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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...
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 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...
How should the request be processed to mitigate risk?
A foreign politically exposed person (PEP) requests to add a beneficiary to a life insurance policy. How should the request be processed to mitigate risk?A . Perform due diligence on the beneficiaryB . Determine the source of wealth and source of fundsC . Decline the request if the beneficiary is...
Which method to launder money through deposit-taking institutions is closely associated with international trade?
Which method to launder money through deposit-taking institutions is closely associated with international trade?A . Forming a shell companyB . Using Black Market Peso ExchangeC . Structuring cash deposits/withdrawalsD . Investing in legitimate businesses with illicit fundsView AnswerAnswer: B Explanation: Reference: http://fraudaid.com/Dictionary-of-Financial-Scam-Terms/black_market_peso_exchange.htm
What should the compliance officer do?
The branch manager calls the compliance officer and informs her that a law enforcement officer has just left the branch and was asking a lot of questions and left a business card. What should the compliance officer do?A . File a suspicious transaction reportB . Follow up to verify that...
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...
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 should stop the agent from discussing this potential purchase further?
A U.K. real estate agent has three foreign clients interested in purchasing an apartment building, valued at £30 million, in the outskirts of London as an investment property. The clients are not willing to have their names provided to the bank. The clients want the purchase to be made in...
Which insurance product is particularly vulnerable to money laundering?
Which insurance product is particularly vulnerable to money laundering?A . AnnuityB . CasualtyC . CollateralD . Regulated pensionView AnswerAnswer: A
