Financial Crime: Trivia Quiz!

The correct answer is "Placement, Layering, Integration". Money laundering involves three stages: placement, layering, and integration. Placement refers to the initial stage where illegal funds are introduced into the financial system. Layering involves complex transactions to obscure the origin of the funds, making it difficult to trace. Integration is the final stage where the laundered money is integrated back into the legitimate economy, appearing as legitimate funds. This three-stage process helps criminals hide the illicit origins of their money and make it appear legal.

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.

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.

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.

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.

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.

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.

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.

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.

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