Quiz For Training On Anti-money Laundering

1. 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

Your first priority is to bring the transactions to your Supervisor who in turn is obliged to report it to his/her manager should it be deemed necessary

Explanation

Your first priority is to bring the transactions to your Supervisor who in turn is obliged to report it to his/her manager should it be deemed necessary

2. What can be used to launder money

Property

Businesses

Race Horses

All of the above

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.

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.

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

5 Years

2 Years

6 Months

3 Years

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

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.

4. What does PEP stand for?

Potential Ex - Convicted Person

Politically Engaged Person

Politically Exposed Person

Poorly Explained Potential

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

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

5. Which of the following is NOT a step in Money Laundering

Placement

Layering

Spending

Re-Integration

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.

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.