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What is considered a red flag for potential money laundering in this situation?
A bank has opened a new account for a well-known attorney to manage client funds. During the first six months, bank staff observe the account receives multiple deposits via wire transfer. They also observe that the attorney withdraws cash, makes payments to various people, and transfers funds to the law...
Trusts established in certain offshore jurisdictions make good vehicles to lay under money for which of the following reasons?
Trusts established in certain offshore jurisdictions make good vehicles to lay under money for which of the following reasons?A . Names of the settlor and beneficiaries are into publicly available. B. Trusts are typically set up to minimize taxes. C. Offshore jurisdictions are unfamiliar with trust. D. Trusts may hold...
A benefit of using bearer shares in corporate formations is that bearer shares are:
A benefit of using bearer shares in corporate formations is that bearer shares are:A . widely accepted in the financial world. B. entered in the register of owners. C. associated with lower costs in setting up a company. D. easily transferred so the holder claims ownership.View AnswerAnswer: D Explanation: Reference:...
Which is a key role of FATF-Style Regional Bodies (FSRBs)?
Which is a key role of FATF-Style Regional Bodies (FSRBs)?A . Support the system of mutual evaluation B. Setting regional standards for combatting money laundering C. Bring additional terrorist financing laws into action in the region D. Enforce the specific FATF laws in the regionView AnswerAnswer: A
Upon filing a suspicious transaction report, which of th following elements should be the highest anti-money laundering priority in making the decision to keep the account open?
Upon filing a suspicious transaction report, which of th following elements should be the highest anti-money laundering priority in making the decision to keep the account open?A . Financial impact on the institution if the account is closed. B. Procedures to ascertain the potential risk to the organization. C. Additional...
Which two aspects should be included in the policy in respect of intermediaries to align it with the Wolfsberg Anti-Money Laundering Principles for Private Banking?
The compliance officer for a private bank has been tasked with writing a policy on how the bank will deal with intermediaries. Which two aspects should be included in the policy in respect of intermediaries to align it with the Wolfsberg Anti-Money Laundering Principles for Private Banking? (Choose two.)A ....
What are two red flags that may indicate money laundering?
A customer living in a high-risk jurisdiction makes frequent, large cash deposits at a bank. The same customer sends small wire transfers to unrelated parties in other high-risk jurisdictions. What are two red flags that may indicate money laundering? (Choose two.)A . The bank allows cash depositsB . The client...
What is the correct next course of action?
A compliance officer learns from an Information Technology (IT) source of a potential new financial service being discussed by the new product approval committee. What is the correct next course of action?A . Request that the new product approval committee include the compliance officer.B . Go to the board of...
Which type of scenario is helpful in mitigating this weakness?
An organization’s automated surveillance system identifies large fluctuations in customer activity. As a result of an audit, the compliance officer is informed that the system is not generating alerts when activity is consistently abnormal over a long period of time. Currently the organization is evaluating new alert scenarios in an...
To whom should the investigator escalate these concerns?
Upon a routine account review a money laundering investigator identified a number of large round dollar wire transfer deposits into a business account owned by a local auto repair shop. The wire transfers all originated from a country that is a known financial secrecy haven with poor anti-money laundering controls....
