AMLCA Quiz 46

In 1989, what did the Group of Seven nations launched at an annual economic summit in Paris?

I. World Trade Services (WTS).

II. Anti-poverty Corporation (APC).

III. Universal Money Laundering Scheme (UMLS).

IV. International Monetary Fund (IMF).

V. The Financial Action Task Force (FATF).

The intergovernmental body is based at the Organization for Economic Cooperation and Development (OECD) in Paris, where it has its own:

I. General assembly

II. Secretariat

III. Parliament

IV. Embassy

V. Diplomats

Select all that applies:

What are the stated objectives of FATF:

I. Set standards for combatting money laundering.

II. To promote effective implementation of legal, regulatory and operational measures for combatting money laundering.

III. To promote democracy & diplomacy.

IV.  To set standards for terrorist financing and other related threats to the integrity of the international financial system.

V. To develop multilateral relations with other countries.

Select all that applies:

Identify the important focal tasks of FATF:

I. Developing new strategies for combatting drug trafficking

II. Implementing New World Order globally

III. Monitoring implementation of the FATF Recommendations among its members

IV. Spreading the AML message worldwide

V. Spreading the IBN message worldwide

For the 2013 Methodology, FATF defines effectiveness as:

I. The extent to which nothing is achievable.

II. The extent to which the defined outcomes are achieved.

III. The extent to which the defined outcomes are not achieved.

IV. The extent to which anything has a positive impact on money launderers.

V. The extent to which anything harms terrorist financing.

Select all that applies:

Identify the basic immediate outcomes on which  Effectiveness is evaluated:

I. Legal persons are misused for ML/TF and beneficial ownership information is available to the public.

II. Financial institutions do not apply preventative measures and don’t report suspicious transactions.

III. Financial intelligence information is used by authorities in money laundering.

IV. Proceeds of crime are confiscated.

V.  Terrorist financing offenses are investigated, criminally prosecuted, and sanctions imposed.

Since its creation in 1989, FATF has been working under:

I. Four-year mandates

II. Five-year mandates

III. Six-year mandates

IV. Seven-year mandates

V. Eight-year mandates

On what activities FATF has focused its work on:

I. Standard-setting.

II. Ensuring no compliance with the standards.

III. Ensuring effective compliance with the standards.

IV. Identifying money laundering and terrorist financing threats.

V. Identifying drug trafficking threats.

Select all that applies:

FATF’s 40 Recommendations provide a complete set of countermeasures against money laundering and terrorist financing, covering:

I. The identification of drug trafficking

II. The identification of risks and development of appropriate policies

III. The criminal justice system and law enforcement

IV. The financial system and it’s regulation

V. The anti-terrorist financing system

Select TWO  most important changes made to the FATF’s Recommendations in 2003:

I. Expanded coverage to include anti-terrorism financing activities.

II. Expanded coverage to include terrorist financing.

III. Restricted coverage to include terrorist financing.

IV. Adopted a clearer definition of money laundering predicate offenses.

V.  Excluded the precise definition of money laundering predicate offenses.

Which statement holds for Risk-based Approach according to the 2012 revision of the 40 Recommendations by FATF:

I. Financial institutions should use the risk-based approach to identify and mitigate the risks they face.

II. Financial institutions should not use the risk-based approach to identify and mitigate the risks they face.

III. Financial institutions should not use the risk-based approach to identify terrorist financing.

IV. The risk-based approach does not allow countries to allocate their limited resources in a targeted manner.

V. Financial institutions should use the risk-based approach to identify drug traffickers.

What do CDD measures stand for?

I.Cash Due Designation.

II. Client Due Diligence.

III. Customer Due Diligence.

IV. Cash Dual Diligence.

V. Customer Delight Desk.

Select all that applies:

Financial institutions should conduct CDD measures when they:

I. Establish business relations

II. Carry out an occasional transaction or a wire transfer above the specified threshold

III. There is no suspicion of money laundering

IV. Have a suspicion of drug trafficking

V. Have a suspicion of money laundering or terrorist financing

MVTS is an abbreviation for:

I. Money or Visit Transaction Services

II. Money or Value Transfer Services

III. Method of Value Transfer Services

IV. Means of Vast Transfer Services

V. Means of Value Transfer Services

Select all that applies:

Countries and financial institutions should assess the risks associated with which of the following statements :

I. Development of new products.

II. Business practices.

III. Delivery mechanisms and technology.

IV. Fraudulent practices.

V. Money laundering mechanisms.

What shall Financial institutions monitor for incomplete information?

I. Personal data

II.Bank transcations

III. Wires

IV. Terrorist organization

V. Personal relationships

Which statement holds for money laundering or terrorist financing?

I. Countries should take appropriate measures to prevent the misuse of personal relationships.

II. Countries should take appropriate measures to prevent the use of electronic means of transferring money.

III. Countries should take appropriate measures to prevent the misuse of legal persons for money laundering or terrorist financing.

IV. Countries should take appropriate measure to promote the financing of terrorist organizations.

V. Countries are not held responsible for money laundering or terrorist financing.

Select the correct composition of FATF:

I. It comprises 35 member jurisdictions and 2 regional organizations.

II.  It comprises 25 member jurisdictions and 12 regional organizations.

III.  It comprises 32 member jurisdictions and 2 regional organizations.

IV. It comprises 25 member jurisdictions and 3 regional organizations.

V. It comprises 30 member jurisdictions and 12 regional organizations.

Select all that applies:

Identify the member jurisdictions of FATF:

I.Afghanistan

II.Iran

III. Mexico

IV. Netherlands

V. Malaysia

Which statement holds for acquiring membership from FATF?

I. To become a member of FATF, a jurisdiction must first be invited to participate in the general assembly.

II. To become a member of FATF, a jurisdiction must first be invited to participate in NATO fundings.

III. To become a member of FATF, a jurisdiction must first be associated with communist countries.

IV. To become a member of FATF, a jurisdiction must first be invited to participate as an observer.

V. To become a member of FATF, a jurisdiction must first be associated with IMF.

Select all that applies

Identify quantitative indicators for FATF membership among them:

I. Size of gross domestic product (GDP).

II. Size of land.

III.Size of the banking sector.

IV. Size of insurance and securities sectors.

V. Death tolls.

Select all that applies

Select all the qualitative indicators for FATF membership among them:

I. Active participation in a FATF-Style Regional Body (FSRB).

II. International prominence in United Nations.

III. Regional prominence in AML/CFT efforts.

IV. Level of AML/CFT risks faced and efforts to combat those risks.

V. Regional prominence in Global Warming conferences.

Select all that applies

FATF has had a practice of “naming and shaming” countries that it determines to maintain:

I. Adequate money-laundering controls

II. Inadequate anti-money laundering controls

III. Not cooperating in the global AML/ CFT efforts

IV. Cooperating the global AML/CFT efforts

V. No cooperating the global UN efforts

On February 14, 2000, FATF published an initial report on;

I. Cooperative countries of NATO.

II. A haven for Terrorist Financing countries.

III. A haven for Money-laundering countries.

IV.Cooperative Countries and Territories.

V. Non-Cooperative Countries and Territories.

What does FATF’s Public Statement identifies?

I. Countries or jurisdictions with strategic deficiencies that are so serious that FATF calls on its members and non-members to apply counter-measures.

II. Countries or jurisdictions with strategic deficiencies that are not serious that FATF calls on its members and non-members to apply counter-measures.

III. Countries or jurisdictions with basic deficiencies like poverty shall adopt FATF rules & regulations.

IV. Countries or jurisdictions with partial deficiencies that are not serious that FATF calls on its members and non-members to apply counter-measures.

V. Countries or jurisdictions that are so perfect in their dealings that FATF calls on its members and non-members to apply counter-measures.

Which statement holds for The Basel Committee on Banking Supervision?

I. It was established in 1974 by the central bank governors of the G-10 countries, promotes sound supervisory standards worldwide.

II. It was established in 1973 by the central bank governors of the G-10 countries, promotes bilateral cooperation worldwide.

III. It was established in 1969 by the World bank governors that promote sound supervisory standards worldwide.

IV. It was established in 1965 by the central bank governors to anti-terrorism scheme worldwide.

V. It was established in 1974 by the IMF governors that promote sound supervisory standards worldwide.

The Basel Committee’s Secretariat is located at:

I. The Bank for Domestic Settlements in Basel, Switzerland.

II. The Bank for International Cooperation in Basel, Switzerland.

III. The Bank for International Settlements in Basel, Switzerland.

IV. The Bank for International Settlements in Hauge, Paris.

V. The Bank for International Dealings in Glasgow, UK.

Select the statement that holds for Banking supervisors:

I. Banking supervisors are generally not responsible for the criminal prosecution of money laundering in their countries.

II. Banking supervisors are always responsible for the criminal prosecution of money laundering in their countries.

III. Banking supervisors are mostly bribed for criminal prosecution of money laundering in their countries.

IV. Banking supervisors are partially responsible for the criminal prosecution of money laundering in their countries.

V. Banking supervisors are much vulnerable to the criminal prosecution of money laundering in their countries.

In 1988, the Basel Committee issued a Statement of Principles called;

I.Prevention of bribery in the banking sector

II.Prevention of Criminal Use of Bank accounts

III.Prevention of Criminal Use of the Banking System for Money Laundering

IV. Prevention of drug trafficking worldwide

V. Prevention of poverty & child abuse worldwide

Banking supervisors must determine that:

I.  Banks shall not have adequate policies, practice, and procedures in place.

II. Banks have adequate policies, practices, and procedures in place, including strict ‘know-your-customer’ rules.

III.  Banks have adequate policies, practices, and procedures in place, including strict personal relationships information.

IV.  Banks have adequate policies, practices, and procedures in place, including no strict rules.

V. Banking supervisors must determine that banks have all bank transaction details of their customers.