Certified Anti-Money Laundering Specialist v1.0

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Exam contains 446 questions

A compliance officer at an insurance company has been reviewing the transaction activity of several clients.
Which transaction is considered a red flag for potential money laundering?

  • A. A client paid the quarterly life insurance premium using money orders from two different banks.
  • B. A client from a high-risk jurisdiction recently purchased property insurance for a real-estate development.
  • C. A corporation owns several affiliates and recently opened separate group life insurance policies for each of the affiliates.
  • D. A client established a $100,000 charitable annuity with a non-profit organization that provides health and safety assistance internationally.


Answer : D

The branch manager notices that a number of customers come in weekly and always use the same teller to process their deposits. The manager notices that the customers and the teller, who are from the same ethnic group, are speaking in a foreign language and every once in a while the customers from local ethnic restaurants will bring the teller lunch. The commercial customers that visit the teller generally deposit the same amount of cash each time they come in.
How should the branch manager respond to this activity?

  • A. Transfer the teller to another branch
  • B. Conduct further investigation before taking any other action
  • C. Encourage the teller to bring in more business from the ethnic community
  • D. Suggest to the teller to send the customers to other tellers to avoid the opportunity for collusion


Answer : B

A law enforcement official calls a bank inquiring about a customer who is currently under investigation. The law enforcement official requests information about the customer.
How should the bank respond?

  • A. Confirm the customer is either a current or former customer
  • B. Inform the board of directors before responding to the request
  • C. Provide the requested information to help aid in the investigation
  • D. Request a formal letter be submitted to verify the validity of the request


Answer : D

Reference:
https://ico.org.uk/for-organisations/guide-to-freedom-of-information/receiving-a-request/

A bank compliance officer has implemented enhanced monitoring rules that have identified some unusual activity that may be indicative of human trafficking.
Which red flag should prompt additional transactional review?

  • A. Wire transfer activity from countries with significant migrant populations
  • B. Cash deposits that occur in cities where the customer resides and conducts business
  • C. Cash deposits that occur in cities where the customer does not reside or conduct business
  • D. Cash deposits that occur in cities where the customer does not reside or conduct business followed by same-day withdrawals


Answer : C

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. When an intermediary introduces clients to the bank, it is not necessary for the bank to perform due diligence on the intermediaryג€™s clients.
  • B. Where an intermediary introduces clients to the bank, the bank must obtain the same type of information with respect to an introduced client that would otherwise be obtained by the bank, absent the involvement of the intermediary.
  • C. Where an intermediary manages assets on behalf of a number of clients and is the account holder with the bank, but that intermediary does not conduct the same level of due diligence as the bank, it is necessary for the bank to undertake due diligence on the intermediaryג€™s clients.
  • D. Where an intermediary manages assets on behalf of a number of clients and arranges for the opening of accounts for its clients with the bank, and that intermediary is a financial institution subject to similar regulations, it is necessary for the bank to perform due diligence on the intermediaryג€™s clients.


Answer : BD

Reference:
https://www.wolfsberg-principles.com/sites/default/files/wb/pdfs/faqs/20.%20Wolfsberg-FAQs-on-Intermediaries-May-2012.pdf
(2)

A non-U.S. bank wants to open an account at Bank A, which is a U.S.-based bank.
Which information must Bank A obtain under the USA PATRIOT Act?

  • A. A complete client list from the non-U.S. bank
  • B. The identity of owners and percentage of ownership of the non-U.S. bank
  • C. The structure and identity of the management team at the non-U.S. bank
  • D. The details of the non-U.S. bankג€™s anti-money laundering compliance training program


Answer : C

Which insurance product is particularly vulnerable to money laundering?

  • A. Annuity
  • B. Casualty
  • C. Collateral
  • D. Regulated pension


Answer : A

What is an essential element of Know Your Customer (KYC) standards according to the Basel Committee's Customer Due Diligence for Banks paper?

  • A. Annual staff training
  • B. A customer acceptance policy
  • C. The same KYC requirements must be applied in all cases
  • D. All completed KYC documents must be reviewed by a senior manager not involved in the account opening process


Answer : B

Reference:
https://www.bis.org/publ/bcbs77.pdf

A foreign bank operating under an offshore license wants to open a correspondent account with a United States (U.S.) bank. The foreign bank plans to provide payable through account services to some of its customers.
What must the foreign bank provide to the U.S. bank under the USA PATRIOT Act?

  • A. A list of politically exposed persons who are owners of the correspondent bank
  • B. A list of account holders at the financial institution who will use the payable through account
  • C. The person in the United States who can receive service of legal process for the correspondent bank
  • D. A list of anti-money laundering training records for the financial institution employees monitoring payable through account transactions


Answer : A

Reference:
https://www.wolfsberg-principles.com/sites/default/files/wb/pdfs/CBDDQ-Capacity-Building/Wolfsberg%
27s_CBDDQ_Capacity_Building_Guidance_Final%20V1.1.pdf

An institution has made the decision to exit a client relationship due to anti-money laundering concerns. Prior to starting the close out process, the institution receives a written request from a law enforcement agency to keep the account open. The client is the subject of an ongoing investigation and law enforcement wants the institution to continue to monitor the account and report any suspicious activity.
What is a primary consideration the institution should keep in mind when deciding whether to agree to this request?

  • A. The anticipated cost of complying with the law enforcement request
  • B. The number of suspicious transaction reports previously filed on the client
  • C. The fact that the institution has a solid record in complying with law enforcement requests
  • D. Whether the institution can continue to meet its regulatory obligations with the accounts open


Answer : D

An immigrant residing in the United States opens a bank account that includes a debit card. Several months later, the transactional monitoring system identifies small deposits into the account followed by corresponding ATM withdrawals from a country bordering a conflict zone.
How should the bank respond?

  • A. Block any further activity
  • B. File a suspicious transaction report
  • C. Initiate an investigation into the activity
  • D. Contact the customer if the transaction activity continues


Answer : C

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 deposits
  • B. The client resides in a high-risk jurisdiction
  • C. Wire transfers are to high-risk jurisdiction
  • D. Large cash deposits are from a high-risk jurisdiction


Answer : CD

Reference:
https://aml-cft.net/library/banks-amlcft-red-flags/

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 delivered to employees of the newly acquired credit card business?

  • A. Yes, the existing training covers the bankג€™s policies, procedures, and processes.
  • B. No, anti-money laundering training needs to be delivered face-to-face for credit card businesses.
  • C. No, anti-money laundering training needs to be tailored and focused on the risks specific to the business.
  • D. Yes, the existing training covers the anti-money laundering regulations that the bank is required to follow.


Answer : D

Which method do terrorist financiers use to move funds without leaving an audit trail?

  • A. Extortion
  • B. Cash couriers
  • C. Casa de cambio
  • D. Virtual currency


Answer : B

Reference:
https://www.fatf-gafi.org/media/fatf/documents/reports/FATF%20Terrorist%20Financing%20Typologies%20Report.pdf
(24)

Why do governments and multi-national bodies impose economic sanctions?

  • A. To impede kleptocracy
  • B. To enforce foreign policy objectives
  • C. To combat an imminent terrorist threat
  • D. To prevent fraudulent international trade transactions


Answer : B

Reference:
https://en.wikipedia.org/wiki/Economic_sanctions

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Exam contains 446 questions

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