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Which aspect of the USA PATRIOT Act impacts foreign financial institutions?
Which aspect of the USA PATRIOT Act impacts foreign financial institutions?A . Requiring enhanced due diligence for foreign shell banks B. Expanding sanctions requirements to a U.S. financial institution’s foreign branches C. Expanding the anti-money laundering program requirements to all foreign financial institutions D. Providing authority to impose special measures...
Which supporting documentation might the law enforcement agency request from the institution to facilitate its investigation?
A law enforcement agency is reviewing a suspicious transaction report (STR) filed by a financial institution for suspicious activity on a client’s account. Subsequently, the agency requests further information. Which supporting documentation might the law enforcement agency request from the institution to facilitate its investigation?A . Previously filed STRs on...
What should the teller do after completing the transaction?
A customer comes into the bank and appears to be ill-at-ease waiting in the teller line. When the customer gets to the teller, he become exceedingly nervous and asks for a large cashier’s check to be cashed and disbursed to him in $100 bills. What should the teller do after...
What are two red flags that could indicate money laundering or financing terrorism?
A corporate services provider in a European Union (EU) country has a prospect from an African country who deals in oil and gas. The prospect intends to develop an oil terminal in his home country with a $75 million dollar loan secured by a third party, which is a trust...
Which element is generally required of all anti-money laundering programs?
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 customersView AnswerAnswer: B
Which actions are involved when a prosecutor instructs a bank to freeze the assets and bank accounts held by one of its clients? (Choose three.)
Which actions are involved when a prosecutor instructs a bank to freeze the assets and bank accounts held by one of its clients? (Choose three.)A . Inform other banks in the same geographical area to freeze the client's assets if they are a member of that bank, too. B. Extend...
Which trading pattern may be indicative of money laundering in capital markets?
Which trading pattern may be indicative of money laundering in capital markets?A . Free of payment asset transfer B. Remittance of a round dollar amount C. Trading on an account D. Transacting with multiple counterpartiesView AnswerAnswer: D Explanation: Reference: https://www.fatf-gafi.org/media/fatf/documents/reports/ML%20and%20TF%20in%20the%20Securities%20Sector.pdf
Which action should financial institutions with cross border correspondent banking activity be required to perform according to the Financial Action Task Force 40 Recommendations?
Which action should financial institutions with cross border correspondent banking activity be required to perform according to the Financial Action Task Force 40 Recommendations?A . Gather a list of their politically exposed customers B. Identify natural persons who own or control more than 5% C. Obtain senior management approval before...
Which key aspect of the Office of Foreign Assets Control's extraterritorial reach specifically relates to prohibited transactions?
Which key aspect of the Office of Foreign Assets Control's extraterritorial reach specifically relates to prohibited transactions?A . Prohibit or reject unlicensed trade and financial transactions with specified countries, entities, and individuals B. Prohibit or reject licensed trade and financial transactions with specified countries, entities and U.S. individuals C. Prohibit...
According to Basel Committee on Banking Supervision's Customer Due Diligence for Banks, which of the following should provide an evaluation of a bank's policies and procedures independent from its management?
According to Basel Committee on Banking Supervision's Customer Due Diligence for Banks, which of the following should provide an evaluation of a bank's policies and procedures independent from its management?A . The credit risk department B. The Board C. A peer institution D. The compliance functionView AnswerAnswer: D
