AMLCA Quiz 50

In 2014 Israeli based institution, Bank Leumi Bank admitted that it assisted more than 1,500 US taxpayers in:

I. Disclosing their assets in Bank Leumi’s offshore affiliates in England & Wales.

II. Hiding their assets in Bank Leumi’s offshore affiliates in Switzerland and Luxembourg.

III. Hiding their income tax in Switzerland and Luxembourg.

IV. Escaping from Switzerland after illegal bank transactions.

V. Developing personal relations with Bank’s Staff.

According to FATF’s International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation (2012):

I. There are two types of Politically Exposed Persons (PEPs).

II. There are three types of Politically Exposed Persons (PEPs).

III. There are four types of Politically Exposed Persons (PEPs).

IV. There are five types of Politically Exposed Persons (PEPs).

V. There are six types of Politically Exposed Persons (PEPs).

Which statement best describes Foreign PEPS:

I. Individuals who are or have been entrusted with prominent public functions by a foreign country.

II. Team or groups who are or have been entrusted with prominent public functions by a foreign country.

III.Individuals who are or have been entrusted with private functions by a residing country.

IV. Individuals who are not entrusted with private functions by residing country.

V. Team or groups who are or have been entrusted with private functions by a foreign country.

Select all that applies

Identify some examples of Domestic PEPs:

I. Heads of state or government

II. Senior politicians

III. Head of a family

IV. Associate professors

V. Senior government

Select all that applies

What were the charges against Mario Villanueva?

I. He facilitated the smuggling of 200 tons of cocaine into the US.

II. He facilitated terrorist financing into the US.

III. He maintained private banking accounts at Lehman Brothers containing approximately $20 million received as bribes from Mexican drug traffickers.

IV. He maintained correspondent bank accounts at Lehman Brothers for corruption.

V. He maintained correspondent bank accounts at Lehman Brothers for money laundering.

Select TWO PEPs who were involved in the Riggs Bank case, a case that revealed a web of transactions involving hundreds of millions of dollars:

I.Pavel Lazarenko of Ukraine.

II.Micheal John of France.

III. Augusto Pinochet of Chile.

IV.Teodoro Obiang of Equatorial Guinea.

V.Omar Bongo of Central Africa.

Which statement best describes STRUCTURING?

I. Cash transaction to evade bank statements & recordkeeping requirement is called structuring.

II. Designing a transaction to evade triggering a reporting or recordkeeping requirement is called structuring.

III. Designing a terrorist financing plan to evade triggering a reporting or recordkeeping requirement is called structuring.

IV. Interest plan to protect from regular installments requirement is called structuring.

V. Designing a market plan for generating maximum revenue is called structuring.

Select all that applies:

Select all the methods of  detecting micro-structuring among them:

I. The use of counter deposit slips as opposed to preprinted deposit slips

II. Cash deposits followed by ATM withdrawals, particularly in low-risk countries.

III. Cash deposits followed by ATM withdrawals, particularly in higher-risk countries.

IV. Cash deposits made into business accounts by third parties with no apparent connection to the company

V.The use of counter-statement slips as opposed to printed cash slips

Select all that applies:

Which statements hold true for Credit Unions?

I. Credit unions maintain personal relations with their costumers.

II. Credit unions do not participate in trade-based financing.

III.  Credit unions will not facilitate correspondent banking relationships.

IV.  Credit unions will always facilitate correspondent banking relationships.

V.  Credit unions will not maintain large corporate relationships.

Select all that applies:

Select all the statements that are included in the credit card industry:

I. Credit card associations, such as American Express, Master Card restricts license members to initiate money laundering services

II.Credit card associations, such as American Express, MasterCard, and Visa, which license member banks to issue bankcards

III.Acquiring banks, which process transactions for merchants who accept credit cards

IV.Issuing warning letters, which solicit terrorist financing and issue credit cards

V. Issuing banks, which solicit potential customers and issue the credit cards

Select all that applies:

What are the risks posed by Third-party payment processors?

I. The TPPP may maintain personal relationships with Bank’s staff

II. The TPPP may maintain relationships at multiple institutions

III.High Return Rates from Unauthorized Transactions

IV.TPPPs can be used by criminals to mask transactions and launder the proceeds of crime

V. TPPPs can be used by politicians to mask legal transactions

Select all that applies:

Identify the  well-known money transmitters among them:

I.Western Union

II.Eastern Union

III. MoneyGram

IV.MoneyMatters

V. PayPal

According to the World Bank, in 2015 the market capitalization of listed companies alone totaled:

I. Over US$ 50.7 hundred

II. Over US$ 50.7 thousand

III. Over US$61.7 trillion

IV. Over US$ 1.5 million

V. Over US$ 20 million

Select all that applies

When a company assesses laundering and terrorist financing risks, it must consider whether it permits customers to:

I. Use cash or cash equivalents to purchase insurance products

II. Use bitcoins for purchasing insurance products

III. Purchase an insurance product with a single premium or lump-sum payment.

IV. Borrow money against an insurance product’s value

V. Lend money against an insurance product’s value

Select all that applies

What are the greatest money laundering vulnerabilities according to the 2009 FATF Money Laundering and Terrorist Financing typologies report:

I. Wholesale markets

II. Unregulated funds

III. Wealth management

IV.Foreign Aid

V.Investment funds

Select all that applies

What services does The insurance industry provide to a variety of consumers worldwide?

I. Ownership transfer

II Risk transfer

III. Savings

IV. Investment products

V. Management products

According to FATF in its 2004-2005 typologies report, across the whole insurance sector, life insurance appears to be:

I. The area is most attractive to money launderers.

II. The area is most attractive to terrorist financiers.

III. The area is mostly hidden to money launderers.

IV. The area not liked by terrorist organizations.

V. The area is most liable for security risks.

Which statement best describes annuities?

I. Annuities are another type of  immigrant policy with cash value

II. Annuities are another type of real estate policy with no cash value

III. Annuities are another type of business policy with huge cash value

IV. Annuities are another type of investment policy with no cash value

V. Annuities are another type of insurance policy with cash value

Identify an  indicator of possible money laundering among them:

I.When a potential policyholder is more interested in a policy’s durational terms than its payment methods.

II. When a potential policyholder is more interested in a policy’s cancellation terms than its benefits.

III. When a potential policyholder is more interested in annual payment methods for a life insurance policy.

IV. When a potential policyholder is not interested in any insurance policy.

V. When a potential policyholder is not interested in the terms & conditions of an insurance policy terms than its benefits.

Select all that applies:

What are the Vulnerabilities in the insurance sectors?

I.The purchase and redemption of single premium insurance bonds

II.Sales-driven objectives

III. Lack of oversight /controls over intermediaries

IV. Lack of communication

V. Lack of staff members

Select more than one answer:

What does money launderers use to make the funds available to the criminal organization at the destination country in the local currency?

I.Money remitters

II.Bitcoins

III. Currency exchanges

IV. Paper bonds

V. Ethereum

In June 2016, Albert Fried & Co. (AFCO), a US registered broker-dealer, settled charges with the SEC for:

I. Helping the fraudulent representation of customer’s trades as required under federal securities laws.

II. Failing to provide terrorist financing as required under federal securities laws.

III. Failing to monitor customer’s relations as required under federal securities laws.

IV. Failing to monitor a customer’s trades for suspicious activity as required under federal securities laws.

V. Successfully monitoring a customer’s trades for suspicious activity as required under federal securities laws.

What is the duty of a Broker-dealer especially when the indicators are related to penny stock transactions?

I. To detect red flags and perform additional due diligence.

II. To detect yellow flags and perform no due diligence.

III. To detect white flags and perform additional negligence.

IV. To cooperate with staff employees & investigation officers.

V. To hide all information & delete all the transaction data.

In its 1997-1998 typologies report, FATF reported that:

I. Bitcoins were being used increasingly by launderers.

II. Gaming businesses and lotteries were being used increasingly by launderers.

III. Cryptocurrencies were being used increasingly by launderers.

IV. Horse-trading was being used increasingly by launderers.

V. Smuggling was being used increasingly by launderers.

Which statement best describes the Junkets?

I. Junket is the third stage of money laundering.

II. A junket is a form of the latest terrorist organization.

III. A junket is a form of casino-based tourism.

IV. A junket is a form of horse-racing gambling.

V. A junket is a form of travel insurance.

Which casino failed to maintain an effective AML program, failed to file SARs and CTRs, and maintain appropriate records?

I. Caesar’s Palace

II.Sparks Nugget

III.Mango Club

IV. Tinian Dynasty Hotel & Casino

V.Trump Taj Mahal

In 2013, The US Department of Justice concluded its money-laundering investigation into:

I. Las Vegas Sands Corp.

II. Hawaii Sands Corp.

III.Mexico Sands Corp.

IV. California Sand Corp.

V. American Sands Corp.

Online gambling provides an excellent method of money laundering for cybercriminals because :

I. Transactions are conducted principally through credit or debit cards.

II. Transactions are conducted principally through cryptocurrency.

III. Transactions are conducted principally through gaming.

IV. Transactions are conducted principally through currency exchange.

V. Transactions are conducted principally through social networking sites.

Online gaming is also regulated in Antigua and Barbuda under the:

I.Interactive Online Scheme

II. Interactive Gaming and Interactive Wagering

III.Anti-interactive Gaming

IV. Non-interactive wagering

V. Perfect Online wagering

In July 2015, FATF released a report titled:

I. Money Laundering / Terrorist Financing Risks and Vulnerabilities Associated With Silver

II. Money Laundering / Terrorist Financing Risks and Vulnerabilities Associated With Bitcoins

III. Money Laundering / Terrorist Financing Risks and Vulnerabilities Associated With Gold

IV. Money Laundering / Terrorist Financing Risks and Vulnerabilities Associated With GEMS

V. Money Laundering / Terrorist Financing Risks and Vulnerabilities Associated With Insurance