Ultimate Quiz On Anti-money Laundering

26 Questions | Total Attempts: 314

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Anti Money Laundering Quizzes & Trivia

Compliance


Questions and Answers
  • 1. 
    THE PATRIOT ACT DOES NOT REQUIRE WHICH OF THE FOLLOWING AS PART OF AN APPROPRIATE AML PROGRAM?
    • A. 

      APPOINTMENT OF COMPLIANCE OFFICER

    • B. 

      WRITTEN POLICIES AND PROCEDURES

    • C. 

      INDEPENDENT REVIEW OF THE PROGRAM

    • D. 

      MANDATORY DRUG SCREENING

  • 2. 
    FAILURE TO REPORT SUSPICIOUS ACTIVITIES CAN RESULT IN PENALTIES OR LEGAL ACTION AGAINST YOU AND YOUR COMPANY.
    • A. 

      TRUE

    • B. 

      FALSE

  • 3. 
    MONEY LAUNDERING IS THE PROCESS BY WHICH THE PROCEEDS OF CRIMINAL ACTIVITY ARE INTRODUCED INTO LEGITIMATE MAINSTREAM OF FINANCIAL COMMERCE.
    • A. 

      TRUE

    • B. 

      FALSE

  • 4. 
    THE PATRIOT ACT STRENGTHENED SEVERAL ANTI-MONEY LAUNDERING LAWS.
    • A. 

      TRUE

    • B. 

      FALSE

  • 5. 
    EMPLOYEE TRAINING PROGRAMS SHOULD
    • A. 

      INCLUDE ALL EXISTING AND NEW EMPLOYEES

    • B. 

      BE ONGOING AND UPDATED TO INCLUDE NEW CHANGES IN THE LAW AND INDUSTRY

    • C. 

      BE SPECIFIC TO THE EMPLOYEES DUTIES AND THE SERVICES PROVIDED BT THE MSB

    • D. 

      BE DOCUMENTED AND CONFIRMED BY APPROPRIATE TESTING

    • E. 

      ALL OF THE ABOVE

  • 6. 
    WHAT ACT IS AIMED AT THE PROVIDING STRONGER SURVEILLANCE POWERS, STRENGTHENING CRIMINIAL LAWS AGAINST TERRORISM, AND COMBATING MONEY LAUNDERING?
    • A. 

      OFAC

    • B. 

      BSA

    • C. 

      IDENTITY THEFT ACT

    • D. 

      USA PATRIOT ACT

  • 7. 
    SECTION 352 OF THE PATRIOT ACT REQUIRES ALL MSB'S TO IMPLEMENT ANTI-MONEY LAUNDERING PROGRAMS THAT INCLUDE
    • A. 

      WRITTEN POLICIES AND PROCEDURES

    • B. 

      APPOINTMENT OF A COMPLIANCE OFFICER

    • C. 

      ONGOING EMPLOYEE TRAINING PROGRAM

    • D. 

      THE INDEPENDENT REVIEW FUNCTION

    • E. 

      ALL OF THE ABOVE

  • 8. 
    THE BANK SECRECY ACT REQUIRES FINANCIAL INSTITUTIONS TO
    • A. 

      REPORT SUSPICIOUS ACTIVITIES

    • B. 

      KEEP RECORDS OF ALL TRANSACTIONS

    • C. 

      FILE CURRENCY TRANSACTION REPORTS WITH THE IRS

    • D. 

      A & C

    • E. 

      NONE OF THE ABOVE

  • 9. 
    AS A MANAGER/OR COMPLIANCE OFFICER, IT IS PART OF YOUR JOB TO
    • A. 

      MAINTAIN YOUR COMPANYS AML PROGRAM

    • B. 

      ENSURE THAT PROPPER REPORTS ARE FILED AND RECORDS MAINTAINED

    • C. 

      ENSURE THAT EMPLOYEES REPORT SUSPICIOUS ACTIVITIES

    • D. 

      ALL OF THE ABOVE

  • 10. 
    IF A REGULAR CUSTOMER CONDUCTS A CASH TRANSACTION INVOLVING MORE THAN $10,000, YOUR COMPANY IS NOT REQUIRED TO FILE A CTR
    • A. 

      TRUE

    • B. 

      FALSE

  • 11. 
    OFAC REGULATIONS APPLY ONLY TO BANKS
    • A. 

      TRUE

    • B. 

      FALSE

  • 12. 
    AN EXAMPLE OF SMURFING IS:
    • A. 

      A BROKER BUYING PESOS WITH U.S. DOLLARS

    • B. 

      A DRUG DEALER ASKING A STRANGER TO BUY A MONEY ORDER WITH DRUG MONEY

    • C. 

      WIRING MONEY TO A FOREIGN COUNRTY

    • D. 

      NONE OF THE ABOVE

  • 13. 
    A CUSTOMER BRINGS IN $12,000 IN CURRENCY AT ONE TIME AND REQUESTS THREE SEPERATE MONEY ORDERS OF $4,000 EACH. A CTR IS NOT REQUIRED.
    • A. 

      TRUE

    • B. 

      FALSE

  • 14. 
    LAUNDERERS MIGHT ATTEMPT A SERIES OF SMALL CURRENCY TRANSACTIONS OVER TIME BECAUSE
    • A. 

      A PROVISION OF THE BANK SECRECY ACT REQUIRES THE FILING OF A CTR FOR TRANSACTIONS EXCEEDING $10,000

    • B. 

      LARGER AMOUNTS ARE TOO RISKY TO CARRY AROUND

    • C. 

      THATS HOW LAUNDERERS TAKE IN THE FUNDS

    • D. 

      NONE OF THE ABOVE

  • 15. 
    IF A CUSTOMER IS RECEIVING A WIRE TRANSFER OF $6,000, THE MSB IS NOT REQUIRED TO TAKE ID AD RECORD THE CUSTOMERS INFORMATION.
    • A. 

      TRUE

    • B. 

      FALSE

  • 16. 
    YOUR AML PROGRAM SHOULD WARN EMPLOYEES AGAINST DISCLOSING ANY CUSTOMERS SOCIAL SECURITY NUMBER, DRIVERS LICENSE NUMBER, ADDRESS, OR DATE OF BIRTH DATE BECAUSE IT COULD BE USED TO HELP IDENTITY THEFT.
    • A. 

      TRUE

    • B. 

      FALSE

  • 17. 
    YOUR AML PROGRAM MUST COVER THE BANK SECRECY ACTS REQUIREMENT THAT FINANCIAL INSTITUTIONS FILE A ________________________ FOR CERTAIN TRANSACTIONS OVER $10,000
    • A. 

      CURRENCY TRANSACTION REPORT

    • B. 

      SUSPICIOUS ACTIVITY REPORT

    • C. 

      EXCEPTION NOTICE

    • D. 

      CRIMINAL ACTIVITY REPORT

  • 18. 
    A CUSTOMER BUYS MONEY ORDERS FOR $5,999 CASH ON MONDAY, $9,000 CASH ON WEDNESDAY, $9,500 CASH ON THURSDAY, AND $8,000 CASH ON FRIDAY. THIS DESERVES MORE INVESTIGATION AS A POTENTIAL CASE OF STRUCTURING.
    • A. 

      TRUE

    • B. 

      FALSE

  • 19. 
    JOHN WANTS TO MAKE A $3,500 WIRE TRANSFER. AS IDENTIFICATION, HE PRESENTS HIS VISA CREDIT CARD. THIS IS SATISFACTORY IDENTIFICATION.
    • A. 

      TRUE

    • B. 

      FALSE

  • 20. 
    A CUSTOMER COMES IN FOUR DAYS IN A ROW, EACH TIME REQUESTING A WIRE TRANSFER OF $2,900. YOU DO NOT NEED TO REPORT THIS AS A SUSPICIOUS ACTIVITY.
    • A. 

      TRUE

    • B. 

      FALSE

  • 21. 
    WHICH OF THE FOLLOWING ARE EXAMPLES OF WILLFUL BLINDNESS?
    • A. 

      ALLOWING A CUSTOMER TO PURCHASE MONEY ORDERS UNDER DIFFERENT NAMES

    • B. 

      SELLING MULTIPLE MONEY ORDERS TO A CUSTOMERS AND NOT RECORDING HIS OR HER ID

    • C. 

      COMPLETING A TRANSACTION FOR A LESS, NON-REPORTABLE AMOUNT AFTER A CUSTOMER HAS REFUSED TO PRODUCED ID FOR A LARGER TRANSACTION

    • D. 

      CASHING A CHECK FOR SOMEONE WHO IS NOT THE PAYEE OF THE CHECK

    • E. 

      ALL OF THE ABOVE

  • 22. 
    FOR THE MONEY LAUNDERING PROCESS TO BE A SUCCESS, TRANSACTIONS SUCH AS CURRENCY EXCHANGE, WIRE TRANSFERS, AND MONEY ORDERS NEED TO BE COMPLIMENTED WITHOUT ANY PAPER TRAIL.
    • A. 

      TRUE

    • B. 

      FALSE

  • 23. 
    WHICH OF THE FOLLOWING TRANSACTIONS REQUIRE A RECORD TO BE MADE?
    • A. 

      EXCHANGING $2,000 IN TWENTY DOLLAR BILLS TO $2,000 IN ONE HUNDRED DOLLAR BILLS

    • B. 

      EXCHANGING $1,500 IN DOLLAR TO MEXICAN PESOS

    • C. 

      EXCHANGING $500 IN PESOS AND $900 IN TWENTY DOLLAR BILLS TO $1,400 IN HUNDRED DOLLAR BILLS

    • D. 

      ALL OF THE ABOVE

    • E. 

      A & C

  • 24. 
    YOUR MSB AND ANY OF ITS EMPLOYEES ARE LIABLE FOR _________ PENALTIES RANGING FROM FINES OF $250,000 AND IMPRISONMENT OF FIVE YEARS, UP TO FINES OF $5000,000 AND IMPRISONMENT OF 10 YEARS.
    • A. 

      CIVIL

    • B. 

      FINANCIAL

    • C. 

      LOCAL

    • D. 

      CRMINAL

  • 25. 
    YOU AND YOUR MSB CAN RECEIVE CIVIL AND MONETARY PENALTIES IF YOU UNKNOWINGLY ASSIST MONEY LAUNDERERS.
    • A. 

      TRUE

    • B. 

      FALSE

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