AMLCA Quiz 45

In 1997, the Basel Committee issued a basic reference for authorities worldwide, what was the name given to it?

I.Insurance intermediaries for Banking Supervision.

II.Audit & Supervision principles for the Banking sector.

III. Core Cash Payment Methodology for Banking.

IV. Core Principles for Effective Banking Supervision.

V. Two principles of Effective Banking Supervision.

Select all that applies

The core principles of the Basel Committee were prepared with the assistance of:

I. Afghanistan, US

II. Brazil, Chile

III. Mexico, Russia,

IV. Hongkong, Singapore

V. India

What was the objective of “Core Principles Methodology” developed in October 1999?

I. To facilitate corruption & bribery.

II. To facilitate insurance companies.

III. To facilitate loan services.

IV. To supervise the banking sector with new technology.

V. To facilitate implementation and assessment.

By whom & when was the first European Union Directive for Money Laundering adopted?

I. By the council of European Insurance Network in July 1995

II. By the government officials in June 1990

III.  By the Council of the European Communities in June 1991

IV.  By the Council of the United Nations in July 1991

V. By the secretariat of the FATF in June 1990

What was the ultimate goal of The First EU Directive for money laundering?

I. To enact strict actions for its members to prevent their domestic financial systems from being used for the terrorist organization.

II. To enact principles for its members to prevent their international financial systems from being used for terrorist financing.

III. To enact strict actions for its members to prevent their domestic financial systems from being used for drug trafficking.

IV. To enact legislation for its members to prevent their domestic financial systems from being used for money laundering.

V.  To enact strict rules for its members to prevent illegal immigration through its borders.

Select all that applies:

Which statement holds for European Union & European law?

I. The EU can adopt measures that have the force of law even without the approval of the national parliaments of the various member states.

II. The EU can adopt measures that have the force of law only with the approval of the national parliaments of the various member states.

III. European law prevails over national law in the case of directives.

IV. National law prevails over European law in the case of directives.

V. European Union is a silent spectator in the case of directives.

Select the most appropriate statement for the First Directive of 1991:

I. The First Directive of 1991 confined predicate offenses to innocent killings as defined in the 1988 Vienna Convention.

II. The First Directive of 1991 confined predicate offenses to illegal property holders as defined in the 1988 Vienna Convention.

III. The First Directive of 1991 confined predicate offenses to money laundering to drug trafficking as defined in the 1988 Vienna Convention.

IV. The First Directive of 1991 confined predicate offenses to frauds in personal relations as defined in the 1988 Vienna Convention.

V. The First Directive of 1991 confined predicate offenses to all corrupt politicians as defined in the 1988 Vienna Convention.

Which statement holds for a beneficial ownership Banks?

I. For beneficial ownership, banks may use identity card from the customer but should not rely solely on such identities.

II. For beneficial ownership, banks may use a written declaration from the customer but should not rely solely on such declarations.

III. For beneficial ownership, banks may use a verbal declaration from the customer & it should rely solely on such declarations.

IV.  For beneficial ownership, banks may use a contract from the customer & should use them for further pieces of evidence.

V.  For beneficial ownership, banks shall not use any contracts from the customer.

In December 2001, the EU agreed on a Second Directive that amended the first one to require:

I. Stricter terrorist financing controls across the continent.

II. Stricter money laundering controls across Hong Kong only.

III. Stricter money-laundering controls across the continent.

IV. No money laundering controls across the continent.

V. Partial terrorist financing control across the continent.

Select all that applies

Select the key features of the EU Second Directive:

I. It extended the scope of the first Directive beyond insurance-related crimes

II. It extended the scope of the First Directive beyond drug-related crimes

III. It extended the scope of the First Directive beyond traffic-related crimes

IV. It provided a more precise definition of money laundering

V. It clarified that knowledge of criminal conduct can be inferred from objective factual circumstances.

Select all that applies

In line with FATF’s anti-money laundering recommendations, the Third EU Directive extended the scope of the first and second directives by:

I. Arresting employees who report suspicions of money laundering

II.Protecting employees who report suspicions of money laundering

III.Detailing a risk-based approach to customer services

IV.Defining “money laundering” and “terrorist financing” as separate crimes

V. Detailing a risk-based approach to customer due diligence

What statement best describes an Egmont Group?

I.Formal intelligence group of senior government officials

II.Informal social networking group used for marketing

III.A formal networking group of financial intelligence units

IV.An informal networking group of financial intelligence units

V.An informal social networking group of insurance authorities

Select all that applies

What is the basic purpose of the World Bank and International Monetary Fund:

I. To make a perfect collaborating to fight against deadly disasters.

II. To review anti-terrorist financing laws and procedures of FATF member countries.

III. To review anti-money laundering laws and procedures of FATF member countries.

IV. These organizations work together and in conjunction with FATF to encourage countries to have adequate anti-money laundering laws.

V. These organizations work together and in conjunction with FATF to encourage countries to have adequate drug trafficking laws.

Select TWO important topics of the Egmont group:

I. Statement of Purpose (last updated 2004).

II. Best Practices for the Exchange of Information Between Financial Intelligence Units (2004).

III. Best Practices for the Exchange of Information Between Government Officials (2004).

IV. Best Formulas for the Exchange of data (2004).

V.  Statement of ideas & techniques (last updated 2004).

Select all that applies:

The scope of the Third Directive differs from the Second Directive in that:

I. It specifically includes the category of trust and company service providers

II. It specifically includes the category of the terrorist organization

III. It covers all dealers trading in goods who trade in cash over EUR 15,000

IV. The definition of financial institution includes certain insurance intermediaries

V. The definition of financial institution includes certain government officials

Select all that applies

The Third Money Laundering Directive applies to:

I.  Credit institutions

II. National Artists

III. Government institutions

IV. Tax advisors

V. Legal professionals

When did the EU Fourth Directive enter into effect?

I. June 26, 2015

II. July 20, 2015

III. June 22, 2016

IV. July 16, 2015

V. Janurary 26, 2014

Select all that applies

What were the changes made to the EU  Fourth Money Laundering Directive?

I. Tax crimes relating to direct and indirect taxes are excluded in the broad definition of ‘criminal activity’.

II. An explanation of “financial activity on an occasional or very limited basis” was included.

III.New definitions for correspondent relationship.

IV. Customer due diligence is to be applied for transfers of funds exceeding EUR 1,000.

V. Customer due diligence is to be applied for transfers of funds exceeding EUR 500.

Select all that applies

Select all the relevant legal documents of the EU legislation on AML and CFT:

I. Joint Action (1998) on money laundering

II. Cash Control Regulation (2005)

III. Banking Supervision Decision(2005)

IV. Framework Decision (2001)

V. Joint Action (1998) on drug trafficking

Which statement holds for FATF-style regional bodies:

I. There are nine FATF-style regional bodies (FSRBs) that have similar form and functions to those of FATF.

II. There are two FATF-style regional bodies (FSRBs) that have similar form and functions to those of FATF.

III. There are ten FATF-style regional bodies (FSRBs) that have different form and functions to those of FATF

IV. There are seven FATF-style regional bodies (FSRBs) that have similar form and functions to those of FATF.

V. There are five FATF-style regional bodies (FSRBs) that have the same form and different functions to those of FATF.

GABAC is an abbreviation for:

I. Task Force on Money Levelling in Central Asia.

II. Task Force on Money Laundering in Central Africa.

III. Total Force on Military Land in Central Asia.

IV. Task Force on Money Laundering in Central Asia.

V. Typical Force on Money Lasting in Central Africa.

The APG, an autonomous regional anti-money laundering body, was established in;

I. February 1992

II. January 1997

III. February 1999

IV.  January 1995

V.  February 1997

Select all that applies

What are the benefits of APG (Asia/Pacific group)?

I.  Provides a forum where personal relationships can be discussed

II. Coordinates and provides practical support

III. Encourages jurisdictions to implement AML/CFT initiative

IV. Coordinates and provides theoretical support

V. Provides a focus for cooperative AML/CFT efforts in the Asia/Pacific region

Which statement holds for APG mechanisms?

I. The APG uses similar mechanisms to those used by FATF to monitor and facilitate progress.

II. The APG uses different mechanisms to those used by FATF to monitor and facilitate progress.

III. The APG also uses similar mechanisms to those used by the UN to monitor and facilitate progress.

IV. The APG does not use any mechanisms at all to monitor and facilitate progress.

V. The APG  uses different mechanisms in terms of practical implementation than FATF to monitor and facilitate progress.

The APG has seen its membership grow from:

I. its original 23 founding members in 1997 to 46 members as of July 2015

II. its original 9 founding members in 1997 to 42 members as of July 2015

III. its original 13 founding members in 1997 to 41 members as of July 2015

IV.  its original 10 founding members in 1997 to 24 members as of July 2015

V. its original 14 founding members in 1997 to 49 members as of July 2015

Which statement holds for APG Secretariat?

I. The APG Secretariat is headquartered in Ottawa, Canada.

II. The APG Secretariat is headquartered in Washington DC, US.

III. The APG Secretariat is headquartered in Hauge, Paris.

IV. The APG Secretariat is headquartered in Sydney, Australia.

V. The APG Secretariat is headquartered in London, UK.

What does CFATF stand for?

I. Car Fixation Action Task Force.

II. Cash Fixation Action Typical Force.

III. Caribbean Financial Action Task Force.

IV. Camelin Fire Action Traditional Force.

V. Cargo Financial Action Transit Force.

Select all that applies

Select the most appropriate statement for Caribbean Basin:

I.  It has long been a convenient banking center for many international criminals, including drug dealers.

II. It is the world’s largest cocaine producer and exporter.

III. It is the world’s smallest cocaine producer region.

IV. It is liable for many natural disasters every year.

V. It has long been a convenient place for many international immigrants.

Select all that applies:

The main objective of the CFATF is to:

I.achieve effective implementation of and compliance with its recommendations to prevent and control innocent killings

II. achieve effective implementation of and compliance with its recommendations to prevent and control money laundering

III.  to combat the financing of terrorism

IV. to combat the deadly diseases globally

V. to support terrorist organizations financially

What is the purpose of establishing CFATF’s Secretariat:

I. As a mechanism to monitor and encourage progress to ensure full implementation of the Kingston Ministerial Declaration.

II. As a mechanism to monitor and encourage progress to ensure full implementation of the World Bank Policy.

III. As a mechanism to monitor and encourage progress to ensure full implementation of the IMF’s policy.

IV. As a mechanism to monitor and encourage progress to ensure full implementation of the FATF’s Declaration.

V. As a mechanism to monitor and encourage progress to ensure full implementation of the AML’s Declaration.