AMLCA Quiz 51

Question 1 of 30

What do the service between the treaty of Canada and the kingdom of Spain on mutual legal assistance cover?

Including criminal records.
Judicial records.
Location of persons and objects.
Identification, search, and seizure.

Question 2 of 30

What sort of procedures can be typically found in the process of mutual legal assistance?

Sending the request via the central authority of the requesting country.
The nature of the request.
The criminal charges in the requesting country.
Investigator asks the central authority to remove the evidence of the requesting country.

Question 3 of 30

What are the three basic functions of FIU?

Receive.
Analysis.
Dissemination.
Collect.

Question 4 of 30

Which of the following information related to FIU are true?

The FIU members of the Egmont group share the same core functions.
The European FIU and Egmont group differ in their FIU network system.
All FIU members exchange information seamlessly with instant speed.
All FIU works independently.

Question 5 of 30

What are the recommendations outline regarding FIU power?

They have the responsibility for ML and TF investigations.
Develop a pro-active parallel financial investigation when pursuing money laundering.
Uses of undercover operations, intercepting communications.
Surveillance without the need of legal court approvals.

Question 6 of 30

Which of the following statement related to the FIU communication method are true?

They often communicate via the basis of memoranda of understanding (MOU).
Obtaining intelligence that might lead to evidence.
Information of exchange should be possible on the basis of reciprocity, including spontaneous exchange.
The difference in the definition of the offense will be an obstacle to free exchange of information at the FIU level.

Question 7 of 30

What is the handling practice that is correct in the FIUs?

FIU communication can take place directly, without intermediaries.
Information should be exchanged between FIUs rapidly as possible with no excessive formal prerequisites.
Information can be shared instantly overriding the privacy and confidentiality of shared data.
Information can be shared without any formal prerequisites.

Question 8 of 30

When an FIU is being asked for information, what is the practices that should be followed?

FIU should compliance with the principles for information exchange as set by the Egmont group.
FIU should supply the information spontaneously as soon as possible as its relevance to the information identified.
The information should be exchanged in a secure way using Egmont secure web (ESW) where appropriate.
Strict controls and safeguards to ensure that information is well protected and is confidential and in an authorized manner.

Question 9 of 30

Which of the following is recommended by FATF to be considered when considering the risk?

Cash intensive businesses.
Complex ownership structure.
Companies with bearer shares.
Countries with significant levels of corruption.
All of the above

Question 10 of 30

Which of the following is correct when considering the performance of the CDD for an FI cross its operations?

Should consider it from a global perspective.
Should be reviewed individually in its entity level.
Should be reviewed at a functional level.
Should be considered in a country level.

Question 11 of 30

Under what situation should the identity of a customer be verified?

For any banking relationship.
For credit proposals.
For a serious banking relationship.
For a close transaction relationship.

Question 12 of 30

When tackling the black market peso exchange (BMPE), what are the red flags that can be identified?

The payment that is made in cash by a third party and no connection to the underlying transaction.
Wire transfers from third parties with no connection with the underlying transaction.
Payment made with checks, bank drafts or money orders not drawn on the account of the purchaser.
The payment that is transfer over EUR10k.

Question 13 of 30

What are the characteristics of a good know your employee program should be?

It should allow a good understanding of employees background.
Good understanding of conflicts of interest.
Understanding the susceptibility to money laundering.
Monitoring, dual control, and deterrents should be firmly in place.

Question 14 of 30

Which of the following will be considered and reviewed when conducting a bank transaction monitoring by independent audit?

Their policies procure and process.
The system methodology and analyzing method.
Appropriateness of the monitoring reports.
Comparison of the transaction monitoring typologies of the AML CFT risk assessment for reasonableness.

Question 15 of 30

When reviewing the dynamic risk of the customers, what should be considered?

The unusual activity, such as alerts, cases and suspicious STR filings.
Receipt of law enforcement inquiries, such as subpoenas.
Volumes of activity that is not expected.
The company structure of lawyers.

Question 16 of 30

When considering the categories of prohibited risk, what is the characteristic of it?

Should conduct enhanced due diligence.
They are PEP clients.
Correspondent banking clients.
Related to terrorism or prohibited transactions.

Question 17 of 30

Apart from policies and procedures, there can be more options that can enhance the internal controls, what are they?

Uses of management reports.
Uses of double signing or approval arrangement.
Enabling relationship manager the power to sign transactions approval.
Enabling a relationship manager to approve transactions.

Question 18 of 30

Offshore corporations and banks that are located in tax banking havens are generally considered to be high risk for?

Money laundering.
Terrorist financing.
BMPE.
Structuring.

Question 19 of 30

Each FI should assign an AMLO, what should the AMLO function includes?

Designing and constructing the AML content for staff training.
Designing and implementing the program.
Make Changes to AML policies.
Checking of all employees that are new entrants to the bank to avoid potential AML.

Question 20 of 30

While all employees should be responsible for AML compliance, who should be the ultimate responsibility for it?

The board of directors
The manager of the employees.
The AMLO.
The compliance officer.

Question 21 of 30

When conducting training for employees, what are the definition and meaning of response training?

Conducted when there is a change in software, systems, procedures or regulations.
Whenever the line manager think that fits.
Whenever the employee failed a review.
Biweekly.

Question 22 of 30

What are some of the gateways that can assist with the AML cooperation between countries?

Mutual legal assistance treaties.
FIUs.
Supervisory channels
Egmont group.

Question 23 of 30

What are the most suitable answer below for the rationale for an interview the employee ASAP when the incident happens?

To ensure the employee memories is freshest.
To ensure the employee has not yet resigned.
To ensure that the employee maintained a proper record.
To ensure that the employee has not left their respective countries.

Question 24 of 30

When an employee of an FI is being questioned or requested to provide certain information. What should be the correct handling method?

Should not provide the information directly and inform senior management or counsel.
Do not contest directly but through the FI.
Provide immediately and avoid tipping off.
Provide only when it is not violating privacy law.

Question 25 of 30

Among FATF 40 recommendations, which of the specific section and area that deals with the legal assistance treaties, extradition and confiscation of assets for the information exchange internationally?

36-40.
31-35.
15-20.
21-30.

Question 26 of 30

When conducting mutual legal assistance, which of the following are correct procedures and steps?

Sends a commission rogatory; letter rotator; or letter of the request via a central authority.
Local FIU agents seek the information from its country as requested by the central authority.
Local FIU agents seek the information from its country as requested by the other FIU agents.
Central authority sends the evidence to the requesting central authority.

Question 27 of 30

Which of the following statement is true regarding the handling of the information and the steps and procedures related to mutual legal assistance?

A local witness may be needed to attend the court hearings in the requesting country.
Evidence can be removed to the requesting country if the investigator has already sought permission from the central authority.
The requesting country will send the agents to the other country for the collection of information.
FIUs can exchange the information freely if there is a master legal opinion already in place between the central authority to ensure time is used most efficiently.

Question 28 of 30

When in a situation where the bank or the FI itself is under investigation by the government agency. What are the steps that the employee should follow and adhere to?

Information should not be provided via the employee directly to the government to the agency.
Information should be provided and produced by senior management or counsel.
Employees should be allowed for employee interviews.
An employee should never be allowed for an employee interview.

Question 29 of 30

When a bank or an FI received the summons or subpoena for presenting some documents. What should be the correct procedure of handling?

The bank may contest if there are sufficient grounds.
Under no situation, the bank should contest as this is the government law requirement by the central authority.
Summons and subpoena should be reviewed carefully.
They are required to keep the bank accounts in open as requested by the on-field agents front he FIU verbally.

Question 30 of 30

In a situation where there is an attorney-client privilege agreement. Which of the following situation should be regarded as correct handling?

Distribution of copies is strictly prohibited.
Copies are allowed but no writings on it are allowed.
Copies are allowed and writings of notes are also allowed but have to be collected within a period of time.
All copies should be maintained in a file separately.

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