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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...
What is the appropriate compliance control for identifying politically exposed persons (PEPs) according to the Basel Committee’s paper on Customer Due Diligence for Banks?
What is the appropriate compliance control for identifying politically exposed persons (PEPs) according to the Basel Committee’s paper on Customer Due Diligence for Banks?A . Determining that a local figure is a PEPB . Reviewing when a relationship is establishedC . Reviewing relationships at account opening and on a periodic...
Which two red flags should prompt the firm’s compliance officer to take action?
A customer opens a corporate account with a broker-dealer on behalf of several beneficial owners, with a stated long-term investment goal. The customer deposits $25.5 million into the account and three days later transfers $5 million to an overseas bank. Shortly thereafter, the customer begins making numerous purchases of pesos....
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...
What are two reasons physical certificates present a money laundering risk to broker-dealers? (Choose two.)
What are two reasons physical certificates present a money laundering risk to broker-dealers? (Choose two.)A . The trade information on a physical certificate can be easily alteredB . Physical certificates do not expire and may be held by the owner for perpetuityC . There is little information readily available to...
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...
What is an example of the integration stage of money laundering involving a bank or another deposit-taking institution?
What is an example of the integration stage of money laundering involving a bank or another deposit-taking institution?A . Depositing illicit funds into an account set up for a front companyB . Directing third parties to exchange illicit cash for negotiable instrumentsC . Wiring illicit funds from an account at...
What are two requirements with respect to supporting documentation that is used to identify potentially suspicious activity, according to Financial Action Task Force? (Choose two.)
What are two requirements with respect to supporting documentation that is used to identify potentially suspicious activity, according to Financial Action Task Force? (Choose two.)A . It must be retained for at least five yearsB . It must be retained for at least seven yearsC . It must be kept...
What do Financial Action Task Force (FATF)-style regional bodies do for their members to help combat money laundering and terrorist financing?
What do Financial Action Task Force (FATF)-style regional bodies do for their members to help combat money laundering and terrorist financing?A . They provide technical assistance to members in implementing FATF recommendationsB . They assist member countries in penalizing entities that violate FATF standards and recommendationsC . They work with...
Which two transaction types warrant investigation?
In the summer, an institution identifies anti-money laundering concerns regarding a customer’s account activity. The customer, an ice cream parlor, has deposited a lot of checks drawn on banks in foreign countries, sent large number of high dollar international wires to different countries, made cash deposits of a few hundred...
