BSA/AML Quiz - September 2016

12 Questions | By Myfortuneloan | Updated: Mar 16, 2022 | Attempts: 67

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LET US REVIEW OUR BSA/AML KNOWLEDGE. Please take time to answer the quiz.

Questions and Answers

1.

Failure to report suspicious activities will not result in penalties or legal action against you and LCCI.
- A.
  
  True
- B.
  
  False
2.

Disclosing that an investigation is being contemplated on the customer's account is considered as:
- A.
  
  Layering
- B.
  
  Failure to disclose Suspicious transaction reporting
- C.
  
  Tipping off
- D.
  
  Integration
3.

How long should we retain customer's/transaction records?
- A.
  
  1 year
- B.
  
  5 years
- C.
  
  7 years
- D.
  
  We can delete upon customer request provided that the account is deactivated
- E.
  
  We cannot destroy customer's records at all. These are retained as paper trail
4.

Indicate whether the following statement is True or False.Criminals almost always launder money solely through banks and other financial institutions. Therefore anti-money laundering compliance is not a serious issue for other types of businesses
- A.
  
  True
- B.
  
  False
5.

A customer is encashing a $25 check issued by US government. When asked by LCCI employee to present a proof of identification, the customer presents his Amexco card and an expiring CA driver's license. These are not satisfactory identification before encashing the check. can be made
- A.
  
  True
- B.
  
  False
6.

Launderers are most vulnerable to being caught during the Integration stage – where money is returned to the criminal from what seem to be legitimate source.
- A.
  
  True
- B.
  
  False
7.

Part-time employees have no liability and are exempted from receiving monetary/civil penalties for Tipping off offenses
- A.
  
  True
- B.
  
  False
8.

Reported suspicions will be fully evaluated and documented by _________________.
9.

Select 2 possible indicators to look for in Money Laundering
- A.
  
  Unusual number of checks payable to the customer, often with the same drawer
- B.
  
  Holding 2 different credit cards, both of which are not chips enabled
- C.
  
  Numerous purchases of money orders, just under the threshold amount.
- D.
  
  Customer resides in a rented room in Oakland, but owns a condominium unit along Ayala Avenue in Makati.
- E.
  
  All of the above
- F.
  
  None of the above
10.

Select the potential risks to LCCI if we fail to implement counteractive measures in preventing AML
- A.
  
  Loss of revenue
- B.
  
  Attract the wrong kind of business
- C.
  
  Removal of license to operate
- D.
  
  Directors may be fined
- E.
  
  All of the above
- F.
  
  None of the Above
11.

The laundering stage that separates the illicit money from its source. They obscure the audit trails and sever links with original crime to make it appear like a normal financial transaction
- A.
  
  Entering in the system
- B.
  
  Legitimising
- C.
  
  Layering
- D.
  
  Placement
- E.
  
  Integration
12.

The US PATRIOT ACT does not require which of the following as part of an appropriate AML Program:
- A.
  
  Appointment of a Compliance Officer
- B.
  
  Written Policies and Procedures
- C.
  
  Independent Review of the Program
- D.
  
  Mandatory Drug Screening