Vandyk Mortgage's Anti-money Laundering Exam

The correct answer is "Yes" because it indicates that the person has viewed the Company's training on AML Compliance. This suggests that the person is aware of the training and has completed it, demonstrating their knowledge and understanding of the subject matter.

The correct answer is to save them and notify the AML Compliance officer about them. This is important because the paper and computer records related to a filed QAR may contain crucial information that needs to be preserved for future reference or investigation. By saving them and notifying the AML Compliance officer, the necessary steps can be taken to ensure compliance with regulations and to address any potential issues or concerns that may arise from the QAR. Deleting them or assuming that new investigations will be conducted and new documents created can lead to the loss of valuable evidence and hinder the proper handling of the situation.

The company should refuse to transact with a customer who fails to provide the necessary information to verify the borrower's identity and notify the AML Compliance Officer about such an event. This is because verifying the borrower's identity is an important step in preventing money laundering and other illegal activities. By refusing to transact with a customer who fails to provide the necessary information, the company can protect itself from potential risks and comply with anti-money laundering regulations. Additionally, notifying the AML Compliance Officer ensures that the appropriate actions can be taken to address the situation and mitigate any potential risks.

If you become aware of suspicious activity related to a borrower or any other purpose, you should send a QAR to the company's AML Compliance Officer immediately. The AML Compliance Officer is responsible for conducting investigations into suspicious activities, and it is their role to handle such matters. This step is necessary in addition to the normal processes that you currently engage in to ensure that any suspicious activity is properly investigated and reported. Filing a SAR with the Financial Crimes Enforcement Network may also be necessary depending on the outcome of the investigation. Doing nothing and allowing the loan to go through is not the appropriate course of action.

The statement is false because notifying the suspect that a SAR (Suspicious Activity Report) has been filed would potentially compromise the investigation and provide the suspect an opportunity to tamper with evidence or flee. The purpose of filing a SAR is to alert law enforcement or regulatory agencies about suspicious activities, not to inform the suspect. It is important to maintain the confidentiality of the investigation to ensure its effectiveness.

An SAR (Suspicious Activity Report) must generally be filed within 30 days after the initial detection. This allows enough time for the financial institution or individual to gather all necessary information and complete the report accurately. Filing an SAR within this timeframe ensures timely reporting of suspicious activities to the appropriate authorities, helping to prevent and detect potential financial crimes such as money laundering, fraud, or terrorist financing.

The statement suggests that the company can be sued by a customer for information contained in a SAR (Suspicious Activity Report). However, this is false. SARs are confidential reports submitted by financial institutions to government authorities to report suspicious activities. The information in a SAR is protected and cannot be used against the company in a lawsuit. Therefore, there is no need to be overly cautious about what is said to management regarding a customer and suspicious activity.

Suspicious activity in transactions involving funds greater than $5,000 has to be reported. This means that if any transaction involves an amount equal to or exceeding $5,000, it is required to be reported. This reporting is done to ensure transparency and to prevent illegal activities such as money laundering or fraud.

Using a nickname is not an example of a money laundering red flag because it is a common and acceptable practice for individuals to use nicknames in their daily lives. Money laundering red flags typically involve suspicious activities such as disconnected business telephone, using multiple social security numbers, and engaging in frequent or large transactions without any employment history. These activities raise concerns about the source of funds and the potential for illicit financial activities.

The statement suggests that you should investigate questionable activity only if it arises. However, this is not the case. It is important to be proactive and investigate any questionable activity, whether it has already arisen or not. By being proactive, you can prevent potential issues and address them before they escalate. Therefore, the correct answer is False.