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A quarterly review is conducted on a retail customers account at a bank located in a jurisdiction with currency reporting thresholds. A number of large deposits of financial instruments drawn on other institutions in amounts under thresholds were noted. This activity did not fit the accounts historical profile. A suspicious transaction report will most likely be filed if what also occurred?
A quarterly review is conducted on a retail customers account at a bank located in a jurisdiction with currency reporting thresholds. A number of large deposits of financial instruments drawn on other institutions in amounts under thresholds were noted. This activity did not fit the accounts historical profile. A suspicious...
How should the request be processed to mitigate risk?
A foreign politically exposed person (PEP) requests to add a beneficiary to a file insurance policy. How should the request be processed to mitigate risk?A . Perform due diligence on the beneficiary B. Determine the source of wealth and source of funds C. Decline the request if the beneficiary is...
Is the bank’s existing anti-money laundering training adequate to be delivered to employee of the newly acquired credit card business?
A retail bank has just acquired a credit card business. The bank’s anti-money laundering policy requires that new employees are trained within 30 days of their hire date and refresher training is delivered to all employees on an annual basis. Is the bank’s existing anti-money laundering training adequate to be...
Which action should be included in the evaluation of system settings?
An organization uses an automated surveillance system that generates a very large volume of anti-money laundering alerts. The monthly volume of alerts has increased over the last year causing the compliance staff to fall significantly behind reviewing the alerts. As a result, the system settings are under review to determine...
What should the compliance officer do?
The branch manager calls the compliance officer and informs her that a law enforcement officer has just left the branch and was asking a lot of QUESTION NO:s and left a business card. What should the compliance officer do?A . File a suspicious transaction report B. Follow up to verify...
According to the Financial Action Task Force 40 Recommendations, Designated Non-Financial Businesses and Professionals include which entities?
According to the Financial Action Task Force 40 Recommendations, Designated Non-Financial Businesses and Professionals include which entities?A . Commodities traders B. Money services businesses C. Hawala operators D. Real estate agentsView AnswerAnswer: D Explanation: Reference: http://www.fatf- gafi.org/media/fatf/documents/recommendations/pdfs/FATF%20Recommendations%20(app roved%20February%202012)%20reprint%20May%202012%20web%20version.pdf (page 19, DNFBPs: customer due diligence, bulleted point (b))
Which factor causes the compliance officer to update the bank’s risk assessment?
A new compliance officer is reviewing the bank’s anti-money laundering program and notices that the risk assessment was completed six months ago. Since that time, the bank acquired another financial institution, renamed the internal records group, and streamlined cash handling procedures. Which factor causes the compliance officer to update the...
Which two things must the vice president acquire under the USA PATRIOT Act?
The vice president of the foreign correspondent banking department at a large United States bank has been notified that a foreign bank with an offshore license wants to open a correspondent account. Which two things must the vice president acquire under the USA PATRIOT Act? (Choose two.)A . A list...
Which action by the charity indicates possible terrorist financing?
A bank has maintained an account for a European charity for several years. The charity provides clothing to persons in need in various countries with active terrorists’ cells. Which action by the charity indicates possible terrorist financing?A . The charity frequently withdraws cash from the bank B. The charity has...
Which information should be included in the review of the customer’s activity?
A compliance officer is reviewing the activity of the wire transfer department for the previous month and identifies an unusual wire transfer from a customer’s account. Which information should be included in the review of the customer’s activity?A . Records of the recent deposit activity B. Wire transfer requests initiated...
