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Question 46 Selectable Answer

An employee hears a colleague on the telephone with a customer giving advice on how to ensure that asuspicious transaction report will not be filed as a result of a future transaction.
What action should the employee take?

A. Report the conversation to the local police
B. Report the conversation to the compliance officer
C. Tell the colleague that it is against policy to give such advice
D. Ignore the situation because the colleague is the relationship manager for that customer

Answer:

Question 47 Selectable Answer

Which method is used to launder money via wire remittances sent through a bureau de change or moneyservices business?

A. A customer in country A makes a weekly small wire transfer to the bank account of an individual in country
B. A customer in country A makes frequent wire transfers to a single customer in country B that are slightlyunder the legal reporting threshold.
C. A large number of wire transfers are sent from a large number of senders in country A to a large number ofrecipients in country B during the period of December 1 to December 15.
D. A customer in country A receives four small wire transfers from four different individuals located in countryB on December 21. The aggregate of the wire transfers falls below the legal reporting threshold.

Answer:

Question 48 Selectable Answer

Why are Money Services Business (MSBs) frequently accused of being high risk for money laundering?

A. A MSB should be used to hide money from a regulated entity
B. MSBs generally charge lower commission rates than banks charge making them attractive to criminals
C. MSBs can route funds to more high risk countries than banks
D. MSBs are subject to regulatory scrutiny which varies greatly from country to country

Answer:

Question 49 Selectable Answer

Which private banking situation requires due diligence actions to be implemented according to the AML principles of the Wolfsberg group?

A. A local wealthy individual wants to become a customer of a local retail bank.
B. A beneficial owner of an exchange house wants to open an account with the bank.
C. A wealthy individual from a high-risk country wants to open an account with a private bank.
D. A new customer asks to set up an exchange house using the bank as the correspondent.

Answer:

Question 50 Selectable Answer

A U.K. real estate agent has three foreign clients interested in purchasing an apartment building, valued at £30million, in the outskirts of London as an investment property. The clients are not willing to have their namesprovided to the bank. The clients want to purchase to be made in the names of three private companies forprivacy reasons. The plan is to wire the funds into an account held in the name of another private company ata bank in London.
Which red flag should stop the agent from discussing this potential purchase further?

A. The clients are foreign
B. The clients have the funds necessary to fund a £30 million purchase
C. The clients are not willing to have their names provided to the bank
D. The clients want to purchase to be made in the names of the private companies

Answer:

Question 51 Selectable Answer

What are three indicators of money laundering associated with using electronic funds transfers? Choose 3 answers

A. Funds transfers to or from a financial secrecy haven without an apparent business reason
B. Regular and frequent transfers from the account of a large company said to be payment for goods bought on credit
C. Funds transfers are received or sent from the same person to or from different accounts
D. Payment or receipts with no apparent link to legitimate contracts, goods or services

Answer:

Question 52 Selectable Answer

To guard against acquisition or control of a financial institution by money launderers or their associates, what should supervisory agencies require?

A. Adequate surety bonds, cash deposits, or equivalencies
B. Comprehensive compliance programs
C. Prospective owners have prior experience in the area of finance
D. Thorough due diligence on prospective owners

Answer:

Question 53 Selectable Answer

When an institution files an STR with regard to a particular account, what steps should the institution take visa account?

A. The institution should close the account due to the obvious risk it represents
B. The institution should keep the account open due to the need to continue to monitor the account
C. The institution should consult its counsel and AML compliance officer and determine whether closing the account is in accord with the institution’s procedures
D. The institution should not close the account due to the risk of tipping off the customer and upsetting the criminal investigation

Answer:

Question 54 Selectable Answer

An anti-money laundering specialist at a large institution is responsible for information senior management about the status of the anti-money laundering program across the organization.
Which report is the most useful?

A. The total credit exposure for non-cooperative countries and territories
B. Results of related audits and examinations
C. Details on inquires received from law enforcement
D. Notification of management changes in the different major divisions

Answer:

Question 55 Selectable Answer

Historically, which vehicle is most often used to hide beneficial ownership?

A. Professional association
B. An offshore company
C. A limited liability partnership
D. A charitable organization

Answer:

Question 56 Selectable Answer

Which two statements are true regarding the European Union Money Laundering Directives? (Choose two.)

A. They apply to member states of the European Union
B. They require member states to enact laws and/or regulations to comply with the directives
C. They set forth non-binding best practices for financial institutions within the member states
D. They have extraterritorial impact and apply to states that have diplomatic relations with member states

Answer:
Explanation:
Reference: https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32015L0849&from=FR

Question 57 Selectable Answer

Which action should countries take related to the financing of terrorist acts in accordance with the FinancialAction Task Force 40 Recommendations?

A. Oppose
B. Sanction
C. Prosecute
D. Criminalize

Answer:
Explanation:
Reference: https://www.fatf-gafi.org/publications/methodsandtrends/documents/fatf-action-against-terroristfinancing-feb-2019.html

Question 58 Selectable Answer

Which of the following customers require the most enhanced due diligence?

A. A resident of a non-cooperative jurisdiction.
B. An international business corporation.
C. A politically exposed person.
D. An established customer.

Answer:

Question 59 Selectable Answer

What is an example of a legal risk a financial institution (FI) could face if it is sanctioned for failure to report suspected fraud activity?

A. Foreign correspondents could terminate their relationships with the sanctioned bank.
B. Clients of the bank might draw down the reserves of the bank and lead to liquidity issues.
C. The bank could be forced to reimburse the victims of the fraudster for the lossessuffered.
D. The bank could see higher default rates on loans granted to companies owned by the fraudster.

Answer:

Question 60 Selectable Answer

Which element is generally required of all anti-money laundering programs?

A. A computer-based suspicious activity monitoring system
B. A qualified compliance officer to manage the program
C. Annual in-person AML training for all employees
D. An enhanced due diligence program for all new customers

Answer:

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