Financial Crime: Trivia Quiz!

2.

Which of the following countries currently have comprehensive sanctions enforced against them by the US Office of Foreign Assets Control (OFAC)?

Iran
Pakistan
Sudan
North Korea

Correct Answer(s)

A. Iran
A. Sudan
A. North Korea

Explanation

Iran, Sudan, and North Korea currently have comprehensive sanctions enforced against them by the US Office of Foreign Assets Control (OFAC). These sanctions are put in place due to various reasons such as human rights violations, support for terrorism, and nuclear proliferation concerns. The US government restricts trade and financial transactions with these countries in order to exert pressure and encourage changes in their behavior.

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3.

Which of the following banks has been hit with the largest fine for money laundering lapses?

JP Morgan
Barclays
Deutsche Bank
HSBC

Correct Answer

A. HSBC

Explanation

HSBC has been hit with the largest fine for money laundering lapses. This indicates that HSBC has been found guilty of significant violations related to money laundering and has faced severe penalties as a result. The other banks listed in the options may have also faced fines for similar issues, but HSBC's fine is the largest among them.

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4.

How much money is estimated to be laundered globally each year according to the United Nations (UN)?

US$800 billion - UD$2 trillion
US$80 billion - UD$1 trillion
US$1.5 trillion - UD$2.5 trillion
US$200 billion - UD$800 billion

Correct Answer

A. US$800 billion - UD$2 trillion

Explanation

The correct answer is US$800 billion - UD$2 trillion. This estimate is based on the information provided by the United Nations (UN). Money laundering refers to the process of making illegally obtained money appear legal by disguising its true origin. It is a global problem that affects economies and financial systems worldwide. The wide range of estimates reflects the difficulty in accurately measuring the extent of money laundering activities.

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5.

Which terrorist organization was responsible for the September 11th terrorist attacks in the United States in the year 2001?

ISIS
Taliban
Lashkar-E-Taiba
Al-Qaeda

Correct Answer

A. Al-Qaeda

Explanation

Al-Qaeda was responsible for the September 11th terrorist attacks in the United States in 2001. This terrorist organization, founded by Osama bin Laden, orchestrated the attacks on the World Trade Center and the Pentagon, resulting in the deaths of thousands of innocent people. Al-Qaeda's extremist ideology and global reach made it a significant threat to international security at the time, and the attacks on 9/11 marked a turning point in global counterterrorism efforts.

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6.

According to the Financial Action Task Force (FATF), which of the following statements is true?

A Politically Exposed Person (PEP) is an individual who is or has been entrusted with a prominent public function.
A Politically Exposed Person (PEP) is an individual who is currently entrusted with a prominent public function.

Correct Answer

A. A Politically Exposed Person (PEP) is an individual who is or has been entrusted with a prominent public function.

Explanation

The correct answer is that a Politically Exposed Person (PEP) is an individual who is or has been entrusted with a prominent public function. This means that a PEP can be someone who is currently in a prominent public role, as well as someone who held such a role in the past. The term "entrusted" implies that these individuals have been given a position of power or responsibility in the public sphere, which makes them more susceptible to corruption or illicit activities. The Financial Action Task Force (FATF) recognizes the importance of identifying and monitoring PEPs to prevent money laundering and terrorist financing.

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7.

Which bank has recently (first week of September'17) been fined by the US regulator as a result of persistent AML and Sanctions compliance breaches.

Deutsche Bank
Habib Bank
Coutts
Well Fargo

Correct Answer

A. Habib Bank

Explanation

Habib Bank has recently been fined by the US regulator due to persistent AML (Anti-Money Laundering) and Sanctions compliance breaches.

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8.

Which of the following agencies in the UK is responsible for the enforcement of the Money Laundering Regulations (2017) legislation?

National Crime Agency (NCA)
Crown Prosecution Service (CPS)
Financial Conduct Authority (FCA)
Prudential Regulation Authority (PRA)

Correct Answer

A. Financial Conduct Authority (FCA)

Explanation

The correct answer is Financial Conduct Authority (FCA). The FCA is responsible for the enforcement of the Money Laundering Regulations (2017) legislation in the UK. They are a regulatory agency that oversees and regulates financial markets and firms to ensure that they operate in a way that protects consumers and maintains the integrity of the financial system. As part of their responsibilities, they enforce regulations related to money laundering to prevent illegal activities such as the movement of illicit funds through the financial system.

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9.

Which of the following statements is true?

Money laundering is the process of trying to conceal the illegitimate source of funds and convert them to legitimate funds.
Terrorist financing is more difficult to detect as the funds involved could be either illegitimate or legitimate.

Correct Answer(s)

A. Money laundering is the process of trying to conceal the illegitimate source of funds and convert them to legitimate funds.
A. Terrorist financing is more difficult to detect as the funds involved could be either illegitimate or legitimate.

Explanation

Money laundering involves concealing the origin of illegal funds and making them appear legal, while terrorist financing is more challenging to identify because the funds can be either legitimate or illegitimate. This means that terrorist organizations can potentially use legal sources of funding, making it harder to trace and detect their activities.

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10.

The Prevention of Money Laundering Act (PMLA) was implemented in India back in 2005. However, the first conviction under this act only happened in 2017. Is this statement true?

True
False

Correct Answer

A. True

Explanation

The statement is true. The Prevention of Money Laundering Act (PMLA) was indeed implemented in India in 2005, but the first conviction under this act did not occur until 2017. This indicates that it took a significant amount of time for the legal system to successfully prosecute a case under the PMLA.

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Financial Crime: Trivia Quiz!

What are the three stages of money laundering?

Quiz Preview

Which of the following countries currently have comprehensive sanctions enforced against them by the US Office of Foreign Assets Control (OFAC)?

Which of the following banks has been hit with the largest fine for money laundering lapses?

How much money is estimated to be laundered globally each year according to the United Nations (UN)?

Which terrorist organization was responsible for the September 11th terrorist attacks in the United States in the year 2001?

According to the Financial Action Task Force (FATF), which of the following statements is true?

Which bank has recently (first week of September'17) been fined by the US regulator as a result of persistent AML and Sanctions compliance breaches.

Which of the following agencies in the UK is responsible for the enforcement of the Money Laundering Regulations (2017) legislation?

Which of the following statements is true?

The Prevention of Money Laundering Act (PMLA) was implemented in India back in 2005. However, the first conviction under this act only happened in 2017. Is this statement true?