Based on studies executed by the Organization for Economic Cooperation and Development (OECD), which occupations are particularly vulnerable to the use of false identities and identity theft?
A. Government officers
B. Sea port officers
C. Lawyers
D. Laborers
Answer:
A
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A 3 votes
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B
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C 2 votes
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D
50%
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Lakshmi
2 months ago
C- According to studies conducted by the Organization for Economic Cooperation and Development (OECD), occupations such as lawyers are particularly vulnerable to the use of false identities and identity theft.
Question 5
Which methods are typically used to launder money using insurance companies? (Choose two.)
A. The policy holder overpays the policy and moves the funds out of the policy despite paying early withdrawal penalties.
B. The policy holder enters a sibling as a beneficiary of the insurance policy rather than themselves.
C. The policy holder purchases a bond and redeems it at a discount prior to its full term.
D. The policy holder uses an offshore company to pay the insurance installments.
E. The policy holder is strongly interested in how many costs are incurred when taking out an insurance policy.
Answer:
A, D
User Votes:
A 3 votes
50%
B
50%
C
50%
D 2 votes
50%
E
50%
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Question 6
After a FATF mutual evaluation process, which are resulting actions for jurisdictions that are determined to have strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing? (Choose two.)
A. Expect private statements from FATF regarding the level of compliance of the jurisdiction, when insufficient progress is made.
B. Appeal to FATF for a technical compliance re-rating based on the jurisdiction's own experts criteria.
C. Demonstrate a high-level commitment to swiftly resolve the identified deficiencies in the FATF mutual evaluation report.
D. Request FATF for an extension of deadlines in order to provide local awareness on the improvements that are necessary to solve the deficiencies.
E. Report to FATF on the implementation of their progress under the enhanced follow-up mechanism.
Which red flag should a compliance officer prioritize first for investigation?
A. A loan is paid off in full with cash after the sale of the vehicle that was used as collateral for the loan.
B. Several cross-border transfers are received and immediately wired to another beneficiary.
C. A customer has 20 monthly transactions that are repetitive but less than $500 USD per transaction.
D. A convenience store cashes government checks for its customers in amounts less than $1,000 USD per day.
Answer:
C
User Votes:
A
50%
B 2 votes
50%
C 1 votes
50%
D
50%
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Question 8
A financial institution (FI) has decided to revamp its compliance program to be more risk-based. Which option should the FI use as part of the new risk-based compliance program?
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Lakshmi
2 months ago
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Lakshmi
2 months ago
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Question 9
Which is the first valid step in the Mutual Legal Assistance Treaties (MLAT) international cooperation process?
A. The central authority that receives the request sends it to a local judicial officer to find out if the information is available.
B. The central authority of the requesting country sends a commission letter of request to the central authority of the other country.
C. The investigator may remove the evidence collected without asking permission to do so.
D. An investigator from the requesting country visits the country where the information is sought and takes statements from the identified witnesses or suspects.
According to the 5th EU Money Laundering Directive, member states require entities to apply enhanced customer due diligence measures with respect to business relationships or transactions involving high-risk third country nationals. Which are included in these requirements? (Choose three.)
A. Obtaining the approval of senior management for establishing or continuing the business relationship
B. Obtaining copies of passports for all authorized persons
C. Establishing and verifying the address of the client
D. Obtaining information on the reasons for intended or performed transactions
E. Obtaining tax reference details for the client
F. Obtaining information on the source of funds and source of wealth of the customer and of the beneficial owner(s)
Answer:
D, E, F
User Votes:
A 1 votes
50%
B 1 votes
50%
C 2 votes
50%
D 1 votes
50%
E
50%
F 1 votes
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Lakshmi
2 months ago
A, D and F
Question 11
Which transaction should result in a SAR/STR filing?
A. A small business owner deposits checks totaling $9,950 USD on a daily basis without providing a legitimate purpose.
B. A small business owner deposits $25,000 USD in cash proceeds with a business equipment bill of sale.
C. A national food-chain restaurant with multiple cash transactions at various branch locations.
D. A national food-chain restaurant makes multiple, anticipated cash transactions that are above the daily reporting threshold.
According to the Basel Committee on Banking Supervision standards, which statements best describe sound practices in relation to customer due diligence (CDD) policies and procedures? (Choose three.)
A. Banks should identify its customers based on a general-rules based assessment without considering the expected size and use of the account.
B. Banks should never allow for verification to be completed after the establishment of the business relationship since it would not be essential for the normal conduct of business.
C. Banks should take into consideration the occasional banking transaction or the size/level of assets to build an understanding of the customer's profile and behavior.
D. Banks should develop and implement clear acceptance policies and procedures to identify the types of customer that are likely to pose a higher risk of financing terrorism or money laundering.
E. Banks should implement enhanced due diligence measures for entering business relationships with high-risk customers, such as approval by senior management.
F. Banks should use CDD procedures based in another bank's standards when subject to the same criteria for handling funds of a shared customer.
Answer:
A, C, E
User Votes:
A
50%
B 1 votes
50%
C
50%
D 1 votes
50%
E 1 votes
50%
F
50%
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Question 14
Which is a FATF characteristic used to assess a country's effectiveness of its AML regime?
A. Funds supporting and proceeding from crime or terrorism are prevented from entering the financial sector.
B. Legal persons are prevented from misuse for money laundering or terrorist financing.
C. Supervisors appropriately supervise, monitor, and regulate financial institutions (Fls).
D. FIs adequately apply preventive measures.
Answer:
A
User Votes:
A
50%
B
50%
C 1 votes
50%
D
50%
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Question 15
Which is the main objective when a financial institution (FI) conducts an investigation?
the answer is B