AML Quiz for Managers

what is money laundering?( Three Choices)

• Concealment of illegal assets with prior knowledge

• Converting dirty money into clean money

• Acquisition , use and possession of illegal assets with knowledge

• Arrangements-assisting the act of money laundering

What is willful blindness?

• Deliberately ignoring a customer request

• Ignoring traffic signals

• ignoring red flags on customer transactions wilfully

• Ignoring colleagues in the office

In general, the three phases of money laundering are said

to be: Placement:

• Structuring and manipulation.

• Layering and integration.

• Layering and smurfing

• Integration and infiltration

Which international organizations issues guidelines about anti-money laundering and countering terrorist financing? Choose three

• FATF

• UNESCO

• Basel Committee for Banking Supervision(BCBS)

• Wolfsberg Commitee

In which stage of money laundering would you classify depositing small amounts of cash into several related accounts?

• Integration.

• Structuring.

• Placement

• Construction

The tactic in which individuals make multiple deposits in small quantities to avoid detection is called:

• Paralleling.

• Integration

• Investing.

• Structuring

Choose three which are unusual and may need to be reported as suspicious transactions.

• . A customer who deposits money of suspicious origins and refuses to answer questions from the financial institution’s staff.

• A customer who tries to move money that is suspected of being derived from criminal activity.

• A customer who owns a large supermarket and deposits large amounts of cash several times a day.

• A customer whose account is showing transaction activities which are beyond his known financial capability

. In anti-money laundering terminology a “red flag” is

• A warning sign used to bring attention to potentially suspicious, risky transactions or activities.

• A general banking term used once the balance is negative / overdue.

• The standard flag of countries not cooperative in fighting money laundering and terrorist financing.

• An indicator that a customer is listed on an economic sanctions list.

. A customer wants to establish a sizable relationship with a financial institution. The AML officer is not comfortable with the client’s explanation for the source of the funds, but the client manager is vouching for the client and is eager to open the relationship quickly. What should the AML officer do to validate the client’s sources of funds?

• Accept the client manager’s approval of the client

• Allow the account to be opened but be sure to monitor the account activity.

• . Perform a background investigation to determine whether the client’s source of funds is credible

• Decline the account

Which of these activities might require a suspicious activity report? ( choose 4)

• a customer cancels a transaction and requests to do a second transaction for less amount in order to avoid providing id.

• a customer requests an unusually high dollar transaction and cannot explain the reason for the transaction or the source of the cash

• a customer appears nervous and asks unusual questions about your record keeping

• A customer just arrived from a foreign country on a job visa wants to open an account

• customer tries to bribe a teller