AMLCA Quiz 48

Select all that applies:
Reputational risk for a bank represents the potential that:
I. Borrowers might stop doing business with the bank because of a money-laundering scandal.
II. Terrorists might stop doing business with the bank because of a money-laundering scandal.
III. Might help others in doing business with the bank because of a money-laundering scandal.
IV. Depositors and investors might stop doing business with the bank because of a money-laundering scandal.
V. Criminals might start doing business with the bank because of a money-laundering scandal.

Select all that applies
Select the most appropriate result that is caused by the loss of high-quality borrowers in a bank:
I. Reduces profitable loans.
II. Increase profitable loans.
III. Increases the risk of the overall loan portfolio.
IV. Decreases the risk of the overall loan portfolio.
V. Increases the overall bank’s performance.

The potential for loss resulting from inadequate internal processes, personnel or systems or external events refers to:
I. Reputational risk
II. Legal risk
III. Operational risk
IV. Concentration risk
V. Illegal risk

Select TWO components of operational risk:
I. Increased revenue
II. Increased borrowing
III. Decreased borrowing
IV. Funding costs
V. Funding profits

Which statement best describes a Concentration Risk?
I. The potential for loss resulting from a sudden mishap or theft
II. The potential for loss resulting from an accident
III. The potential for profit resulting from too much credit or loan exposure to one borrower or group of borrowers
IV. The potential for loss resulting from too much credit or loan exposure to one borrower or group of borrowers
V. No profit, no loss but being in a neutral financial state

Select all that applies
Select the factors that are responsible for placing a bank at concentration risk:
I. All the knowledge about costumer’s relationship with others.
II. Lack of knowledge about the customer’s relationship to other borrowers.
III. Lack of knowledge who is behind the customer.
IV. Lack of knowledge about a particular customer.
V. All the knowledge about costumer’s relationships.

FinCEN is the abbreviation for:
I. Financial Criminals Estonia Network.
II. Fast Immediate Network & Crimes Enlightenment Network.
III. Financial Crimes Enforcement Network.
IV. Financial Corruption Envy Network.
V. Forceful Crimes Enforcement Network.

Select all that applies:
In 2014, the U.S.’ Financial Intelligence Unit (FIU) issued an advisory to financial institutions reminding them:
I. To develop a strong social network.
II. To maintain a strong culture of compliance.
III. To promote cultural activities.
IV. The entire staff is responsible for AML/CFT compliance.
V. Only Senior management is responsible for AML/CFT compliance.

Which statement holds for the U.S.’ Financial Intelligence Unit (FIU) advisory?
I. This advisory was not followed in 2015 by a memorandum on “Individual Accountability and Corporate Wrongdoing.
II. This advisory was followed in 2015 by a memorandum on “Individual Accountability and Corporate Wrongdoing.
III. This advisory was followed in 2016 by a memorandum on “Team Accountability and Corporate Wrongdoing.
IV. This advisory was followed in 2013 by a memorandum on “Group Accountability and Corporate Wrongdoing.
V. This advisory was rejected in 2014 by “Group Accountability and Corporate Wrongdoing.

What does The Yates Memo remind prosecutors?
I. That criminal and civil investigation into corporate misconduct should also focus on groups who perpetrated the wrongdoing.
II. That criminal and civil investigation into corporate misconduct should also focus on individuals who perpetrated the wrongdoing.
III. That civil investigation into behavior misconduct should also focus on group culprits who perpetrated the wrongdoing.
IV. That criminal investigation should not focus on individuals who perpetrated the wrongdoing.
V. That casual investigations into corporate misconduct should not focus on anything.

FCA is the abbreviation for:
I. Finance Cash Authority.
II. Financial Conduct Authority.
III. Fast Cash Authority.
IV. Family Compensation Association.
V. Finance Conduct Association.

FCA published final rules for the Senior Managers Regime which is designed:
I. To disclose group accountability report within one week.
II. To improve individual accountability within the money laundering sector.
III. To improve individual accountability within the banking sector.
IV. To hide group accountability report within the banking sector.
V. To improve the hiring procedures for Senior managers.

MLRO stands for:
I. Money Laundering Reporting Office.
II. Minor Loss Reporting Officer.
III. Major Loss Reporting Officer.
IV. Money Loss Regional Office.
V. Money Laundering Resistant Office.

The senior manager is personally accountable for any misconduct that falls:
I. Outside the institution’s AML/CFT regime.
II. Outside the institution’s RFT regime.
III. Within the institution’s FCA regime.
IV. Within the institution’s AML/CFT regime.
V. Within the banking sector.

Select all that applies:
The New York State Department of Financial Services (DFS) issued a Final Rule requiring regulated institutions:
I. To maintain the filtering programs.
II. To maintain Transaction Monitoring.
III. To ban Transactions misuse.
IV. To organize the financial workshops.
V. To assist the government in filtering programs.

Select all that applies
The final rule by DFS is reasonably designed to:
I. Report suspicious activity.
II. Disclose lawful transactions.
III. Prevent unlawful transactions.
IV. Monitor transactions after their execution for compliance with the Bank Secrecy Act (BSA).
V. Monitor bank transactions of terrorist organizations.

Select all that applies:
Who is obliged to make annual certifications to the DFS confirming that they have taken all steps necessary to comply with transaction monitoring and filtering program requirements?
I. Senior officers.
II. Junior officers.
III. regulated institutions’ boards of directors.
IV. regulated institutions’ boards of inspectors.
V. unregulated institutions’ boards of directors.

Select the most appropriate statement regarding Thomas Haider:
I. Thomas Haider served as the Junior Compliance Officer for Western Union, a money services business (MSB) specializing in money transfers.
II. Thomas Haider served as the Juinor Compliance Officer for Western Union, a money services business (MSB) specializing in money transfers.
III. Thomas Haider served as the Chief Compliance Officer for MoneyGram, a money services business (MSB) specializing in money transfers.
IV. Thomas Haider did not serve as the Compliance Officer for anyone.
V. Thomas Haider was the most wanted gangster in the last decade.

Select all that applies:
What were the findings of “FinCEN Assessment of Civil Penalty” regarding Mr. Haider?
I. Mr. Haider failed to conduct effective audits.
II. Mr. Haider did not fail to conduct effective audits.
III. Mr. Haider failed to implement an appropriate AML program.
IV. Mr. Haider was successful in implementing an appropriate AML program.
V. Mr. Haider failed to terminate known high-risk agents.

Select all that applies:
Which statement holds for Mr. Haider’s penalty?
I. He has not assessed a penalty.
II. He was removed from his employment at MoneyGram in 2008.
III. He has individually assessed a $1 million Civil Money Penalty in 2014.
IV. He was jailed for about 1 year.
V. He was sentenced to death in 2014.

Select all that applies:
Select the best examples of different commercial channels that are used for moving illicit money?
I. Financial intermediaries
II. Brokerage accounts loans
III. Wire and transfers
IV. Internet transactions
V. Simple accounts loan

Select TWO consequences that resulted from the implementation of AML obligations in the banking sector by many governments?
I. A shift in laundering activity into the non-bank financial sector has increased.
II. More competition in the banking sector.
III. Non-financial businesses and professions have risen.
IV. Non-financial businesses and professions have decreased to a great extent.
V. a shift in laundering activity into the banking financial sector has increased.

Select all that applies:
What is the purpose of FATF and FATF-style regional bodies for publishing periodic typology reports?
I. To challenge the mechanisms of money laundering in the court.
II. To monitor changes and better understand the underlying mechanisms of money laundering.
III. To monitor changes and better understand the underlying mechanisms of terrorist financing.
IV. To challenge the mechanisms of terrorist financing in the court.
V. To predict the future of money laundering.

Which statement best describes an electronic transfer of funds?
I. An electronic transfer of funds is any transfer of funds that is done individually.
II. An electronic transfer of funds is any transfer of funds that is initiated by money laundering.
III. An electronic transfer of funds is any transfer of funds that is initiated by electronic means.
IV. An electronic transfer of funds is not the transfer of funds for any means.
V. An electronic transfer of funds is the failure of the transfer of funds.

Select TWO examples of electronic means that are used for electronic transfer of funds:
I. Treadmills
II. Automated Clearing House (ACH) computer
III. Ultrasound machines
IV. Magnetic tapes
V. Memory cards

What is the fastest way of money transfer?
I. Illegal Transfer of Funds
II. Postal Transfer of Funds
III. Telegraphic Transfer of Funds
IV. Electronic Transfer of Funds
V. Banker Transfer of Funds

Money launderers use electronic transfers of funds:
I. In the first stage of the laundering process.
II. In the second stage of the laundering process.
III. In the third stage of the laundering process.
IV. In neither stage of the laundering process.
V. In all the stages of the laundering process.

What tactics money launderers use to avoid detection of their illegal money transfers?
I. Varying the amounts sent.
II. Keeping them relatively small.
III. Underreporting thresholds.
IV. Keeping them relatively large.
V. Disclosing the exact amount sent.

Select all that applies:
Select indicators of money laundering using electronic transfers of funds:
I. Small, incoming funds transfer that is received on behalf of a foreign client.
II. Large, incoming funds transfer that is received on behalf of a foreign client, with little or no explanation or apparent reason.
III. Funds activity that is unexplained, repetitive or shows unusual patterns.
IV. Funds activity that is explained, repetitive but shows clear patterns.
V. Funds transfers that are sent or received from the same person to or from different accounts.

RDC is an abbreviation for:
I. Rule Dominate & Capture
II. Remote Deposit Capture
III. Reverse Deposit Capture
IV. Regional Deposit Cash
V. Reverse Deploy Cooperation