AMLCA Quiz 49

If money laundering is prevalent, there is more likely to be:
I. Transparency
II. Social justice
III. Corruption
IV. Good management
V. Political instability

Select all that applies
If a country is a haven for money laundering & terrorist financing, it contains:
I. Little to no enforcement of the laws
II. Limited types of institutions and persons covered by money laundering laws and regulations
III. Effectiveness in monitoring compliance with money laundering
IV. Effectiveness in monitoring terrorist financing laws and regulations
V. Ease of freezing assets related to money laundering

Select all that applies
The penetration of organized crime groups in a jurisdiction is directly linked to:
I. Public sector corruption
II. No fraudulent representation
III. Serial killings
IV. School sector corruption
V. Private sector corruption

Select all that applies
What strategies a criminal might try so they can continue to run their criminal businesses?
I. Make a small cash payment to higher officials
II. Threatens lawyers or judges
III. Bribe government officials
IV. Bribe employees of financial or non-financial institutions
V. Make telephonic calls to serial killers

Select all that applies
A comprehensive AML/CFT framework helps to:
I. Promote criminal activities
II. Curb criminal activities
III. Discourages criminals from operating in a country
IV. Promotes bilateral relations
V. Encourages terrorism

Select the most accurate findings of US National Security Council report in 2001 about the Russian organizations?
I. Russian organizations were not taking advantage of Israel’s large Russian immigrant community.
II. Russian organizations were hiring money launderers for illegally producing drugs.
III. Russian organizations were taking advantage of Israel’s large Russian immigrant community to illegally produce compact discs or CDs.
IV. Russian organizations were not linked to any criminal activities.
V. Russian organizations were backed by terrorist financing.

What reputation did Israel gain amongst Russian gangsters?
I. being bad for money laundering
II. being good for money laundering
III. ideal place for business
IV. bad place for business
V. perfect place to reside

Select all that applies
How can money laundering proceeds be used to control whole industries or sectors of the economy of certain countries?
I. Investments in illegitimate companies.
II. By using back companies.
III. By using front companies.
IV. Investments in legitimate companies.
V. Investments in insurance companies.

Money laundering and terrorist financing can harm the soundness of a country’s:
I. Private sector
II. Public sector
III. Financial Sector
IV. Debt & loans sector
V. Employment sector

Select all that applies
Which Banks were associated with criminal activities that lead to several bank failures around the globe
I. Lloyds Bank
II. European Union Bank
III. First Internet Bank
IV. Bank of Scotland
V. Riggs Bank

Select all that applies
If the AML/CFT program is not established or maintained by financial institution’s charter, it can result in:
I. End of contracts
II. Civil money penalties
III. Loss of its reputation
IV. Loss of its charter
V. Loss of its potential clients

What is the immediate cause of a dampening effect on foreign direct investment?
I. When a country’s commercial and financial sectors are not perceived to be compromised and subject to the influence of organized crime.
II. When a country’s commercial and financial sectors are perceived to be compromised and subject to the influence of organized crime.
III. When a country’s public and private sectors are perceived to be compromised and subject to the influence of organized crime.
IV. When a country’s government sectors are perceived to be compromised and subject to the influence of organized terrorism.
V. When a country’s public & private sectors are perceived to be compromised & subject to the influence of organized frauds.

Which statement holds for money laundering?
I. Money laundering can directly affect foreign exchange rates as launderers reinvest funds where their schemes are less likely to be detected.
II. Money laundering can adversely affect currencies and interest rates as launderers reinvest funds where their schemes are less likely to be detected.
III. Money laundering can adversely affect companies as launderers reinvest funds where their schemes are less likely to be detected.
IV. Money laundering can adversely affect stock exchange shares as launderers invest funds where their schemes are less likely to be detected.
V. Money laundering can have a positive effect on interest rates as launderers reinvest funds where their schemes are less likely to be detected.

Money launderers are primarily interested in;
I. Hiding their bank accounts
II. Hiding the illegal origin of the funds
III. Disclosing their bank transactions
IV. Disclosing their personal relationships
V. Hiding their residency

Money launderers like to invest their money in such activities that are:
I. Appreciated by the public.
II. Economically beneficial to the country.
III. Not economically beneficial to the country.
IV. Appreciated by the government.
V. Beneficial for social welfare.

Select all that applies
Which statement holds for money laundering & government tax revenue?
I. Money laundering gives profit to honest taxpayers.
II. Money laundering indirectly harms honest taxpayers.
III. Money laundering generates government tax revenue.
IV. Money laundering diminishes government tax revenue.
V. Money laundering is extremely beneficial for taxpayers.

What lies at the center for economic difficulties in many countries?
I. A government surplus.
II. A revenue deficit.
III. An income deficit.
IV. A tax evasion.
V. Political instability.

What does the International Monetary Fund (IMF) aim for its member countries?
I. To reduce the tax collection capabilities for them.
II. To improve the tax collection capabilities for them.
III. To help in expanding their businesses.
IV. To get the status of MFN (most favorite nation) for them.
V. To reduce the nationalization process.

OECD is an abbreviation for:
I. Organization for Environmental causes & disasters.
II. Organization for Environmental Cooperation and Development.
III. Organization for Economic Cooperation and Development.
IV. Organization for Elite Class and Districts.
V. Organization for Economic Coordination and Demolition.

OECD has been instrumental in moving many jurisdictions towards:
I. Tax evasion
II. Corruption
III. Political crisis
IV. Tax transparency
V. Income tax

Select all that applies:
In the past, What were criminals able to purchase to hide their illicit proceeds and to further their criminal activities?
I. Ports & resorts
II. Casinos
III. State properties
IV. Airplanes
V. Drugs

Select all that applies
A reputation as a money laundering or terrorist financing haven can harm:
I. An individual
II. Multinational companies
III. Development of country
IV. Local businesses in a country
V. Economic growth in a country

Legitimate businesses located in money laundering havens suffer from:
I. Reduced access to hospitals due to gangsters.
II. Reduced access to markets due to extra scrutiny of ownership.
III. Reduced sports facilities.
IV. Advanced security.
V. Terrorist financing.

Select all that applies:
What actions can the United States, the United Nations, and other governing bodies take against countries to protect the financial system from money laundering?
I. Disqualify their membership from the UN
II. Start surgical strikes against them
III. Impose sanctions against foreign countries
IV. Take strict actions against drug traffickers & other security threats
V. Impose sanctions against terrorists or terrorist group

Select all that applies
What is the role of the Office of Foreign Assets Control (OFAC) of the US Department of the Treasury?
I. Enforces economic and trade sanctions.
II. Implement the New World Order.
III. Administers economic and trade sanctions.
IV. Protect female workers from harassment.
V. Administer statistics of taxpayers.

Select the statement that holds for Comprehensive Sanctions:
I. Comprehensive sanctions prohibit virtually all transactions with a poor country.
II. Comprehensive sanctions prohibit virtually all transactions with a specific country.
III. Comprehensive sanctions encourage virtually all transactions with a specific country.
IV. Comprehensive sanctions prohibit virtually all transactions with a peaceful country.
V. Comprehensive sanctions encourage virtually all transactions with a terrorist country.

Select all that applies:
Targeted sanctions prohibit transactions with:
I. Specified industries or entities.
II. Unspecified industries or entities.
III. Individuals listed on OFAC’s Specially Designated Nationals.
IV. Individuals listed on Blocked Parties List.
V. Individuals not listed on Blocked Parties List.

Select all that applies:
For whom, Money laundering is very beneficial for the expansion of their operations?
I. Politicians
II. Drug traffickers
III. Smugglers
IV. Teachers
V. Criminals

Select all that applies;
The adverse consequences of money laundering are:
I. Illegal & concentration risks
II. Reputational & operational risks
III. Legal & concentration risks
IV. Non-operational risks
V. Non-concentration risks

Select all that applies:
Select TWO adverse consequences of money laundering among them:
I. Provision of correspondent banking facilities
II. Termination of correspondent banking facilities
III. Investigation costs and fines
IV. The increased stock value of financial institutions
V. No investigations, costs & fines