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Why do governments and multi-national bodies impose economic sanctions?
Why do governments and multi-national bodies impose economic sanctions?A . To impede kleptocracyB . To enforce foreign policy objectivesC . To combat an imminent terrorist threatD . To prevent fraudulent international trade transactionsView AnswerAnswer: B Explanation: Reference: https://en.wikipedia.org/wiki/Economic_sanctions
How should the branch manager respond to this activity?
The branch manager notices that a number of customers come in weekly and always use the same teller to process their deposits. The manager notices that the customers and the teller, who are from the same ethnic group, are speaking in a foreign language and every once in a while...
What is a major economic consequence of money laundering through the use of front companies?
What is a major economic consequence of money laundering through the use of front companies?A . Placing more emphasis on manufacturingB . Weakening of the legitimate private sectorC . Creating a more competitive pricing environmentD . Aligning management principles between criminal enterprises and legitimate businessesView AnswerAnswer: B Explanation: Reference: http://people.exeter.ac.uk/watupman/undergrad/rtb/effects2.htm
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 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 red flag should prompt additional transactional review?
A bank compliance officer has implemented enhanced monitoring rules that have identified some unusual activity that may be indicative of human trafficking. Which red flag should prompt additional transactional review?A . Wire transfer activity from countries with significant migrant populationsB . Cash deposits that occur in cities where the customer...
Which aspect of the USA PATRIOT Act impacts foreign financial institutions?
Which aspect of the USA PATRIOT Act impacts foreign financial institutions?A . Requiring enhanced due diligence for foreign shell banksB . Expanding sanctions requirements to aD . financial institution’s foreign branchesE . Expanding the anti-money laundering program requirements to all foreign financial institutionsF . Providing authority to impose special measures...
Is the bank’s existing anti-money laundering training adequate to be delivered to employee of the newly acquired credit card business?
A retail bank has just acquired a credit card business. The bank’s anti-money laundering policy requires that new employees are trained within 30 days of their hire date and refresher training is delivered to all employees on an annual basis. Is the bank’s existing anti-money laundering training adequate to be...
What is an essential element of Know Your Customer (KYC) standards according to the Basel Committee’s Customer Due Diligence for Banks paper?
What is an essential element of Know Your Customer (KYC) standards according to the Basel Committee’s Customer Due Diligence for Banks paper?A . Annual staff trainingB . A customer acceptance policyC . The same KYC requirements must be applied in all casesD . All completed KYC documents must be reviewed...
Which red flag indicates the highest anti-money laundering risk?
The compliance officer at a crowdfunding website is in charge of monitoring new crowdfunding projects. Recently, the number of crowdfunding projects has significantly increased. Which red flag indicates the highest anti-money laundering risk?A . Those with the largest number of donorsB . Projects that get funding within days of their...
