Revision Quiz

Which of the following is NOT a stage in the ML process?

• Placement

• Layering

• Integration

• Certification

Terrorist financing primarily differs from money laundering because:

• It only involves legitimate funds

• It seeks to disguise the source of funds

• It funds illicit activities

• The source of funds can be both legal and illegal

Which of the following is a common method used in the placement stage of ML?

• Wire transfers

• Structuring (smurfing)

• Investment in real estate

• Use of offshore trusts

Which type of transaction would be MOST suspicious in terms of potential TF?

• Multiple small deposits into a business account

• Large cash withdrawals

• Frequent international wire transfers to high-risk jurisdictions

• Salary payments

ML affects the financial system by:

• Increasing transparency

• Reducing compliance costs

• Distorting economic data

• Improving international relations

Which of the following is an example of TF?

• Using a shell company to hide profits

• Donating to a fake charity that funds militant groups

• Structuring financial transactions to avoid tax

• Buying assets with criminal proceeds

Which is a potential red flag for ML?

• Regular account activity

• A long-standing customer opening multiple foreign currency accounts suddenly

• Timely loan repayments

• Declaring all income sources

Which of the following sectors is MOST vulnerable to ML?

• Agriculture

• Financial services

• Education

• Manufacturing

Which statement is TRUE about TF?

• It always involves large sums of money

• It never uses legitimate financial institutions

• It can involve small, difficult-to-trace amounts

• It is not a global issue

One of the main goals of AML laws is to:

• Protect bank profits

• Increase tax revenue

• Prevent criminals from disguising the origin of their funds

• Encourage cross-border banking