AMLCA Quiz 44

Select more than one answer:

What are the functions performed by OFAC (Office of Foreign asset control)?

I. To widespread the narcotics traffickers & terrorists.

II. Administers and enforces economic and trade sanctions based on US foreign policy.

III. Enforces national security goals against targeted foreign countries.

IV. Enforces national security goals against targeted international narcotics traffickers.

V. To develop the character building of terrorists by counseling.

Which statement holds for OFAC?

I.OFAC acts under certain legislation to impose controls on government officials and to freeze foreign assets under US jurisdiction.

II.OFAC acts under certain legislation to impose controls on transactions and to freeze foreign assets under US jurisdiction.

III.OFAC acts under the United Nations to impose controls on global warming under US jurisdiction.

IV.OFAC acts under certain legislation to impose controls on child abuse under US jurisdiction.

V. OFAC acts under no legislation to impose controls on transactions and to freeze foreign assets under US jurisdiction.

The main purpose of OFAC sanction programs is to:

I. Prohibit transactions and require the blocking of assets of persons and organizations.

II. Apply sanctions against third world countries.

III. Apply sanctions against bank defaulters.

IV.  Prohibit interpersonal relations & sharing of their assets.

V. Highlight the issues faced by the banking sector due to money laundering.

Select more than one answer:

All US persons must comply with OFAC regulations, including:

I. All US citizens.

II. Non-US citizens.

III. Permanent resident aliens.

IV. Diplomats of developing countries.

V. Members of the UN.

Select more than one answer:

What are the special measures specified by the Treasury Department that are often to be followed by US financial institutions?

I. Identify and obtain information about customers permitted to use.

II. Close certain payable-through or correspondent accounts.

III. Keep records and/or file reports on personal relationships of staff.

IV. Keep records and/or file reports on certain financial transactions.

V.  Open certain payable-through or correspondent accounts.

Select more than one answer:

Identify all the measures that are important while addressing a due diligence program?

I. Applying risk-based procedures designed to detect and report suspected money laundering.

II.Determining whether enhanced due diligence is necessary

III.Determining whether the banking sector has clear terms of agreements

IV. Assessing the money laundering risk presented by the correspondent account

V.Assessing the money laundering risk presented by a respondent account

Select all that applies:

Due diligence procedures must be applied to a correspondent account established for a foreign bank operating under:

I.A license issued by politicians.

II. An offshore banking license.

III.A respondent banking license.

IV. A license issued by a foreign country designated as non-cooperative by an international organization.

V. A license issued by a foreign country designated as cooperative by an international organization.

Select all that applies

What are the three lines of defense in the bank’s AML efforts as described by Basel Committee?

I. The line of money laundering

II. The line of business

III. Compliance & internal control functions

IV. Compliance & external control functions

V. Internal audit

What is the line of business responsible for?

I. Creating, implementing and maintaining policies and procedures.

II. Amendments of historical policies.

III. Working on procedures that are best suited for money launders.

IV. Creating & implementing loan policies & procedures.

V. Implementing insurance policies worldwide.

Select more than one answer:

What are the duties of “The Audit Function”?

I. Organize & manage workshops monthly.

II. Evaluating the effectiveness of compliance oversight and quality controls.

III. Independently evaluating the risk management through periodic assessments.

IV. Reporting to the government officials of the parliament.

V.  Reporting to the audit committee of the board of directors.

Select all that applies

Banks CDD policies should address:

I. Customer and beneficial owner identification.

II. Verification and risk profiling.

III. Identifying terrorist organizations.

IV. Identifying corrupt politicians.

V. Highlighting the complaints of bank costumers.

In case CDD cannot be performed, or the customer identifies verified, the bank should:

I. Not open an account.

II. Open an account on an immediate basis.

III.  Report such activity as suspicious to appropriate authorities.

IV. Does not report anything to senior authorities.

V. Deal the matter on a personal basis.

The European Commission coined the term “comitology,” which means:

I. The EU system that oversees the implementation of acts proposed by the European Commission.

II. The EU system that oversees the manufacturing of the most demanding products worldwide.

III. The EU system that oversees the immigration laws proposed by the European Commission.

IV. The EU system that oversees the implementation of acts proposed by the United Nations.

V. The EU system that oversees the necessities of life proposed by UNICEF.

GAFILAT is an abbreviation for:

I. The Financial Action Task Force of Latin America

II. The Financial Action Task Force of the London Association

III. The Financial Action Task Force of Liberty Association

IV. The First Action Task Force of Latin Argentine

V. The First Aid Task Force of Latin America

Which statement holds for Eurasian Group (EAG)?

I. The Eurasian Group (EAG) was formed in October 2008 in Canada.

II. The Eurasian Group (EAG) was formed in October 2004 in Moscow.

III. The Eurasian Group (EAG) was formed in October 2002 in Hong Kong.

IV. The Eurasian Group (EAG) was formed in October 2015 in London.

V. The Eurasian Group (EAG) was formed in October 2006 in Sydney.

Select all that applies:

The EAG members include:

I. Belarus

II. China

III. Pakistan

IV. India

V. Kazakhstan

The Wolfsberg principles say that banks should have:

I.Verbal policies on the “identification of and follow-up on unusual or suspicious activities.

II.Old policies on the “identification of and follow-up on unusual or suspicious activities.

III. Written policies on the “identification of and follow-up on unusual or suspicious activities.

IV. No policies for reporting terrorist financings & money laundering.

V. A list of corrupt politicians to prevent them from taking part in elections.

Select more than one answer:

As of June 2016, the Wolfsberg Standards listed on the website were:

I. Wolfsberg CB Principles 2014

II.Wolfsberg Owners, 2005

III. Wolfsberg Group MIPS Paper, 2014

IV. Wolfsberg Money Transaction System, 2010

V.  Wolfsberg Private Banking Principles, May 2012

Select more than one answer among them:

The USA Patriot Act has its implications for:

I. US institutions that do business in the United States

II. Non-US institutions that do business in the United States

III. International Immigrants that do business in their native country

IV. Terrorist organizations that operate worldwide

V. Money launderers that operate in the United States

The term “shell bank” does not include a bank that is:

I. Located outside the United States.

II. A regulated affiliate of an existing corrupt bank.

III. A non-regulated affiliate of a terrorist organization.

IV. A regulated affiliate of a bank that maintains a physical presence.

V. A non-regulated affiliate of a bank.

Identify the first criminal money laundering law in the US:

I. The Money Laundering Stop Act of 1886

II. The First Criminal Control Act of 1880

III. The AML Control Act of 1992

IV. The Money Laundering Control Act of 1982

V. The Money Laundering Control Act of 1986

Select all that applies

SUAs include virtually every US crime that produces an economic advantage, including:

I.Legal gambling

II. Aircraft piracy

III. Wire fraud

IV. Personal relations fraud

V. Copyright infringement

Select more than one answer among them:

Identify all the FATF-style regional bodies that have similar form and functions to those of FATF:

I. AEO

II.EAG

III.GUE

IV.GABAC

V.GIABA

BNPP’s methods for processing sanctions-related payments to or through the US included:

I. Removing references to sanctioned parties.

II. Removing references to conventional parties.

III. Replacing sanctioned parties with BNPP’s name or a code word.

IV. Structuring the payments in a matter that did not identify the involvement of the sanctioned parties in the transactions.

V. Replacing sanctioned parties with FATF’s name or a code word.

Select more than one answer:

Select members of the Basel Committee on Bank Supervision:

I. National Bank of Belgium

II.Bank of Sweden

III. Bank of Canada

IV.  South African Reserve Bank

V. National Bank of Africa

Which statement holds for private banking:

I. Private banking accounts should “under no circumstances” be allowed to escape KYC policies.

II. Private banking accounts should “under all circumstances” be allowed to escape KYC policies.

III. Private banking accounts should be allowed to escape money laundering policies.

IV. Private banking accounts shall not exceed the specified number of accounts.

V. Private banking accounts are not a reliable source of banking transactions.

For covered private banking accounts, US institutions must take reasonable steps to:

I. Ascertain the identity of all nominal and beneficial owners of the accounts

II. Ascertain whether any such owner is a “senior foreign political figure”

III. Ascertain whether any such owner is a “junior local political figure”

IV.  Ascertain the source of the funds in the account and the purpose and expected use of the account

V. Ascertain no sources of funds in the account and the purpose and expected use of the account

Select all that applies

Which Statement best describes Financial Action Task Force on Money Laundering?

In September 1996, Turkey became the first FATF member exposed to:

I. The peer pressure policy

II. The money laundering policy

III. The adult pressure policy

IV. No pressure policy

V. Government pressure policy

In May 2004, FATF’s members extended the organization’s charter by a record:

I. Three years

II. Eight years

III. Four years

IV. Nine years

V. Ten years