laundering training program. The program consists of online training for all new employees within 30 days of hire date and annual refresher training to all employees. In addition, there is specialized training for areas that deal with higher risk products and customers.
Over the last year, there have been no regulatory changes and no new products or services have been introduced. The compliance officer wants to propose to the board of directors that the annual refresher training is still current and can be delivered unchanged to all employees.
Which two critical pieces of information could be missed by taking this approach? (Choose two.)
What should senior management do in order to promote a culture of anti-money laundering compliance?
A law enforcement agency is reviewing a suspicious transaction report (STR) filed by a financial institution for suspicious activity on a client's account.
Subsequently, the agency requests further information.
Which supporting documentation might the law enforcement agency request from the institution to facilitate its investigation?
What is the term for trading through multiple accounts, where an individual generates offsetting profits and losses and transfers of positions through accounts that do not appear to be commonly controlled?
Which response represents a high-level principle for FATF-Style Regional Bodies (FSRB)?
A financial institution has expanded its scope of services so that it is attracting the business of politically exposed persons (PEPs) who had previously never been part of the customer base.
Which two courses of action should the compliance officer include in the institution’s procedures for considering PEPs as customers? (Choose two.)
A comprehensive set of risk-based guidelines for maintaining business relationships is being developed.
Which situation indicates that the institution should terminate the relationship with a client?
A bank sells reloadable open-loop prepaid cards to both customers and non-customers.
What is a red flag associated with these cards that may indicate money laundering?
One key aspect of promoting an enterprise-wide compliance culture within a financial institution (FI) is that the:
A Money Laundering Reporting Officer's (MLRO) lack of action led to deficiencies in the bank's AML program and a civil monetary penalty being levied against the MLRO. Why was this direct action taken against the MLRO?
When implementing a risk-based approach related to casinos, which risks are related to the customer as an individual? (Choose two.)
Which two actions should Financial Intelligence Units (FIUs) take when submitting a request to another FIU? (Choose two.)
Which statement best describes a key aspect of the AML Directive of the EU regarding business relationships and transactions with high-risk third countries?
Which is a key reason why a financial institution (FI) conducts an enterprise-wide AML risk assessment?
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 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?
In reviewing recent activity, a compliance officer for a money transmitter that several customers are each
remitting the same amount of money but much more frequently.
How should the institution respond?
The USA PATRIOT Act requires United States (U.S.) financial institutions to collect certain information from non-U.S. banks that hold a correspondent account.
Which two pieces of information must a non-U.S. bank provide to its U.S. correspondent to enable them to comply with this requirement? (Choose two.)
Which scenario is closest to the definition of money laundering the United Nations Convention against Transnational Organized Crime and Other Protocols provided?
What are two requirements for monitoring and reporting suspicious activity for correspondent banking
according to the Wolfsberg Principles? (Choose two.)
What is an essential element of Know Your Customer (KYC) standards according to the Basel Committee’s
Customer Due Diligence for Banks paper?
An anti-money laundering specialist has been asked to establish a compliance program to detect and prevent money laundering and terrorist financing. Which of the following should the anti-money laundering specialist consider in developing the program?
1. Funds for money laundering and terrorist financing are derived from illegal sources.
2. Related practices are used to conceal the nature of the funds.
3. The source and disposition of funds are similar.
4. Similar techniques are used to move funds.
What is an example of the integration stage of money laundering involving a bank or another deposit-taking institution?
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.)
Which two individuals are ordinarily beneficial owners of a private banking account according to the Wolfsberg Anti-Money Laundering Principles for Private Banking? (Choose two.)
A bank located in Arizona is considering a loan application for a new client. The collateral for the loan is a
property in Florida.
The loan will be in the name of a limited company (LLC) whose ownership is not disclosed to the bank. The
LLC was established by a New York-based attorney.
The loan will be repaid by the LLC in monthly wire transfers of $9,000 which is more than the required monthly
payment.
Which aspect indicates potential for money laundering?
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.)
When an institution receives a document request from law enforcement with regard to an STR that the institution has filed, what should institution do?
Which requirement is included in the Fourth European Union Directive on money laundering?
An AML compliance officer receives notice of government update including the names of the latest terrorists sanctioned by the United Nations Security Council. Which would be the most appropriate step to take?
A compliance officer provides an overview of the bank’s anti-money laundering program to a group of new
tellers during employee orientation.
Which training element should be delivered to this audience?
A compliance officer identifies a potentially significant risk in a popular financial product. Further investigation
reveals there is no mitigating control.
Which course of action should the compliance officer take?
An institution has made the decision to exit a client relationship due to anti-money laundering concerns. Prior
to starting the close out process, the institution receives a written request from a law enforcement agency to
keep the account open. The client is the subject of an ongoing investigation and law enforcement wants the
institution to continue to monitor the account and report any suspicious activity.
What is primary consideration the institution should keep in mind when deciding whether to agree to this
request?
A foreign politically exposed person (PEP) requests to add a beneficiary to a file insurance policy.
How should the request be processed to mitigate risk?
Which three elements should be considered in an institution’s enhanced due diligence process to assure itself that it has secured sufficient understanding of its higher risk respondent bank customers according to the Wolfsberg Principles on Correspondent Banking?
A compliance officer learns from an Information Technology (IT) source of a potential new financial service being discussed by the new product approval committee.
What is the correct next course of action?
An anti-money laundering specialist notes a significant reduction in suspicious transaction report filings at a particular branch. Which of the following actions is most appropriate?
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?
With which of the following should an anti-money laundering officer coordinate when implementing anew hire screening 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?
What are two legal risks of having inadequate privacy policies and procedures? (Choose two.)
A client is a wholesale auto business that operates as a used car lot. The client regularly ships vehicles
internationally. In a four-month period, the client received wires totaling $ 1,250,000 from a dealer in Benin in
West AfricA. All wires originated from Benin and were in increments of $50,000.
Account debits made to the account were payable to various transport companies. All incoming checks
reference various vehicles purchased. Dock shipping receipts produced by the client to support account
activity identify the vehicles but cannot easily be tied to the wires receives.
What is the suspicious behavior?
A division anti-money laundering officer for a financial institution has been conducting a monthly self-assessment.
The officer reviews the accounts opened for compliance with a long standing Know Your Customer policy.
The self-assessment for the latest month shows a significant increase in compliance deficiencies for the first time in more than a year.
Which of the following is the next course of action for the anti-money laundering officer to take?
Which method to launder money through deposit-taking institutions is closely associated with international
trade?
A client opens a bank account for a multi-level marketing company. The debits and credits of the account are
numerous and very involved. Further, there are a lot of international transactions. Also, funds are being tunneled from the company to the client’s personal account in another jurisdiction.
Which two steps should law enforcement take in investigating this matter? (Choose two.)
A recent anti-money laundering audit revealed several regulatory reporting violations and lapses with the
organization’s anti-money laundering policy. As a result, the compliance officer has created a follow-up matrix
to document progress in correcting the identified deficiencies.
To whom should the compliance officer provide regular updates of corrective action to help ensure the
appropriate oversight?
An employee hears a colleague on the telephone with a customer giving advice on how to ensure that a
suspicious transaction report will not be filed as a result of a future transaction.
What action should the employee take?
What are two requirements of United States financial institutions when conducting business with an
international institution as a result of the USA PATRIOT Act? (Choose two.)
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?
Which function provided by lawyers can be useful to a potential money launderer as documented by FATF in its typology report 2000-2001? Choose 3 answers
The branch manager calls the compliance officer and informs her that a law enforcement officer has just left
the branch and was asking a lot of QUESTION NO:s and left a business card.
What should the compliance officer do?
A businessman requests a European private bank to open a numbered or alternate name account. According to the Basel Committee on Banking Supervision principles, which of the following is the most important question the banker should ask?
A foreign bank operating under an offshore license wants to open a correspondent account with a United
States (U.S.) bank. The foreign bank plans to provide payable through account services to some of its
customers.
What must the foreign bank provide to the U.S. bank under the USA PATRIOT Act?
What is the appropriate compliance control for identifying politically exposed persons (PEPs) according to the Basel Committee’s paper on Customer Due Diligence for Banks?
An organization’s automated surveillance system identifies large fluctuations in customer activity. As a result of
an audit, the compliance officer is informed that the system is not generating alerts when activity is
consistently abnormal over a long period of time. Currently the organization is evaluating new alert scenarios
in an attempt to address this problem.
Which type of scenario is helpful in mitigating this weakness?
A European Union (EU) bank has a correspondent banking relationship with a U.S. bank. Under USA PATRIOT Act Section 311, the U.S. government has enacted special measures against a designated entity that has a payable-through account with the EU bank. Which of the following actions might the U.S. bank be required to take regarding the EU bank's services for the designated entity?
Under requirements for correspondent accounts in the USA PATRIOT Act, the word "certification" refers to a written representation by a
What is the goal of the Egmont Group in providing a forum for Financial Intelligence Units (FIUs) around the
world?
A compliance officer at a small community bank has been asked to review existing customer onboarding
policies and procedures to ensure they adequately address anti-money laundering risks.
How should customer due diligence be implemented?
Which practices are dealers in antiques, precious metals, precious stones, jewelry, and art advised to follow to reduce the element of money laundering risk? Choose 3 answers
Which two statements in the Wolfsberg Group’s “Suppression of the Financing of Terrorism” define the role financial institutions should play in the fight against terrorism? (Choose two.)
A politically exposed person (PEP) maintains an account at a bank. Last month a money laundering analyst filed a suspicious transaction report about unusual wire deposits originated by unknown individuals in the home country of the official.
To whom should this situation be escalated?
In which situation can money laundering adversely affect a country’s currencies and interest rates due to launderers investing dirty funds?
Which is an objective of the Financial Action Task Force (FATF)-Style Regional Bodies (FSRBs)?
Which are characteristics of Mutual Legal Assistance Treaties (MLATs)? (Select Three.)
Money laundering red flags associated with money service businesses include: (Select Two.)
Which information should be gathered as part of enhanced due diligence (EDD) for a high-risk customer?
Which reputations risk consequence could a financial entity face for violating AML laws?
When a financial institution is requested to provide data and information to a law enforcement agency for matters related to financing of terrorism, assistance:
An individual opens an e-account in an off-shore gambling website using non-documentary verification and creates an e-wallet on a mobile device. In order to add funds to the account, the individual uses a credit card, wire transfers, cryptocurrency, and a money service business. Which source of money represents more risk of money laundering?
Which red flags should be considered prior to establishing a relationship with a third party? (Select Two.)
A company is endorsing the execution of terrorism through different activities, such as developing content for pro-terrorist television messages, encouraging the support of terrorist activities via the web, advertising the use of cryptocurrencies, and paying producers and reporters for television and web messaging. What specific action should be considered financing of terrorism?
A large cash deposit most likely reflects money laundering when it is
1. from a customer who has never conducted a transaction in cash before.
2. transacted in segments smaller than the reporting thresholds at various times during the day.
3. followed by an immediate wire transfer to an offshore secrecy haven.
4. by a customer who operates a cash-based business.
Which product type is subject to US extra jurisdictional reach over non-US banks and non-US persons under the USA PATRIOT Act?
An anti-money laundering consultant audits a bank's current anti-money laundering policies, procedures and controls. The bank serves high-income, high net-worth clients who include non-residents and offshore businesses. During a review of the custom list, the anti-money laundering consultant determines that he and the bank have mutual clients. The bank's written anti-money laundering program includes a process for the bank to establish the identity of the person with whom they conduct business, but does not address monitoring of customer account activity.
The consultant should recommend the bank:
How should law enforcement obtain documentation from an institution when suspicious activity was identified? (Choose two.)
A relationship manager in a bank has had a private banking customer for 10 years. The customer has business accounts and investments and seeks advice on the creation of a company overseas. The relationship manager refers the customer to the commercial banking manager and vouches for the customer. Which of the following risk factors is the most important?
An accounting firm opened an account at a bank that is intended to be used as the operational account for the business. After a few months, a comprehensive review of the account was triggered due to unusual activity on the account. Which most likely triggered the review?
Which of the following activities conducted at a financial institution is the strongest example of avoiding reporting thresholds?
A new customer has just been onboarded in a securities firm. After a few weeks, there are unusual trading patterns that are being flagged. Which pattern is most concerning to the compliance officer?
A company contracts a life insurance policy with a savings feature of 100,000 USD for an individual in a high-risk country. The policy receives monthly cash deposits from unknown third parties. A minimal part of the deposit is invested and the rest is withdrawn by the end of the month. Which are the circumstances to consider as a risk for money laundering? (Select Two.)
How does the Asian/Pacific Financial Action Task Force
The marketing department presents to an anti-money laundering specialist a business plan targeting individuals holding important public positions. In addition to obtaining the proper identification and basic information from these customers, what else should the anti-money laundering specialist recommend a financial institution do to check the background and conduct enhanced due diligence based on public information?
1. Determine if a client appears on the Basel Committee on Banking Supervision's list of public officials.
2. Investigate the source of funds.
3. Identify people and companies that are clearly related.
4. Identify a person fully, including their political history.
Three individuals enter a casino and use cash to purchase chips worth 20,000 USD. The trio uses 200 USD in chips to play games and then combine their funds to request a casino cheque. What is the potential red flag that alludes to money laundering?
Which statement is true regarding the Financial Action Task Force standards for suspicious activity reports (SARs) information sharing within a financial group?
A law enforcement agency submits several requests to a financial institution. Which request is legitimate and requires the bank to respond?
An EU Trust and Company Service Provider (TCSP) analyst notices some unusual activity while looking through a customer's financial statements and detailed general ledger. The customer is in the business of importing and exporting machineries. Which transaction indicator warrants further escalation to the compliance officer?
What reputational risk consequence could a financial entity face for violating AML laws?
Under the Egmont Group Principles, information exchange among financial intelligence units (FlUs) should be conducted:
A customer of a bank is an established art dealer. Within the KYC due diligence processes, which constitutes a triggering event that requires ongoing due diligence on this client?
One area of responsibility for the Board of Directors when implementing a successful AML program is to:
Which private banking situation requires due diligence actions to be implemented according to the AML principles of the Wolfsberg group?
Which methods are typically used to launder money using insurance companies? (Choose two.)
A compliance analyst has recently investigated an account where money was deposited in amounts below the reporting limit and almost entirely withdrawn in a foreign country. Which type of money laundering is the compliance analyst potentially identifying?
An example of an external factor that will affect an organization's AML risk is:
Which should authorities do to safeguard AML information exchanged with other countries?
Law enforcement is conducting an investigation of a financial institution (FI) and has submitted an overly broad and unduly intrusive request. Which is a Fl's most appropriate response?
How does the Egmont Group assist financial intelligence unit members to accomplish their goals? (Select Three.)
A bank’s transaction surveillance system triggers an alert for a deposit of 250.000 USO into a client's account. According to the bank's KYC information, the client works for a financial advisory firm, and earns approximately 100,000 USD per year. Which actions should be taken? (Select Three.)
File the suspicious transaction immediately to the financial intelligence unit.
Which are red flags indicating potential engagement of a bank employee in money laundering? (Select Two.)
A law enforcement agency is conducting an investigation of a financial institution (Fl). How should the Fl respond to the law enforcement agency's requests?
An AML specialist at a financial institution is presented with a search warrant. Which actions should be taken to comply with the search? (Select Two.)
A compliance officer of a financial institution is reviewing a payment for sanctions compliance between two parties in Europe and Asia. The payment is in Euros and involves the provision of services to a company located in a jurisdiction subject to Office of Foreign Assets Control secondary sanctions. Which factor is most important in determining the compliance officer's response?
While conducting a review of a medium-risk customer, an analyst noted that a newly added authorized signatory is a foreign politically exposed person (PEP). Which is the appropriate next step for the analyst to take?
A Trust and Company Service Provider (TCSP) providing services should have policies and procedures in place to identify critical information of the:
A senior government official is trying to open an account in a financial institution (FI) that operates in a different country from where the official is domiciled. The official is using an asset manager intermediary to represent them. According to the Wolfsberg Group, which next steps should the FI take regarding the opening of the account? (Select Three.)
A large financial institution (Fl) is considering expanding business to an area of the world with weak AML laws. The risk-based assessment indicates that the location will increase the Fl's risk appetite beyond the stated acceptable amount. Which risk factors should be used to identify the priority of the Fl?
Which principles of the Egmont Group of Financial Intelligence Units (Fills) are aimed at maximizing cooperation between FlUs to more effectively combat money laundering? (Select Two.)
When deficiencies are identified in the Financial Action Task Force (FATF) mutual evaluation report, the assessed country needs to:
The owner of a local retail store makes multiple deposits daily at a bank. When the owner makes these deposits, it is noted that he goes to different tellers (cashiers). The deposits consist of cash in amounts less than the currency reporting threshold. Which of the following best describes this activity?