First Quiz For Training On Anti-money Laundering

25 Questions | Total Attempts: 2259

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First Quiz For Training On Anti-money Laundering - Quiz

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Questions and Answers
  • 1. 
    Which of the following is NOT a step in Money Laundering
    • A. 

      Placement

    • B. 

      Layering

    • C. 

      Spending

    • D. 

      Re-Integration

  • 2. 
    What can be used to launder money
    • A. 

      Property

    • B. 

      Businesses

    • C. 

      Race Horses

    • D. 

      All of the above

  • 3. 
    What does PEP stand for?
    • A. 

      Potential Ex - Convicted Person

    • B. 

      Politically Engaged Person

    • C. 

      Politically Exposed Person

    • D. 

      Poorly Explained Potential

  • 4. 
    How long are verification records required to be kept by law?
    • A. 

      5 Years

    • B. 

      2 Years

    • C. 

      6 Months

    • D. 

      3 Years

  • 5. 
    Under FATF guidelines companies have a duty of care called what?
    • A. 

      Know Your Customer

    • B. 

      Monitor Customers manually

    • C. 

      Customer Due Care

    • D. 

      Customer Due Diligence

  • 6. 
    What is the laundering stage that separates the illicit money from its source, obscures the audit trail and severs links with the original crime to make it appear like a normal financial transaction called?
    • A. 

      Entering in the system

    • B. 

      Legitimising

    • C. 

      Layering

    • D. 

      Placement

    • E. 

      Integration

  • 7. 
    Which are the 3 stages of money laundering 
    • A. 

      Hedging

    • B. 

      Placement

    • C. 

      Identity fraud

    • D. 

      Integration

    • E. 

      Whitening

    • F. 

      Layering

  • 8. 
    To be classified as an eligible introducer, local entities should be:
    • A. 

      A) Licensed under a financial services regulator

    • B. 

      B) A reputable law firm

    • C. 

      C) Known to the bank

  • 9. 
    How does the home address on a utility bill, best assist in identifying the prospect
    • A. 

      A) The bank may want to visit the prospect

    • B. 

      B) The utility bill shows the monthly expenses

    • C. 

      C) The home address coupled with the name is evidence of a place of residence

  • 10. 
    What is enhanced due diligence?
    • A. 

      A) When your company has special expertise in due diligence procedures

    • B. 

      B) When you rely on due diligence procedures performed by others

    • C. 

      C) When specific pre-defined circumstances occur, which demand increased due diligence

  • 11. 
    Customer Due Diligence (CDD) is the responsibility of.......
    • A. 

      Compliance

    • B. 

      Risk

    • C. 

      Customer Facing Staff

    • D. 

      Operations

  • 12. 
    After starting a business relationship with a client which of the following would cause concern and be a 'Red Flag'?
    • A. 

      Unrealistic wealth compared to profile.

    • B. 

      Trades with no/little benefits and losses without concern.

    • C. 

      Large/rapid movement of funds.

    • D. 

      All the above.

  • 13. 
    Which of the following is NOT a 'high risk' customer?
    • A. 

      Cash intensive business eg money transfer, casinos etc.

    • B. 

      Customers with complex structures that make identifying ownership difficult.

    • C. 

      A PEPs stockbroker.

    • D. 

      A customer whose ownership structure is through 'bearer shares'.

  • 14. 
    Which one of the following is NOT a 'low risk' customer?
    • A. 

      Other regulated financial institutions.

    • B. 

      Listed Companies.

    • C. 

      Government and Public Authorities.

    • D. 

      Charities.

  • 15. 
    Who does Compliance Responsibility lie with?
    • A. 

      Board of Directors

    • B. 

      Senior Management & Staff

    • C. 

      Compliance Office

    • D. 

      All of the Above

  • 16. 
    If I see something that looks suspicious what should I do?
    • A. 

      Say nothing and hope that it will go away

    • B. 

      Inform your Compliance officer or Manager

    • C. 

      Discuss it with the client

    • D. 

      Contact the Police

  • 17. 
    A number of recomendations have been made by whom?
    • A. 

      Financial Action Task Field

    • B. 

      Financial Aging Terror Fund

    • C. 

      Financial Action Task Force

    • D. 

      Financial Laundering Task Force

  • 18. 
    If I don't report activity that is deemed suspicious and is later discovered has been involved in money laundering - what will happen?
    • A. 

      You could be held guilty of an offence and liable to a fine or imprisonment.

    • B. 

      You will carry on at work as normal

    • C. 

      The MLRO will be held guilty of an offence and liable to a fine or imprisonment.

    • D. 

      Nothing will happen

  • 19. 
    Which of the following terms is used to describe the process of sending money through multiple financial institutions to make it difficult to track?
    • A. 

      Integration

    • B. 

      Placement

    • C. 

      Camouflage

    • D. 

      Layering

  • 20. 
    In the U.S., banks must report deposits of $10,000.00 or more. What is the term for breaking up large sums of money into smaller amounts for deposit?
    • A. 

      Smuggling

    • B. 

      Shorting

    • C. 

      Shrinking

    • D. 

      Smurfing

  • 21. 
    Money laundering is the process by which the proceeds of criminal activity are introduced into legitimate mainstream of financial commerce.
    • A. 

      True

    • B. 

      False

  • 22. 
    A customer comes in four days in a row, each time requesting a transfer of $2,900. You do not need to report this as a suspicious activity. 
    • A. 

      True

    • B. 

      False

  • 23. 
    Which of these activities might require a suspicious activity report?
    • A. 

      A customer cancels a transaction and requests to do a second transaction for a less amount in order to avoid providing ID

    • B. 

      A customer requests an unusually high dollar transaction and cannot explain the reason for the transaction or the source of funds

    • C. 

      A customer appears nervous and asks unusual questions

    • D. 

      A customer tries to bribe a teller

    • E. 

      All these activities

  • 24. 
    Select 3 possible indicators to look for in Money Laundering.
    • A. 

      Unusual volume of payment destinations, often with the same provider

    • B. 

      Player wagers on both casino and sportsbook

    • C. 

      Numerous withdrawals, just under the qualifying threshold

    • D. 

      Player uses an E-wallet

    • E. 

      Multiple and frequent deposits followed by multiple and frequent withdrawals, either shortly afterwards or overlapping further deposits

    • F. 

      All of the above

    • G. 

      None of the above

  • 25. 
    Which of the following is not acceptable as verification of identity?
    • A. 

      Passport

    • B. 

      Driving Licence

    • C. 

      Birth Certificate

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