Money Laundering Test Questions and Answers | Latest Version | 2024/2025 | Already Passed
4 views 0 purchase
Module
Money Laundering
Institution
Money Laundering
Money Laundering Test Questions and
Answers | Latest Version | 2024/2025 |
Already Passed
What is the primary method used to launder money through the layering stage?
- Direct transfer of funds between accounts
- Deposit of cash into bank accounts
- Use of complex financial transaction...
Money Laundering Test Questions and
Answers | Latest Version | 2024/2025 |
Already Passed
What is the primary method used to launder money through the layering stage?
- Direct transfer of funds between accounts
- Deposit of cash into bank accounts
- ✔✔ Use of complex financial transactions to obscure the origins of the funds
- Purchase of high-value items with cash
Which of the following is a common red flag that might indicate money laundering activities?
- Regularly scheduled bank transactions
- ✔✔ Large, unexplained cash deposits or withdrawals
- Consistent monthly bill payments
- Frequent use of online banking services
1
,Which government agency is typically responsible for enforcing AML regulations in the United
What is the purpose of a "know your customer" (KYC) policy?
- To establish customer creditworthiness
- ✔✔ To verify the identity of clients and understand their financial activities
- To offer customer loyalty programs
- To increase the bank's market share
What does the term "smurfing" refer to in the context of money laundering?
- ✔✔ Breaking down large sums of money into smaller, less suspicious amounts
2
,- Using fake identities to open multiple accounts
- Investing in high-risk financial instruments
- Transferring funds across multiple international borders
Which type of financial institution is commonly targeted for money laundering due to its high
volume of transactions?
- Insurance companies
- ✔✔ Money services businesses (MSBs)
- Credit unions
- Mortgage lenders
What is a common method used in trade-based money laundering?
- ✔✔ Over- or under-invoicing for goods and services
- Purchasing and reselling consumer goods
- Transferring funds through online payment platforms
- Using cash to buy precious metals
3
, What role do international financial regulations play in combating money laundering?
- They standardize banking operations globally
- They facilitate easier cross-border transactions
- ✔✔ They help create a consistent framework for monitoring and preventing money laundering
- They increase profits for financial institutions
What is a "shell company" often used for in money laundering schemes?
- To conduct legitimate business activities
- To manage large investment portfolios
- ✔✔ To conceal the true ownership and source of illicit funds
- To provide financial services to a wide range of clients
How can financial institutions mitigate the risk of money laundering through customer due
diligence?
4
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 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 SterlingScores. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £8.10. You're not tied to anything after your purchase.
