AML/Ctf Quiz 2013 (Hong Kong)
Thanks for attending the AML/CTF Training 2013. Please take some time to complete the quiz.
- 1.Which is NOT a stage of money laundering?
- A.
Layering
- B.
Placement
- C.
Integration
- D.
Whitening
- 2.The stage of money laundering at which illicit money first enters the financial system is called:
- A.
Layering
- B.
Placement
- C.
Integration
- D.
Whitening
- 3.The correct sequence of stages of money laundering is?
- A.
Placement > Layering > Integration
- B.
Layering > Placement > Integration
- C.
Integration > Placement > Layering
- D.
Placement > Whitening > Integration
- 4.What are the common sources of terrorist financing?
- A.
Tax Evasion
- B.
Corruption
- C.
Drug Trafficking
- D.
All of the above
- 5.After a client relationship has ended, how long must the records be kept for?
- A.
1 year
- B.
2 years
- C.
3 years
- D.
6 years
- 6.If the client is not present for account opening, what level of CDD must take place?
- A.
Enhanced
- B.
Simplified
- C.
Standard
- D.
Client must be present on spot for account opening
- 7.When a staff reports suspicious transactions to the MLRO, he/she should:
- A.
Also send the report to the customer
- B.
Tell the customer but do not show them the report
- C.
Not inform anyone else
- D.
Photocopy the report and hang it on the notice board
- 8.What is PEP?
- A.
Politically exposed person
- B.
Personal equity plan
- C.
Potentially enhanced person
- D.
Politically exposed people
- 9.Which of the following is a high risk activity?
- A.
Significant money transfer to unknown third parties overseas
- B.
A member purchasing a car from a local garage
- C.
A loan for home improvement
- D.
Printing a statement for a customer
- 10.The terms “CDD” means:
- A.
Customer due dligence
- B.
Customer due database
- C.
Credit-union due diligence
- D.
Cyclic delay diversity
- 11.What is the name of the approach suggested by JFIU in Suspicious Transaction Reporting (STR)?
- A.
“SAFE” approach
- B.
“ASFE” approach
- C.
“FASE” approach
- D.
“EFSA” approach
- 12.Which one of the following is likely to be a suspicious activity/ activities?
- A.
Customer reluctant to provide the necessary KYC information or documents.
- B.
Frequent switching of funds within a short period of time without economic reasons.
- C.
Over-payment to the company with a request to refund the excess to third parties overseas.
- D.
All of the above
- 13.Who do you report a Suspicious Transaction to?
- A.
Board of Directors
- B.
SFC
- C.
Money Laundering Reporting Officer (MLRO)
- D.
Senior Management
- 14.Where an employee acts in such a way as to notify a client that a Suspicious Transaction Report (STR) has been filed on their account, this action is known as:
- A.
Money launders
- B.
Witness interference
- C.
Tipping off
- D.
PEPs
- 15.Which international organization has been issuing a number of recommendations for dealing with money laundering (ML)?
- A.
Independent Commission Against Corruption (ICAC)
- B.
Hong Kong Monetary Authority (HKMA)
- C.
Financial Action Task Force (FATF)
- D.
Hong Kong Police Force (HKPF)
- 16.If a suspicious transaction is found to be justified, where should the Suspicious Transaction Report (STR) be submitted to?
- A.
Securities and Futures Commission (SFC)
- B.
Mandatory Provident Funds Schemes Authority (MPFA)
- C.
Financial Services and the Treasury Bureau (FSTB)
- D.
Joint Financial Intelligence Unit (JFIU)
- 17.Which of the following type identification document would be considered as valid and acceptable?
- A.
Credit card
- B.
Expired driving license
- C.
Business name card
- D.
Hong Kong Permanent Identity Card
- 18.Which are the ordinances in relation to the Money Laundering and Terrorist Financing in Hong Kong? i. The Drug Trafficking (Recovery of Proceeds) Ordinance (DTROP) ii. Organized and Serious Crimes Ordinance (OSCO) iii. The United Nations (Anti-Terrorism Measures) Ordinance (UNATMO) iv. The Anti-Money Laundering Ordinance (AMLO)
- A.
I, ii
- B.
Ii, iii, iv
- C.
I, iv
- D.
All of the above
- 19.What are our enhanced verification procedures for non face-to-face account opening? i. Account opening documents to be certified by suitable certifier, e.g. CPA, lawyer ii. Requires the client to submit a cheque of at least HK$10,000, issued by licensed bank in HK, which bear the client’s name iii. Make a phone call to verify client’s identity by Client Services Department
- A.
I, ii
- B.
I
- C.
Ii
- D.
Iii
- 20.Which of the following is considered as a proper KYC document?
- A.
School gradation certificate
- B.
Unexpired passport issued by government department bearing a photograph
- C.
Business name card
- D.
A self-written letter confirming the client’s name and identity
- 21.Criminals always launder money solely through banks and other financial institutions. Therefore, anti-money laundering compliance is not a serious issue for other types of business.
- A.
True
- B.
False
- 22.Terrorists can obtain money to source their activities from legitimate organizations, such as charities and religious groups.
- A.
True
- B.
False
- 23.JFIU is a jointly run by the HK Police Force and the HK Customs and Excise Department.
- A.
True
- B.
False
- 24.Cash intensive businesses like casinos, convenience stores and restaurants belong to High Risk Category (HRC).
- A.
True
- B.
False
- 25.Hong Kong is NOT a member of the FATF.
- A.
True
- B.
False
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