AML/Ctf Training & Quiz - December 2016

10 Questions | Total Attempts: 5262

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AML/Ctf Training & Quiz - December 2016 - Quiz

Have you studied the material on Anti-Money Laundering & Counter-Terrorist Financing? Let’s have a small test to see if you understand the concepts behind AML/CTF and your obligations as a Corporate Service Provider employee. Please note that you cannot go back to a previous question once you have answered it. An explanation of the correct answer is provided at the end of the test for the case study questions. Upon completion, please print or send by pdf your Certificate of Completion to the Compliance Officer.


Questions and Answers
  • 1. 
    Which of the following acts is not considered to be a money laundering offence?
    • A. 

      Dealing with any assets, knowing the property is proceeds of a crime

    • B. 

      Dealing with any assets, believing the property is proceeds of a crime

    • C. 

      Dealing with any assets, not knowing the property is proceeds of a crime

  • 2. 
    Which of the following is a regulatory requirement of Corporate Service Provider employees?
    • A. 

      Reporting a suspicious transaction

    • B. 

      Reporting corruption

    • C. 

      Reporting a crime

  • 3. 
    When should a Suspicious Transaction Report (STR) be made to the Authorities when you deal with your customer?
    • A. 

      Whenever there are suspicious activity indicators making the transaction with the customer suspicious

    • B. 

      Whenever there are suspicious activity indicators and the transaction with the customer remains suspicious, after all the information has been reviewed and attempt to clarify the issues with the customer has failed

    • C. 

      For all transactions of US$1,000,000 and above

  • 4. 
    Which of the following is not normally required for Customer Due Diligence (CDD)?
    • A. 

      Know the spouse of the customer

    • B. 

      Know the customer

    • C. 

      Know the transaction

  • 5. 
    A walk-in customer, Mr. Roberts, came to our company and asked to set up a limited company, Company A. He asked this to be done quickly because he will be returning to the UAE soon. He provided the name of his wife as another shareholder of the company to be set up. He claimed that he would supply copies of both his and the wife’s passport at a later stage.What is the most appropriate course of action?
    • A. 

      Refuse Mr. Roberts’ business as the circumstances are suspicious

    • B. 

      Proceed with the business and conduct CDD on Mr. Roberts and his wife

    • C. 

      Proceed with the business but make a suspicious transaction report because it looks suspicious

  • 6. 
    Following upon Q.6, you interviewed Mr. Roberts with a view to conducting Customer Due Diligence (CDD). He stated that he was a company director in the UAE (with no further details provided) and claimed that he had not had his passport or picture ID with him. His wife was busy in the UAE and could not travel to Cyprus to sign the documents for setting up the company. Mr. Roberts stated that a “Power of Attorney” will be sent to your office by courier tomorrow so that he is properly authorised to act for his wife. He requested that action be taken now to set up a company in Cyprus.What should you do?
    • A. 

      Ask Mr. Roberts to be patient and come back tomorrow with the proof of ID of himself and his wife as well as documentary proof of his directorship in the UAE company

    • B. 

      Refuse the transaction as the circumstances are suspicious

    • C. 

      Make a Suspicious Transaction Report in order to report your suspicion

  • 7. 
    Following upon Q.7, Mr. Roberts told you that he came from the UAE and would stay in Cyprus for a few days only. He claimed that he wanted to deposit the funds of a declared dividend he obtained in the UAE and invest in real estate in Cyprus.As he is too busy to open a bank account, he requested to deposit the money in cash into the bank account of our company so that the money could be transferred to the bank account of Company A for property investment.What should you do?
    • A. 

      Ask your staff to deposit the cash into the bank account and wait for further instruction from Mr. Roberts

    • B. 

      Make a STR as the circumstances are suspicious

    • C. 

      Refuse to proceed with the transaction but no need to make a STR

  • 8. 
    Mr Roberts now has succeeded in opening a bank account and transferring funds into this account. Further to Q.8, Mr. Roberts sent you a letter from the UAE saying that as the Cyprus property market seemed to go down, he had decided to change his investment plan. He requested your company to transfer the money to his friend's bank accounts in the UAE.What is the best course of action?
    • A. 

      Proceed with the transfer as the money belongs to Mr. Roberts and do not make a STR

    • B. 

      Refuse the request as you suspect that it is a money laundering scheme

    • C. 

      Make a STR to the Competent Authorities to explain the suspicion you have in this case

  • 9. 
    Mr. Smith came to your office and asked to set up a trust for charitable purposes. The aim is to help poor children in Africa with their education. After the trust is formed, donations were received from overseas countries and money was sent to various African countries for building schools. A few months later, Mr. Smith instructed you to transfer US$100,000 to a personal bank account opened in a country known to be of a terrorist concern / under sanctions. Mr. Smith said that the money is to buy material to build schools in Africa.What should you do?
    • A. 

      Proceed with the transaction which you consider is relevant to the purpose of the trust

    • B. 

      Refuse the transaction but do not report

    • C. 

      Make a STR because the transaction relates to a country under terrorist concern / sanctions

  • 10. 
    One of the important steps of money laundering is:
    • A. 

      Depositing; withdrawing

    • B. 

      Placement; layering

    • C. 

      Backward; forward integration

    • D. 

      Organisation; controlling

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