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What action should the employee take?
An employee hears a colleague on the telephone with a customer giving advice on how to ensure that a suspicious transaction report will not be filed as a result of a future transaction. What action should the employee take?A . Report the conversation to the local policeB . Report the...
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...
In which two ways does a government Financial Intelligence Unit interact with public and private sectors? (Choose two.)
In which two ways does a government Financial Intelligence Unit interact with public and private sectors? (Choose two.)A . It governs the methods of investigation used by competent authoritiesB . It mediates disputes between financial institutions and investigative authoritiesC . It receives and analyzes disclosures filed by financial and non-bank...
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 red flags that indicate how trade-based money laundering could be occurring in this instance?
An automotive parts company in South America sends multiple $500,000 wire transfers per week to ABC Holdings Ltd. in Asia referencing payment for silk flower shipments. Research reveals Sunrise Holdings, Ltd is registered in the British Virgin Islands with no available ownership information. What are two red flags that indicate...
What is the goal of the Egmont Group in providing a forum for Financial Intelligence Units (FIUs) around the world?
What is the goal of the Egmont Group in providing a forum for Financial Intelligence Units (FIUs) around the world?A . To improve international laws to combat money laundering and the financing of terrorism and foster the implementation of domestic programs.B . To provide a forum for FIUs to improve...
What is a primary consideration the institution should keep in mind when deciding whether to agree to this request?
An institution has made the decision to exit a client relationship due to anti-money laundering concerns. Prior to starting the close out process, the institution receives a written request from a law enforcement agency to keep the account open. The client is the subject of an ongoing investigation and law...
To whom should this situation be escalated?
A politically exposed person (PEP) maintains an account at a bank. Last month a money laundering analyst filed a suspicious transaction report about unusual wire deposits originated by unknown individuals in the home country of the official. To whom should this situation be escalated?A . The board of directorsB ....
What are two legal risks of having inadequate privacy policies and procedures? (Choose two.)
What are two legal risks of having inadequate privacy policies and procedures? (Choose two.)A . Diminished reputationB . Industry of regulatory sanctionsC . Charges of deceptive business practicesD . Higher marketing and public relations costsView AnswerAnswer: BC
To whom should the investigator escalate these concerns?
Upon a routine account review a money laundering investigator identified a number of large round dollar wire transfer deposits into a business account owned by a local auto repair shop. The wire transfers all originated from a country that is a known financial secrecy haven with poor anti-money laundering controls....
