Which of the following statements best describes the money laundering process? - Answer- Illegal money is converted to seemingly legal money.
Which stage of the money laundering process involves carrying out a series of financial transactions to hide the illicit source of the funds? - Answer- La...
AML EXAM QUESTIONS AND ANSWERS
Which of the following statements best describes the money laundering process? - Answer- Illegal money is converted to seemingly legal money.
Which stage of the money laundering process involves carrying out a series of financial transactions to hide the illicit source of the funds? - Answer- Layering
Depositing illicit money in a financial institution is an example of - Answer- Placement
Integration occurs when - Answer- illegal money is mixed with legitimate business earnings
Which of the following is the international standard for combating money laundering activities? - Answer- The FATF's Forty Recommendations
Which of the following is NOT a basic requirement for anti-money laundering programs?
- Answer- Compliance with FATF's Nine Special Recommendations on Terrorist Financing
Basic requirements of anti-money laundering programs include: - Answer- development of policies, procedures, and internal controls designed to detect and prevent money laundering; designation of an executive-level internal compliance officer; creation of an employee training program; and development of an independent audit function.
A suspicious activity report (SAR) must be filed on any transaction that involves at least how much in funds or other assets? - Answer- $5,000
A Currency Transaction Report (CTR) - Answer- is generally required when an insurer receives more than $10,000 in cash in one transaction or in two or more related transactions.
Why are agents and brokers not individually or independently required to create their own anti-money laundering programs? - Answer- Insurers are in the best position to maintain AML programs.
AML programs must focus on covered insurance products because - Answer- they are likely to present a higher degree of risk for money laundering.
Which of the following is NOT a core component of the AML program requirement? - Answer- Membership in the FATF.
three items are identified as core components of the AML program requirement. - Answer- the program must be in writing, approved by senior management, and made available to the US Treasury Department upon request.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller GEEKA. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
