Summary Of Key Points - AML & Cft

18 Questions | By Marynflc | Updated: Mar 20, 2022 | Attempts: 139

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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