What are three indicators of money laundering associated with using electronic funds
transfers? - ️️Funds transfers to or from financial secrecy haven without an
apparent business reason.
What should law enforcement provide when asking an institution to keep an account
open? - ️️a writt...
ACAMS-Prep-Mock EXAM
What are three indicators of money laundering associated with using electronic funds
transfers? - ✔️✔️Funds transfers to or from financial secrecy haven without an
apparent business reason.
What should law enforcement provide when asking an institution to keep an account
open? - ✔️✔️a written request on government agency letterhead with the appropriate
signature.
Funds transfers are received or sent from the same person to or from different
accounts.
Payments or receipts with no apparent link to legitimate contract goods or services
On who does the ultimate responsibility for an institution's anti-money laundering
program rest? - ✔️✔️FI board of directors.
Federal law requires all U.S. financial institutions to secure and maintain all records and
supporting documentation used in suspicious activity reporting for how many years? -
✔️✔️5 years
The marketing department presents a business plan targeting individuals holding
important public positions. What are some steps the financial institution should
implement as part of the plan to target such individuals? - ✔️✔️Investigate the source
of funds.
Determine the purpose of the account.
Take all reasonable steps to check the background of the individual based on public
information.
Which statement is true about banking regulatory agencies having the authority to
obtain information from regulated institutions? - ✔️✔️The agencies authority to conduct
examinations negates the need for a warrant or subpoena.
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? - ✔️✔️File a SAR on the
customer
,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? - ✔️✔️Wash Trading
In performing a risk analysis, which factor(s) should a financial institution review? -
✔️✔️Its customer base, location, products and services.
How should a financial institution deter money laundering through new accounts? -
✔️✔️Document the identity of the party opening the account.
Determine the beneficial owners of the account.
Seek to determine the the source of deposited funds.
A commission regotorie would be used in which gateway to obtain information from
another country? - ✔️✔️An FIU request under the EGMONT principles
What are the European Union Directives on Money Laundering? - ✔️✔️They require
members to implement certain laws to prevent money laundering.
The Wolfsberg Principles for Private Banking list circumstances that would require
additional due diligence, including activities that involve which three of these choices? -
✔️✔️High risk countries
High risk activities
Public officials, including those who had positions of public trust.
A compliance officer is looking to update an institution's private bank procedures. What
should be included as recommended by the Wolfsberg AML Principles on Private
Banking? - ✔️✔️Approval of PEPs by at least one person other than the relationship
manager.
Which three circumstances are indicators for defining a customer as required additional
diligence according to the Wolfsberg Principles on Private Banking? - ✔️✔️Persons
residing in and having funds from countries with inadequate AML standards.
Persons engaged in business activities known to be susceptible to money laundering
Persons who receive funds from correspondent banking relationship
What is the Black Market Peso Exchange? - ✔️✔️
, Which customer transaction with a securities dealer would indicate the highest
suspicion of money laundering? - ✔️✔️High level of account activity with very low
levels of securities transactions.
What was cited by the Wolfsberg Group in its Statement on the Suppression of the
Financing of Terrorism as being vulnerable to terrorist financing? - ✔️✔️Alternative
remittance (Hawala)
.
The EGMONT principle of free exchange of information at the FIU level should be
possible on the basis of reciprocity, including spontaneous exchange.
It should be possible for communication between FIUs to take place directly and without
intermediaries.
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? - ✔️✔️While the explanation appears plausible, the institution
should, for a period of time, monitor the account for cash transactions and suspicious
activity.
Which type of transactions present the highest risk? - ✔️✔️foreign exchanges
To guard against acquisition or control of a financial institution by money launderers or
their associates, what should supervisory agencies require? - ✔️✔️Thorough due
diligence on prospective owners
The Board of Directors and the senior management of a financial institution should
ensure that which three are established and followed with regard to an effective AML
program? - ✔️✔️there is a strong compliance program
they are kept informed of all major AML issues
regulatory compliance is made part of all relevant job descriptions
When an institution conducts an internal investigation into an account following a law
enforcement inquiry, it should consider a number of factors to independently determine
if the account should be dosed. Which three considerations should be made when
making the determination about closing an account? - ✔️✔️FI policies and procedures
for closing an account
oral requests by law enforcement agency or prosecutor for the account to be closed.
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