QUESTION NO: 1
During a review of its compliance program, XYZ Bank discovers that it has processed transactions involving individuals and entities on the Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) list. What is the most appropriate action for XYZ Bank to take?
During a review of its compliance program, XYZ Bank discovers that it has processed transactions involving individuals and entities on the Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) list. What is the most appropriate action for XYZ Bank to take?
Correct Answer: A
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QUESTION NO: 2
You are a money laundering investigator at a financial institution. You discover that the target of one of your cases was your direct supervisor during previous employment.
How should you proceed?
You are a money laundering investigator at a financial institution. You discover that the target of one of your cases was your direct supervisor during previous employment.
How should you proceed?
Correct Answer: A
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QUESTION NO: 3
Old Stuff Inc is a high-end antique dealer They regularly have large sales to customers from around the globe.
Recently its account has been receiving several high-value fund transfers from a single overseas company and most of the money is substantially remitted back to the customer in a single transaction as refunds.
This is a red flag for which type of money laundering scheme?
Old Stuff Inc is a high-end antique dealer They regularly have large sales to customers from around the globe.
Recently its account has been receiving several high-value fund transfers from a single overseas company and most of the money is substantially remitted back to the customer in a single transaction as refunds.
This is a red flag for which type of money laundering scheme?
Correct Answer: A
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QUESTION NO: 4
During an organizational overview of financial crime controls, Mr. Thompson, the compliance manager, identifies a lack of adequate training for frontline staff on recognizing and reporting suspicious activities.
What is the most effective way for Mr. Thompson to address this issue?
During an organizational overview of financial crime controls, Mr. Thompson, the compliance manager, identifies a lack of adequate training for frontline staff on recognizing and reporting suspicious activities.
What is the most effective way for Mr. Thompson to address this issue?
Correct Answer: A
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QUESTION NO: 5
Your bank has recently received an online application for a new business account from a company named ACE Operations, LLC By reviewing the operating agreement and other documents included in the application, you determine that ACE is incorporated in the U S state of Wyoming.
A review of the Wyoming corporate registry online shows that ACE was formed 15 years ago. An initial Internet search produces no company website or further information about the company. The registered agent's contact information and address on the company's most recent annual filing is for Capital Solutions a corporate services provider.
Concerned that ACE Operations appears to be a shelf corporation you are conducting further due diligence on the company's ownership structure Which is the MOST appropriate next step to take?
Your bank has recently received an online application for a new business account from a company named ACE Operations, LLC By reviewing the operating agreement and other documents included in the application, you determine that ACE is incorporated in the U S state of Wyoming.
A review of the Wyoming corporate registry online shows that ACE was formed 15 years ago. An initial Internet search produces no company website or further information about the company. The registered agent's contact information and address on the company's most recent annual filing is for Capital Solutions a corporate services provider.
Concerned that ACE Operations appears to be a shelf corporation you are conducting further due diligence on the company's ownership structure Which is the MOST appropriate next step to take?
Correct Answer: C
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QUESTION NO: 6
The automated transaction monitoring system at a bank that is headquartered in Japan has generated a case for a customer located in the U S whose activity was more than 50% above its expected activity Hall of the transactional activities are with countries in Asia.
An investigation into this case by the compliance department should include which three steps? Choose 3 answers
The automated transaction monitoring system at a bank that is headquartered in Japan has generated a case for a customer located in the U S whose activity was more than 50% above its expected activity Hall of the transactional activities are with countries in Asia.
An investigation into this case by the compliance department should include which three steps? Choose 3 answers
Correct Answer: A,B,D
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QUESTION NO: 7
Country A is conducting a criminal investigation of alleged corruption by a public official in its country and needs to obtain bank records in Country B It appears that the public official controls the bank account.
To assure that the evidence (i.e. bank records) can be obtained for a trial in Country A which should the investigators in Country A do?
Country A is conducting a criminal investigation of alleged corruption by a public official in its country and needs to obtain bank records in Country B It appears that the public official controls the bank account.
To assure that the evidence (i.e. bank records) can be obtained for a trial in Country A which should the investigators in Country A do?
Correct Answer: B
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QUESTION NO: 8
A hacker gains access to aclient'semail. The hacker, posing as the client contacts the real client's financial advisor and requests a wire transfer of S50,000 The advisor sells stock to generate cash and wires the funds to the account at ABC Bank provided by the hacker Has money laundering occurred?
A hacker gains access to aclient'semail. The hacker, posing as the client contacts the real client's financial advisor and requests a wire transfer of S50,000 The advisor sells stock to generate cash and wires the funds to the account at ABC Bank provided by the hacker Has money laundering occurred?
Correct Answer: D
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QUESTION NO: 9
You are investigating a steel company that is under suspicion of being used by a mafia organization as a conduit for illicit funds transfers and commodities transactions You come across documents of a len-ton shipment of low-grade industrial steel bars for Thailand divided into one-ton containers.
Which is the BEST indicator that this shipment is suspicious and requires additional investigation?
You are investigating a steel company that is under suspicion of being used by a mafia organization as a conduit for illicit funds transfers and commodities transactions You come across documents of a len-ton shipment of low-grade industrial steel bars for Thailand divided into one-ton containers.
Which is the BEST indicator that this shipment is suspicious and requires additional investigation?
Correct Answer: D
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QUESTION NO: 10
Your bank is considering entering into a correspondent relationship with a respondent bank Your bank does not have any existing business relationship with this respondent bank and has never worked with the respondent bank in the past.
Based upon FATF Recommendations which statement is true?
Your bank is considering entering into a correspondent relationship with a respondent bank Your bank does not have any existing business relationship with this respondent bank and has never worked with the respondent bank in the past.
Based upon FATF Recommendations which statement is true?
Correct Answer: A
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QUESTION NO: 11
A client is introduced to a bank by an intermediary The intermediary is a reputable financial institution that is regulated in a foreign FATF compliant jurisdiction Regulation applicable to the bank requires the bank conduct due diligence with respect to the intermediary's clients Which statement is true in this situation according to the 2012 Wolfsberg Principles on Intermediaries?
A client is introduced to a bank by an intermediary The intermediary is a reputable financial institution that is regulated in a foreign FATF compliant jurisdiction Regulation applicable to the bank requires the bank conduct due diligence with respect to the intermediary's clients Which statement is true in this situation according to the 2012 Wolfsberg Principles on Intermediaries?
Correct Answer: B
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QUESTION NO: 12
Mr. Johnson, a compliance officer at ABC Corporation, is conducting due diligence on a potential business partner based in a foreign country. During the due diligence process, Mr. Johnson discovers that the potential partner's principal shareholder is a politically exposed person (PEP) from a country subject to OFAC sanctions. What is the most appropriate action for Mr. Johnson to take?
Mr. Johnson, a compliance officer at ABC Corporation, is conducting due diligence on a potential business partner based in a foreign country. During the due diligence process, Mr. Johnson discovers that the potential partner's principal shareholder is a politically exposed person (PEP) from a country subject to OFAC sanctions. What is the most appropriate action for Mr. Johnson to take?
Correct Answer: C
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