Select 3 reasons below that are reasons for why Charities/Non-Profit/NGOS are vulnerable to Terrorist Financing? (SELECT 3)
A . Heavily regulated
B. Local presence
C. Receiving considerable funds from unknown sources
D. Exposed to areas that are terrorist friendly
E. Cash-Intensive
Answer: C,D,E
What is an example of reputational risk below?
A . Costs associated with having to increase the Anti-Money Laundering Surveillance at your company
B. Terrorists were caught using the bank to fund an attack in the Middle East
C. The organization operates in a country that is on a FATF non-compliance list.
D. Paying back customers after the institution realized they overcharged them on fees.
Answer: B
In Transaction Monitoring what are alerts generated incorrectly by the system due to inefficiencies?
A . False Negatives
B. True Match
C. False Match
D. False Positives
Answer: D
Letters of Credit are a well known __________ Product?
A . Finance
B. Credit
C. Trade Finance
D. Fixed-Income
Answer: C
What are some reasons to terminate the relationship with a customer? (SELECT 2)
A . Activity looks suspicious
B. New product has been added
C. Change in Management
D. Risk appetite has changed.
Answer: A,D
While doing investigation on some adverse media checks that came up for an individual named Joey there were a few news stories connected to this individual.
Which are AML related and should be escalated? (SELECT 2)
A . Joey has several derogatory credit problems and a score of 630
B. Joey has been convicted of illegally distributing a banned drug
C. Joey was arrested in Colombia for arriving at the airport with more than 10 thousand USD in cash.
D. Joey had his house foreclosed on him two years ago.
Answer: B,C
Why is Artificial Intelligence and Machine Learning becoming so big with Transaction Monitoring?
A . They are inexpensive and cost effective
B. They can be used interchangeably for different results.
C. Can eliminate or reduce false positives, thus reducing large workloads automatically.
D. AI and ML can help find more information related to financial crime and more effective transaction monitoring alerts.
Answer: C
In terms of Virtual Currency, what does FIAT mean?
A . Privately Owned Issued Money
B. Blockchain Issued Money
C. Average Italian Car
D. Government Issued Money
Answer: D
What are some legal reasons that trusts can be used? (SELECT 3)
A . Tax Avoidance
B. Succession and Estate Planning,
C. Tax Evasion
D. Promote good causes
E. Transfer of ownership at speed.
Answer: B,C,D
An Transaction Monitoring Analyst has found out that a company in which the alert has been generated from is using bearer shares for the formation of the company.
Is this client allowed in the United States?
A . Yes
B. No
C. Depends on the jurisdiction of the entity
Answer: B