Quiz For Training On Anti-money Laundering

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| By Georgeford
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Georgeford
Community Contributor
Quizzes Created: 1 | Total Attempts: 917
| Attempts: 921
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  • 1/5 Questions

    If I see something that looks suspicious what should I do?

    • Say nothing and hope that it will go away
    • Inform your MLRO or Manager
    • Discuss it with the client
    • Contact the Police
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About This Quiz

Money laundering is one of the best ways that criminals use to clean the money they got from illegal activities. It is important to notice these activities and arrest the culprits before they set the money off as legal. Take the quiz and see how much you understood about ant money laundering.

Quiz For Training On Anti-money Laundering - Quiz

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  • 2. 

    What can be used to launder money

    • Property

    • Businesses

    • Race Horses

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    All of the options listed (property, businesses, and race horses) can be used as means to launder money. Money laundering is the process of making illegally obtained money appear legal by disguising its true source. Property can be purchased using illicit funds and then sold to legitimize the money. Similarly, businesses can be used to mix illegal funds with legitimate income, making it harder to trace the illegal source. Race horses can also be used to launder money through various means, such as overpricing or underreporting their value.

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  • 3. 

    How long are verification records required to be kept by law?

    • 5 Years

    • 2 Years

    • 6 Months

    • 3 Years

    Correct Answer
    A. 5 Years
    Explanation
    5 Years - All records including any information obtained about the customer including proof that verification of their name and address has been carried out.

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  • 4. 

    What does PEP stand for?

    • Potential Ex - Convicted Person

    • Politically Engaged Person

    • Politically Exposed Person

    • Poorly Explained Potential

    Correct Answer
    A. Politically Exposed Person
    Explanation
    A PEP or Politically exposed person is anyone that is deemed to be vulnerable to blackmail or bribery and their information must be deemed as sensitive

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  • 5. 

    Which of the following is NOT a step in Money Laundering

    • Placement

    • Layering

    • Spending

    • Re-Integration

    Correct Answer
    A. Spending
    Explanation
    Money laundering is a process through which illegally obtained money is disguised as legitimate funds. The three main stages of money laundering are placement, layering, and integration. Placement refers to the initial stage where the illegal funds are introduced into the financial system. Layering involves complex transactions to obscure the origin of the funds. Integration is the final stage where the laundered money is re-introduced into the legitimate economy. Spending, on the other hand, is not a step in money laundering as it simply refers to the use of the laundered funds for personal or business purposes.

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Quiz Review Timeline (Updated): Mar 21, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • May 17, 2012
    Quiz Created by
    Georgeford
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