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What are two red flags that indicate money laundering?
A customer brings $15,000 worth of chips into a casino and plays various games. The customer redeems all the remaining chips and requests a wire transfer of the proceeds to an unrelated third party. What are two red flags that indicate money laundering? (Choose two.)A . Customer redeeming all remaining...
Which two steps should be taken to trace funds through the bank to assist law enforcement in their investigation?
A United States (U.S.) bank was recently alerted by law enforcement of an increase in sale of large denomination U.S. bank notes to casas de cambio. They suspect that a Mexican syndicate is operating a money laundering scheme in the bank’s jurisdiction. Which two steps should be taken to trace...
Which two things must the vice president acquire under the USA PATRIOT Act?
The vice president of the foreign correspondent banking department at a large United States bank has been notified that a foreign bank with an offshore license wants to open a correspondent account. Which two things must the vice president acquire under the USA PATRIOT Act? (Choose two.)A . A list...
What is a key risk associated with Correspondent Accounts according to the Basel Customer Due Diligence paper?
What is a key risk associated with Correspondent Accounts according to the Basel Customer Due Diligence paper?A . It is not used on a daily basisB . The service fees are insufficient to cover the cost of managing the accountC . The respondent bank’s customer acceptance and know your customer...
How should the institution respond?
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?A . File a suspicious transaction reportB . Instruct the tellers not to process remittances for these customers in the...
Which supporting documentation might the law enforcement agency request from the institution to facilitate its investigation?
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?A . Previously filed STRs on...
Which type of scenario is helpful in mitigating this weakness?
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...
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.)
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 . Financial institutions need to assist competent authorities in fighting terrorist financing through prevention, detection and information sharing.B . Financial institutions need to...
Which three methods are commonly used by an accountant to launder money? (Choose three.)
Which three methods are commonly used by an accountant to launder money? (Choose three.)A . Representing a client in courtB . Understating income to take a tax lossC . Overstating income to hide excess cashD . Acting as a conduit for transferring cash between accountsE . Acting as a designee...
Which two aspects should be included in the policy in respect of intermediaries to align it with the Wolfsberg Anti-Money Laundering Principles for Private Banking?
The compliance officer for a private bank has been tasked with writing a policy on how the bank will deal with intermediaries. Which two aspects should be included in the policy in respect of intermediaries to align it with the Wolfsberg Anti-Money Laundering Principles for Private Banking? (Choose two.)A ....
