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A customer has held an account at a local credit institution for 10 years. The account has received deposits twice weekly for the same amount and has never shown signs of suspect behavior. Monitoring software indicated that in the past few months the account has received several large deposits that were not in line with the account history. When asked, the customer states she recently sold a piece of property, which is supported with a proof of sale. What should the compliance officer do next?
A customer has held an account at a local credit institution for 10 years. The account has received deposits twice weekly for the same amount and has never shown signs of suspect behavior. Monitoring software indicated that in the past few months the account has received several large deposits that...
Federal law requires all U.S. financial institutions to secure and maintain all records and supporting documentation used m suspicious activity reporting for how many years?
Federal law requires all U.S. financial institutions to secure and maintain all records and supporting documentation used m suspicious activity reporting for how many years?A . 2 yearsB . 5 yearsC . 10 yearsD . No requirementView AnswerAnswer: B
A prospective AML officer comes highly recommended by a bank’s up-stream correspondent institution of similar size and make-up, located in a different city in the same country. The bank is interested in hiring the individual. What should be the next step taken by the Board of Directors?
A prospective AML officer comes highly recommended by a bank’s up-stream correspondent institution of similar size and make-up, located in a different city in the same country. The bank is interested in hiring the individual. What should be the next step taken by the Board of Directors?A . Do a...
Which two aspects of the security broker dealer industry increase its exposure to money laundering? Choose 2 answers
Which two aspects of the security broker dealer industry increase its exposure to money laundering? Choose 2 answersA . The routine use of wire transfers from, to or through multiple jurisdictionsB . They easy conversion of holdings to cash with significant loss of principalC . Disposing of cash through securities...
What is the term for trading through multiple accounts, where an individual generates offsetting profits and losses and transfers of positions through accounts that do not appear to be commonly controlled?
What is the term for trading through multiple accounts, where an individual generates offsetting profits and losses and transfers of positions through accounts that do not appear to be commonly controlled?A . Ponzi schemeB . Market ManipulationC . Net TradingD . Wash TradingView AnswerAnswer: D
What is a major money laundering risk associated with a number of prepaid cards as opposed to credit or debit cards?
What is a major money laundering risk associated with a number of prepaid cards as opposed to credit or debit cards?A . The risk of losing the prepaid cardsB . The inability to load the card with cashC . The global access to cash through ATMsD . The anonymous access...
According to experts, what is the most effective way to prevent money laundering through financial institutions?
According to experts, what is the most effective way to prevent money laundering through financial institutions?A . Ensuring that transaction monitoring systems can identify terrorist financingB . Collecting information on beneficial owners and foreign customersC . Instituting a policy prohibiting the acceptance of funds intended for terrorist financingD . Implementing...
What should senior management do in order to promote a culture of anti-money laundering compliance?
What should senior management do in order to promote a culture of anti-money laundering compliance?A . They should include compliance with AML procedures as condition of employmentB . They should attend all training sessions with front-line employmentC . They should have close ties with the independent auditors of the AML...
How do payable through accounts (PTAs) differ from normal foreign correspondent accounts?
How do payable through accounts (PTAs) differ from normal foreign correspondent accounts?A . The customers do not have to worry about sanctions list screening such as OFACB . The customers have the ability to directly control funds at the correspondent bankC . The customers can contact the correspondent bank directly...
Why is the Mutual Legal Assistance Treaty (MLAT) a gateway for international cooperation?
Why is the Mutual Legal Assistance Treaty (MLAT) a gateway for international cooperation?A . They provide a legal basis for transmitting evidence that can be used for prosecution and judicial proceedingsB . They receive reports of suspicious transactions from financial institutions to disseminate to local Law enforcement and foreign FIUsC...
