An anti-money laundering analyst is reviewing a new customer list to confirm potentially high risk customers have been identified and subject to enhanced due diligence.

Which new customer warrants enhanced due diligence?

What are three factors a financial institution should examine with regard to a new customer who is opening up a new account? Choose 3 answers

An account officer who maintains an excellent relationship with the finance manager for a correspondent bank customer learns that many records for the correspondent bank have been requested by law enforcement. In the interest of maintaining a good relationship with the customer, the account officer sets up a meeting to discuss the legal request with the customer. The account officer intends to discuss points related to the investigation during the meeting.

What should an anti-money laundering specialist recommend?

A benefit of using bearer shares in corporate formations is that bearer shares are:

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 primary consideration the institution should keep in mind when deciding whether to agree to this

request?

What is the most effective criterion for determining the beneficial ownership of funds?

An audit completed the previous week revealed that a private banking customer submitted incomplete documents when establishing an account earlier in the year. The customer received weekly electronic fund transfers from a narcotic-producing jurisdiction.

While the Relationship Manager who opened the account is on leave for 5 weeks, the customer requests that the institution remit a substantial sum to a country that represents a high risk of money laundering.

The Relationship Manager is a friend of the anti-money laundering specialist. Which of the following should the anti-money laundering officer do first?

What do the Financial Action Task Force (FATF) mutual evaluations of each member assess?

What are two requirements with respect to supporting documentation that is used to identify potentially

suspicious activity, according to Financial Action Task Force? (Choose two.)

A customer has held an account at a bank and has lived locally for over 25 years. Historically he has come

into the bank monthly to deposit a $1,500 retirement check from the company where he worked. He is well

known at the bank and often brings the staff cookies. Over the past four months, he has come into the bank

every Monday, Wednesday, and Thursday to make $3,000 cash deposits into his account. A review of his

account shows that an $8,500 check made out to cash clears his account each week. The bank has decided

to file a suspicious transaction report (STR).

What is the important fact to include in the STR?

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?

According to the Financial Action Task Force 40 Recommendations, Designated Non-Financial Businesses and Professions include

A new AML Officer for a US-based money service business (MSB) is drafting procedures around types of activity that require further review. Which should be included? (Choose two.)

A commission rogatory would be used in which gateway to obtain information from another country?

In reviewing recent activity, a compliance officer for a money transmitter that several customers are each

remitting the same amount of money but much more frequently.

How should the institution respond?

Which action indicates possible Penza scheme activity?

An internal investigation log is primarily intended to:

Why is the Mutual Legal Assistance Treaty (MLAT) a gateway for international cooperation?

An anti-money laundering specialist at a financial institution has received a legal request to provide all transaction records for a specific individual since 2004. Which of the following item s should be delivered?

1. Monthly statements and transaction activities for that individual since 2004.

2. All wire transfers for that individual since 2004.

3.Signature cards from accounts opened by that individual since 2004.

4. All security trading activities for that individual since 2004.

Which product is considered to be of highest money laundering risk?

The Wolfsberg Principles for Private Banking list circumstances that would require additional due diligence, including activities that involve which three of these choices?

How does the Financial Acton Task Force (FATF) communicate its findings regarding jurisdictions with

strategic anti-money laundering / Counter Financing of Terrorism deficiencies?

What are two sources for maintaining up-to-date sanctions information? (Choose two.)

What are two reasons physical certificates present a money laundering risk to broker-dealers? (Choose two.)

A branch manager for a small community bank has a new customer who deposits for EUR 50,000 checks into one account. Shortly thereafter, the customer goes to another branch and asks to transfer all but EUR 1,500 to three accounts in different foreign jurisdictions.

Which suspicious activity should be the focus of the suspicious transaction report?

The bank for International Settlements provides the secretariat for which organization?

An anti-money laundering specialist working at a bank just received a legal request from a law enforcement agency mandating the release of all financial transaction records relating to an account at the bank. The specialist immediately recognizes the account as one owned by the bank Chief Executive Officers brother. During research to gather the requested documents, the specialist finds several internal memos he had sent to the bank president with concerns regarding possible suspicious activity relating to this account. The specialist recalls the bank president verbally responded to each memo with an explanation of the activity and indicated there was no cause for concern. What should the specialist do with respect to these internal memos?

A law enforcement agent calls a bank anti-money laundering investigator for supporting information about a

suspicious transaction report that was filed the previous month.

How should the investigator respond?

The compliance officer for a private bank has been tasked with reviewing the procedure for authorized signatories on customer accounts to ensure it is in line with relevant Wolfsberg Anti-Money Laundering Principles for Private Banking.

Which three statements from the procedure are in line with Wolfsberg? (Choose three.)

A financial institution receives a regulatory enforcement action because of deficiencies in its anti-money

laundering program.

Which action should the board of directors take?

A compliance officer for a casino may suspect money laundering if an individual:

What are the European Union Directives on Money Laundering?

What are the regulatory risks to a bank employee who willfully violates anti-money laundering laws?

What is an example of the integration stage of money laundering involving a bank or another deposit-taking institution?

A bank employee recently opened an account for a new restaurant. Daily cash deposits over a three-month

period are close to $9,500.

What are two red flags that indicate possible money laundering or terrorist financing? (Choose two.)

In which situation can money laundering adversely affect a country’s currencies and interest rates due to launderers investing dirty funds?

The board of directors receives notice from the primary regulator of the bank that potentially suspicious activity has been identified and the bank president appears to be involved. The Board asks the compliance officer for advice.

Which action should the compliance officer take when informed?

Which statements regarding the USA PATRIOT ACT best describe key aspects that have extraterritorial reach? (Choose three.)

Which method to finance terrorism involves falsifying transaction-related documents?

Which Trust parties should be identified to determine the true nature of the Trust relationship according to Basel guidelines? (Choose three.)