Summary Of Key Points - AML & Cft

18 Questions | Total Attempts: 120

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Finance Quizzes & Trivia

Questions and Answers
  • 1. 
    Activities and processes intended to alter the identity of the source of [blank] obtained money in a manner which creates the appearance that it has originated from a legitimate source.
  • 2. 
    The 4 stages of the Money Laundering Process are: dirty money, [blank], layering and integration.
  • 3. 
    Dirty money can come from
    • A. 

      Bribery and insider trading

    • B. 

      Selling of hawker food

    • C. 

      Casino gambling and lottery wins

    • D. 

      Tax savings and capital gains from shares

  • 4. 
    A policyholder who paid large amount of premiums in advance in cash is an example of which stage of the money laundering process?
    • A. 

      Integration

    • B. 

      Dirty money

    • C. 

      Placement

    • D. 

      Layering

  • 5. 
    Dirty money that has been made clean and used to purchase real estate and stock investments is an example of which stage of the money laundering process?
    • A. 

      Layering

    • B. 

      Disposal

    • C. 

      Integration

    • D. 

      Placement

  • 6. 
    The following is an example of Layering:-
    • A. 

      Payment by unrelated 3rd party cheque

    • B. 

      Insurance requested is inconsistent with policyholder's profile

    • C. 

      Purchase of business enterprise

    • D. 

      Assignment of policies to unrelated or 3rd party

  • 7. 
    Methods used by terrorists to move funds are similar to money laundering and amounts may not be large.
    • A. 

      True

    • B. 

      False

  • 8. 
    Customer Due Diligence or "CDD" means obtaining certain information and performing certain verification checks after accepting an applicant as a customer.
    • A. 

      True

    • B. 

      False

  • 9. 
    CDD is required on an ongoing basis after an applicant becomes a customer.
    • A. 

      True

    • B. 

      False

  • 10. 
    A direct insurer shall perform CDD measures when:
    • A. 

      The direct life insurer establishes business relations with any customer

    • B. 

      There is suspicion of money laundering or terrorism financing

    • C. 

      The direct life insurer has doubts about the veracity or adequacy of any information previously obtained.

    • D. 

      All of the above

  • 11. 
    A direct insurer shall identify each customer by obtaining at least the following information:-
    • A. 

      Full name, including aliases

    • B. 

      Salary statement

    • C. 

      Identity card number

    • D. 

      Residential address

    • E. 

      Nationality

    • F. 

      Date of marriage for customers who are married

    • G. 

      Date of birth

    • H. 

      Place of birth

  • 12. 
    A politically exposed person (PEP) is someone who is anti-government.
    • A. 

      True

    • B. 

      False

  • 13. 
    Government ministers, senior civil or public servants, senior political party officials, member of the World Trade Organisation are examples of Politically Exposed Persons. 
    • A. 

      True

    • B. 

      False

  • 14. 
    To perform enhanced due diligence for PEP, you need to:-
    • A. 

      Get approval from senior management to establish or continue business relations with the customer

    • B. 

      Get approval from the customer's senior management or relevant government body

    • C. 

      Conduct enhanced monitoring of business relations with the customer during the course of business relations

    • D. 

      Establish the source of wealth and source of funds of the customer

  • 15. 
    Enhanced Customer Due Diligence is required for the scenarios:-
    • A. 

      Close associate of a PEP

    • B. 

      Family member of a PEP

    • C. 

      Employee of a foreign bank

    • D. 

      Customer is classified under high risk occupations

    • E. 

      Client's nationality is from a high tax risk country

    • F. 

      Negative reports from media or credible information sources on the customer

  • 16. 
    If you suspect that a customer may be trying to launder money, you should report immediately to your agency leader and compliance department.
    • A. 

      True

    • B. 

      False

  • 17. 
    MAS will take serious enforcement actions, ranging from formal warnings, reprimands, restriction on operations, to financial penalties and revocation of licences against financial institutions who breach the anti-money laundering laws.
    • A. 

      True

    • B. 

      False

  • 18. 
    Individuals who are found guilty of money laundering offences or tipping-off a money launderer could face imprisonment, a fine or both.
    • A. 

      True

    • B. 

      False

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