AMLCA Quiz 47

Select all that applies
Remote Deposit Capture (RDC) is a product offered by banks that allows customers:
I. To develop bilateral relations with the bank of deposit.
II. To scan and check an electronic image to the bank of deposit.
III. To transmit an electronic image to the bank of deposit.
IV. To transmit voice calls to the bank of deposit.
V. To make an annual report & send it to the bank of deposit.

Select all that applies
Select the statement that holds for RDC (Remote Deposit Capture)?
I. RDC decreases the cost to process checks for banks.
II. RDC increases the cost to process checks for banks.
III. RDC is part of a gradual transition away from paper-based transactions.
IV. RDC is an important part of paper-based transactions.
V. RDC allows costumers to build personal relations with the Bank Staff.

Which statement best describes a Correspondent Banking?
I. Correspondent banking is the provision of banking services by a single bank only.
II. Correspondent banking is the provision of insurance services by one bank to another bank.
III. Correspondent banking is the provision of banking services by one bank to another bank.
IV. Correspondent banking is the provision of large cash transactions by government officials.
V. Correspondent banking is the key feature of a money-laundering service.

RDC leads itself to potential abuse by money launderers because:
I. They need to go to the bank for bribing the Bank staff.
II. They no longer need to go to the bank and risk detection.
III. They always need to go to the bank for verification.
IV. They no longer need to go to the bank for bribing Bank staff.
V. They no longer need to go to the bank for withdrawal of large funds.

Select all that applies:
What services are obtained by Respondent Bank through correspondent relationships?
I. Insurance services
II. Check to clear
III. International wire transfers of funds
IV. Local residential services
V. Foreign exchange services

Select the most appropriate statement for correspondent banking relations?
I. Correspondent banking relationships create a situation in which a financial institution carries out trade transactions on behalf of owners of another institution.
II. Correspondent banking relationships create a situation in which a financial institution carries out financial transactions on behalf of customers of another institution.
III. Correspondent banking relationships create a situation in which a monetary institution carries out financial transactions on behalf of the owners of another institution.
IV. Correspondent banking relationships create a platform for a financial institution to carry out small transactions on behalf of clients of another country.
V. Correspondent banking does not create a platform for a financial institution to carry out small transactions on behalf of clients of another country.

Why can correspondent accounts pose a significant threat to financial institutions?
I. They process large volumes of transactions for their customers’ customers.
II. They don’t process large volumes of transactions for their customers’ customers.
III. They process a small volume of transactions for their customers’ customers.
IV. They don’t process large volumes of transactions for their customers’ customers.
V. They lack a proper management system.

Which statement best describes a practice known as nesting?
I. This means the respondent bank is responsible to verify the details of all the sub-respondent.
II. This means the correspondent bank is responsible for knowing the identities or business activity of all the sub-respondent.
III. This means the correspondent bank is removed from knowing the identities or business activity of the sub-respondents, or even the types of financial services provided.
IV. This means that no bank is held responsible for any fraudulent misrepresentation.
V. This means that action shall be taken against employees who are absent without an application.

What was the basic purpose of the credit union?
I. To provide basic financial services to the poor from the rich community.
II. To provide basic financial services to its members from the local community.
III. To provide necessities of life such as electricity & water.
IV. To provide basic insurance services to its members.
V. To provide loans for residential purposes.

What were the observations of FinCEN regarding the credit union?
I. It had respondent banking relationships with money services businesses (MSBs) in low-risk jurisdictions
II. It had no corresponding relationships with any money services businesses
III. It had correspondent banking relationships with money services businesses (MSBs) in high-risk jurisdictions
IV. It had correspondent banking relationships with intelligence agencies
V. It has respondent banking relationships with money launderers

In 2013, how much money did the credit union process in cash orders?
I. Approximately $20 million
II. Approximately 30 million
III. Approximately $55 million
IV. Approximately $5 million
V. Approximately $35 million

In 2013, how much money did the credit union process in RDC for its MSB clients?
I. $985 million
II. $900 million
III. $125 million
IV. $200 million
V. $500 million

Select all that applies
What were the key findings of FinCEN regarding credit unions in 2015?
I. These funds could have been linked to money laundering.
II. The activity was expected the business behavior of a large credit union.
III. The activity was not expected the business behavior of a small credit union.
IV. These funds could have been linked to supporting a terrorist organization.
V. These funds could not have been linked to any money laundering.

NCUA is the abbreviation for:
I. New Credit Union Association.
II. Ninth Credit Union Authority.
III. National Credit Union Association.
IV. National Cooperation Union Association.
V. Nasa Coordination Union Association.

In some correspondent relationships, the respondent bank’s customers are permitted:
I. To conduct their transactions in any currency.
II. To conduct their family’s business transactions.
III. To conduct their transactions.
IV. To reside in official buildings.
V. To get loans on easy installments.

How does PTAs differ from normal correspondent accounts?
I. In PTAs, local bank’s customers can directly control funds at the correspondent bank.
II. In PTAs, foreign bank’s customers can directly control funds at the correspondent bank.
III. In PTAs, customers have no control over funds at the correspondent bank.
IV. In PTAs, foreign bank’s customers are not allowed to get bank statements at the correspondent bank.
V. In PTAs, Bank Staff members can directly control funds at the correspondent bank.

Select all that applies
Select various types of sub-account holders that PTAs can have:
I. Commercial businesses
II. Money launderers
III. Exchange houses
IV. Individuals
V. Terrorist organizations

Select TWO elements of a PTA relationship that can threaten the correspondent bank’s money laundering defenses:
I. PTAs with small cash transactions on daily basis with the strong bank supervision
II. PTAs with local institutions licensed in stock exchange services with the strong bank supervision
III. PTA arrangement in which sub-account holders have no currency deposit & no withdrawal privileges
IV. PTA arrangements in which sub-account holders have currency deposit and withdrawal privileges
V. PTAs with foreign institutions licensed in offshore financial service centers with weak or nascent bank supervision

Lombard Bank, a bank licensed by the South Pacific island of Vanuatu, opened a payable-through account at:
I. Bank of Scotland
II. Lloyds TSB Bank
III. American Express Bank International
IV. Swiss Bank
V. HSBC

Which statement best describes a concentration account?
I. Foreign accounts established to facilitate the processing and settlement of multiple or individual customer transactions within the bank.
II. External accounts established to facilitate the processing and settlement of multiple or individual customer transactions within the bank.
III. Internal accounts established to facilitate the processing and settlement of multiple or individual customer transactions within the bank.
IV. Bank legal agreement established to facilitate the transactions of foreigners within the bank.
V. Bank legal agreement established to facilitate the transactions of traders within the bank.

Select all that applies
Concentration accounts are frequently used to facilitate transactions for:
I. Private banking
II. Government banking
III. Trust and custody accounts
IV. Funds transfers
V. Money laundering

Select all that applies
What procedures or policies shall Banks implement that use concentration accounts?
I. Capturing customer transactions in the customer’s account statements
II. Capturing dealers transactions in the employees’ account statements
III. Requiring dual signatures on general ledger tickets
IV. Requiring single signatures on general ledger tickets
V. Retaining appropriate transaction and customer identifying information

Private banking provides highly personalized and confidential products and services to:
I. Poor clients at fees that are often based on “assets under management”.
II. Wealthy clients at fees that are often based on “assets under management”.
III. Foreign clients at fees that are often based on a nominal charge.
IV. Politicians only at fees that are often based on “assets under management”.
V. Artists only at fees that are often based on “assets under management”.

Select all that applies
Select all the factors that may contribute to the vulnerabilities of private banking about money laundering:
I. Perceived high profitability
II. Perceived low profitability
III. Intense competition
IV. Powerful clientele
V. Low competition

In 1994, two private bankers were convicted for the Mexican drug cartel of Juan Garcia Abrego, Select the Bank that employed them:
I. Bank of Netherlands
II. Bank of England
III. American Express Bank
IV. Wells Fargo
V. JPMorgan Chase

In the United States, Riggs Bank maintained a close relationship with:
I. Nicolas Sarkozy
II. Ricardo Lagos
III. Michelle Bachelet
IV. Augusto Pinochet
V. Jacques Chirac

In May 2004, Riggs Bank, which was a well-respected bank founded in the 1800s, was fined $25 million for:
I. Violations of the Federal Duck Stamp Act.
II. Violations of the US Bank Secrecy Act.
III. Violations of the Smart Saving Act.
IV. Violations of the American Savings Promotion Act.
V. Violations of the US Bank Insurance Act.

Select all that applies
When Riggs was fined the largest criminal penalty, it voluntarily closed its:
I. Embassy Banking
II. International Private Banking Division
III. Local Private Banking Division
IV. Loan Services
V. External Banking

In offshore or international financial centers, private banking customers are often:
I. Residents
II. Non-residents
III. Politicians
IV. TV anchors
V. Doctors

PICs is the abbreviation for:
I. Perfect Investment Companies.
II. Public Investment Companies.
III. Private Investment Companies.
IV. Public Inc Companies.
V. Private Immediate Companies.