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?
Answer : C
What is a major economic consequence of money laundering through the use of front companies?
Answer : B
Reference:
http://people.exeter.ac.uk/watupman/undergrad/rtb/effects2.htm
An institution is about to release a new peer to peer (P2P) funds transfer product to provide much needed remittance services to an under-banked population segment in the country.
The service allows customers to transfer funds through a mobile banking application to individuals worldwide entering only a name and mobile number. The new service charges less than comparable market solutions and offers real time transfer of funds. The customer onboarding process is conducted at branch locations with identity verification.
Which three present the highest anti-money laundering or sanctions risk and will require controls prior to launch? (Choose three.)
Answer : ACE
What is true regarding disclosure to a law enforcement agency by a financial institution of the supporting documentation for a suspicious transaction report?
Answer : C
Reference:
https://www.sec.gov/about/offices/ocie/aml2007/fin-2007-g003.pdf
As a result of an audit, a policy exception was identified that had been approved by the compliance officer. The auditor determined that the policy exception is a violation of a regulatory requirement.
What should the auditor do?
Answer : B
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?
Answer : A
Which requirement is included in the Fourth European Union Directive on money laundering?
Answer : C
Reference:
https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32018L0843&from=EN
A bank maintains a relationship with a customer who owns a small bakery business.
Which customer action indicates potential money laundering?
Answer : B
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 the names of three private companies for privacy reasons. The plan is to wire the funds into an account held in the name of another private company at a bank in London.
Which red flag should stop the agent from discussing this potential purchase further?
Answer : C
What is a key objective of the Egmont Group?
Answer : B
Reference:
https://egmontgroup.org/en
The compliance officer for a bank is reviewing on-boarding documents for a new business account for a domestic corporation. The officer is unable to verify the identity of the beneficial owners of the company. Only information on the nominee owners was provided, and none of the listed addresses are local. The purpose of the business and future expected activity was disclosed to include cash letters, money orders and international remittance transfers.
Which red flag identifies a heightened money laundering risk?
Answer : B
Law enforcement submitted a request to a bank for information regarding one of its customers.
How should the bank respond according to Financial Action Task Force Guidance?
Answer : C
How should a financial institution respond to a verbal request from a law enforcement agency to keep an account open to assist in an investigation?
Answer : C
Reference:
http://files.acams.org/pdfs/English_Study_Guide/Chapter_5.pdf
(12)
A bank operates in multiple countries and offers a variety of products and services. The compliance officer recently joined the bank and wants to better understand the inherent level of anti-money laundering risk across the entire organization.
Which two factors should be considered? (Choose two.)
Answer : AB
A bank is preparing for its anti-money laundering independent review, which is performed every two years under the direction of the compliance officer. The bankג€™s corporate audit department will conduct the review. The compliance officer will review the final report before it is released to the Board of Directors.
What is the issue with this situation?
Answer : A