FIN370 CHAPTER 1

The following are the activities of commercial bank, except :

• Paying or collecting of cheques

• Making advances to customers

• Hold and manage foreign exchange reserve

• Receiving deposits from depositor

Function of commercial bank :

• Mobilisation of finance through saving accounts

• Granting loans to business

• Implementing monetary policy

• Purchasing government securities

In Islamic bank, it follows the principles of _______ as guided under Islamic Law.

Any other business that the Bank Negara Malaysia (BNM) approves, including the dual banking system consisting of conventional and Islamic bank.

• True

• False

How do commercial banks primarily mobilise savings ?

• By selling insurance policies

• Through various deposit accounts

• By issuing credit cards

• Through offering only investment products

What are the correct order of the three stages of money laundering ?

• Integration, Placement, Layering

• Placement, Integration, Layering

• Placement, Layering, Integrating

• Layering, Placement, Integrating

In money laundring, which stage is primarily focused on breaking the audit trail by creating complex layers of financial transactions ?

• Placement

• Integration

• Conversion

• Layering

What is money laundering?

• The person who engage directly or indirectly in a transaction that involve proceeds of any unlawful activity.

• It is a legal procedure for banks to transfer large sums without reporting.

• It is a method used by governments to track tax revenue efficiently.

• It is the act of cleaning physical currency at special banking facilities to prevent damage.

What does AMLATFPUAA mean?

• Anti Money Laundering and Anti-Terrorism Financing and Proceeds of Unlawful Activities Act

• Authority on Monetary Lending for All Trade and Foreign Public Use Administration

• Act on Marketing, Loans, Advertising, Taxes and Funding for Promoting Unlicensed Assets Abroad

• It is a purely local regulation concerned only with regulating social media posts

Sources of funds for commercial bank

• Capital & Reserves

• Debentures and notes

• Amount borrowed from other financial institutions

• InInvestment activities