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1. How does the Financial Acton Task Force (FATF) communicate its findings regarding jurisdictions with strategic anti-money laundering / Counter Financing of Terrorism deficiencies?

2. A client who owns a swimming pool company requests to open 19 accounts at a bank, each with a debit card for its swimming pool technicians. When asked about the purpose of each account, the client explains that each technician needs a separate checking account to purchase pool chemicals.

Which available source could be used in the bank’s internal investigation on this client’s activities?

A. Client’s credit bureau report

B. Local law enforcement investigation report

C. Interview swimming pool technicians and chemical suppliers

D. Internet search showing how such business are typically operated

3. A bank maintains a relationship with a customer who owns a small bakery business.

Which customer action indicates potential money laundering?

4. A bank employee recently opened an account for a new restaurant. Daily cash deposits over a three-month period are close to $9, 500.

What are two red flags that indicate possible money laundering or terrorist financing? (Choose two.)

5. Anewly appointed senior money laundering reporting officer (MLRO) at a digital bank has been instructed to implement an effective AML transaction monitoring system.

What areimportant considerationsfor selecting and implementing the AML system? (Select Two.)

6. TheFinancial Action Task Force (FATF) routinely publishes a catalog of jurisdictions requiring enhanced monitoring, which is commonly called the:

7. The AML investigator is reviewing the transaction monitoring alerts and the customer's historical profile for the past two years. A review of the negative news search from a blog indicates that the customer was previously part of a terrorist group.

Which activities warrant further escalation? (Select Two.)

8. A new business opened an account at a bank. After a month of activity, the account is referred to AML Investigations for potential human trafficking activity.

Which red flags most likely triggered the referral? (Select Two.)

9. What does the Financial Action Task Force 40 Recommendations address on transparency of beneficial ownership?

10. Which action does the Financial Action Task Force call on member countries to take in the most serious cases when countries have significant strategic AML deficiencies?

11. Which Trust parties should be identified to determine the true nature of the Trust relationship according to Basel guidelines? (Choose three.)

12. Which action should an FIU consider taking when it has information that might be useful to another FIU?

13. How can a financial institution verify the nature and purpose of a business and its legitimacy?

14. What is the goal of the Egmont Group in providing a forum for Financial Intelligence Units (FIUs) around the world?

15. The United Nations Security Council (UNSC) is empowered to impose sanctions regimes against countries and terrorist organizations.

Which statements are true regarding sanctions imposed by the UNSC? (Select Two.)

16. The bank's Compliance Officer is tasked with designing standards based on Basel's KYC principles.

Which essential elements should be included in the program? (Choose two.)

17. Which action by a prospective customer during the account opening process requires further investigation?

18. A U.K. real estate agent has three foreign clients interested in purchasing an apartment building, valued at £30 million, in the outskirts of London as an investment property. The clients are not willing to have their names provided to the bank. The clients want to purchase to be made in the names of three private companies for privacy reasons. The plan is to wire the funds into an account held in the name of another private company at a bank in London.

Which red flag should stop the agent from discussing this potential purchase further?

19. What is the appropriate compliance control for identifying politically exposed persons (PEPs) according to the Basel Committee’s paper on Customer Due Diligence for Banks?

20. Which are social/economic consequences of money laundering? (Choose two.)

21. Why do organized crime groups often use front companies? (Choose two).

22. When the Financial Action Task Force (FATF) places a jurisdiction on the list of “jurisdictions under increased monitoring", also known as the "grey list", the jurisdiction:

23. Which of the following is the most likely reason for the Financial Action Task Force to remove a jurisdiction from the Non-Cooperative Countries and Territories list?

24. Law enforcement submitted a request to a bank for information regarding one of its customers.

How should the bank respond according to Financial Action Task Force Guidance?

25. Which three circumstances are indicators for defining a customer as required additional diligence according to the Wolfsberg Principles on Private Banking? Choose 3 answers

26. A real estate buyer purchases multiple high-value properties in cash through a series of transactions in a short period of time and without any clear economic justification.

Which of the following is the most likely money laundering risk associated with this behavior in the real estate sector?

27. Which are red flags indicating potential engagement of a bank employee in money laundering? (Select Two.)

28. a personal banking customer who simultaneously opens several accounts will most likely cause further inquiry in which of the following scenarios?

29. Which of the following are part of a risk-based approach? (Select Three.)

30. An auction house dealing in fine art and antiques sells a well-known painting at a price of $12 million to an agent bidding for a group of local investors. The same painting sold ten years prior at auction for $5 million. The auction house receives payment for the painting via wire transfer from an account maintained in an offshore jurisdiction by the investor group. No beneficial ownership information is available for the account.

What are the two money laundering red flags? (Choose two.)

31. What is a primary responsibility of a financial intelligence unit?

32. A bank teller receives a written request from a police officer to review a previous customer's account on a pre-populated form with the officer's official letterhead. The officer suspects the previous customer is engaging in smurfing.

Which action should the bank teller perform?

33. Which should be provided to the board of directors or designated specialized committee when preparing suspicious activity reports (SARs) ?

34. A bank’s transaction surveillance system triggers an alert for a deposit of 250.000 USO into a client's account. According to the bank's KYC information, the client works for a financial advisory firm, and earns approximately 100, 000 USD per year.

Which actions should be taken? (Select Three.)

File the suspicious transaction immediately to the financial intelligence unit.

35. A bank compliance officer has implemented enhanced monitoring rules that have identified some unusual activity that may be indicative of human trafficking.

Which red flag should prompt additional transactional review?

36. In order to protect investigative materials from disclosure when conducting an internal Investigation of any employee of a financial institution, legal counsel of that financial should________?

37. During the course of work on behalf of a client, a lawyer participated in the movement of money.

If the lawyer suspects an act of money laundering, which of the following should the lawyer do according to European Union Money Laundering Directives?

38. Whichpersons must always comply with all Office of Foreign Assets Control (OFAC) regulations? (Select Three.)

39. A key element required to ensure an anti-money laundering compliance program is effectively embedded into an institution's culture is

40. Which statements relate to the role of financial intelligence units (FIUs) in combatting financial crime on a national and international level? (Select Three.)

41. The recommended way lot a financial institution to respond to a request from a law enforcement agency is to:

42. A customer has held an account at a local credit institution for 10 years. The account has received deposits twice weekly for the same amount and has never shown signs of suspect behavior. Monitoring software indicated that in the past few months the account has received several large deposits that were not in line with the account history.

When asked, the customer states she recently sold a piece of property, which is supported with a

proof of sale.

Which of the following should the compliance officer do next?

43. According to the Basel Committee on Banking Supervision standards, which statements best describe sound practices in relation to customer due diligence (CDD) policies and procedures? (Choose three.)

44. A foreign bank's compliance officer receives a request for information from a US bank, alerting the foreign bank to the possibility that it may have transferred funds on behalf of an Office of Foreign Assets Control (OFAC>-sanctioned person, who holds an account with the foreign bank.

Which statements are true with respect to said funds and the information in relation to the transaction under scrutiny? (Select Two.)

A. If the funds are seized, then the foreign bank would be within its rights to dispute such seizure.

B. US authorities have no power (in terms of the USA PATRIOT Act) to sanction the foreign bank for transferring funds on behalf of an OFAC-sanctioned entity.

C. The USA PATRIOT Act authorizes the Secretary of the Treasury or the Attorney General to subpoena records from the foreign bank that maintains a correspondent account with a US bank,

D. If a US citizen were part of the foreign bank's Board deliberations where a decision was made to onboard the OFAC-sanctioned entity as a client, then they can be confronted with criminal charges.

E. US authorities are only permitted to seize the funds transferred by the foreign bank under OFAC sanctions if there is an equivalent sanctions regime of the UN which has been contravened.

45. In performing a risk analysis, which factor (s) should a financial institution review?

46. Client A is flagged for a high volume of outgoing transfers. Further investigation reveals Client A has a potentially key role in a network linked to human trafficking.

After filing a suspicious activity report, what step should the investigator take next?

47. Which of the following are key components of the Know Your Customer (KYC) process? (Select Two.)

48. Which of the following is an important factor to consider when setting up an anti-financial crimes (AFC) compliance program governance structure?

49. A bank located in Arizona is considering a loan application for a new client. The collateral for the loan is a property in Florida.

The loan will be in the name of a limited company (LLC) whose ownership is not disclosed to the bank. The LLC was established by a New York-based attorney.

The loan will be repaid by the LLC in monthly wire transfers of $9, 000 which is more than the required monthly payment.

Which aspect indicates potential for money laundering?

50. A compliance officer at a small community bank has been asked to review existing customer onboarding policies and procedures to ensure they adequately address anti-money laundering risks.

How should customer due diligence be implemented?

51. A precious metals dealer opens a new account with a bank.

Which requires a referral to AML investigations for further review?

52. Which is an objective of the Financial Action Task Force (FATF) -Style Regional Bodies (FSRBs) ?

53. Which is a key aspect of the first EU Directive on Money Laundering?

54. In establishing procedures for the review of suspicious transactions and filling of STRs, what thing should an institution focus on?

55. Which of the following laws or regulations can impact the application of AML/CFT programs and require financial institutions (r" Is) to balance multiple compliance requirements?

56. Which is often an indirect consequence of non-compliance with AML laws?

57. A relationship manager in a bank has had a private banking customer for 10 years. The customer has business accounts and investments and seeks advice on the creation of a company overseas. The relationship manager refers the customer to the commercial banking manager and vouches for the customer.

Which of the following risk factors is the most important?

58. What are three potential issues for foreign financial institutions maintaining correspondent accounts with U.S. banks under the Patriot Act? Choose 3 answers

59. Which of the followingscenarios warrants enhanced due diligence (EDD)? (Select Three.)

60. Which of the following are common indicators of possible money laundering within the securities industry? (Select Two.)

61. Which is a characteristic of the Financial Action Task Force (FATF) 40 recommendations?

62. Which three should real estate agents include in the criteria to assess their company’s potential money laundering and terrorist financing risks when implementing a reasonable risk-based approach?

63. A financial institution is reorganizing and the anti-money laundering officer is now required to report to the Sales Director.

Which of the following statements about this situation is most correct?

64. In relationship to life insurance business, the third European Directive states that Member States may allow the identity verification of the beneficiary under the policy after the business relationship has been established, but before which events?

65. What are two requirements with respect to supporting documentation that is used to identify potentially suspicious activity, according to Financial Action Task Force? (Choose two.)

66. AnAML compliance officerreceives anindependent audit reportwith a number offindings.

Anappropriate responseto thereportwould include:

67. A compliance officer was recently reviewing transactional data for an international charity and found

transactions that present a higher risk.

Which reason is cause for terminating the banking relationship?

68. Which three areas do FATF’s 40 recommendations cover? Choose 3 answers

69. What do Financial Action Task Force (FATF) -style regional bodies do for their members to help

combat money

laundering and terrorist financing?

70. What are the three basic functions of a national financial intelligence unit?

71. Which of the following is a key consideration for a global organization when managing AFC and sanctions compliance across multiple jurisdictions?

72. According to the Financial Action Task Force, as part of their risk assessment, which are important data and information that a Trust and Company Service Provider must understand when establishing and administering a trust? (Select Two.)

73. What is the most effective criterion for determining the beneficial ownership of funds?

74. AnAML/CFT unit often compiles information about customer activity and product usagethat might be of interest toother parts of the organization.

Before allowing the unit to communicate such information internally, the organization mustreview:

75. Private investment companies are potentially vulnerable to money laundering because:

76. Which are essential elements of a KYC program identified by the Basel Committee on Banking Supervision? (Select Two.)

77. Which activity is most likely to facilitate money laundering through on-line banking systems with inadequate controls?

78. An anti-money laundering consultant audits a bank's current anti-money laundering policies, procedures and controls. The bank serves high-income, high net-worth clients who include non-residents and offshore businesses. During a review of the custom list, the anti-money laundering consultant determines that he and the bank have mutual clients. The bank's written anti-money laundering program includes a process for the bank to establish the identity of the person with whom they conduct business, but does not address monitoring of customer account activity.

The consultant should recommend the bank:

79. A customer frequently deposits large amounts of cash into an online gambling account and requests withdrawals shortly after with minimal gambling activity.

What is the most likely money laundering risk associated with this behavior in the gambling and gaming industry?

80. Upon filing a suspicious transaction report, which of the following elements should be the highest anti-money laundering priority in making the decision to keep the account open?

81. A startup virtual currency exchange has registered as a money services business and will commence operations in six months. The company will provide digital wallets to customers to hold their virtual currency after purchase. Customers will have the option to conduct purchases of the virtual currency and transfer the currency to and from the digital wallet. The startup must develop an anti-money laundering compliance program prior to launch.

Which two anti-money laundering responsibilities should be considered before business launch? (Choose two.)

82. Whichpractices are crucialfor ensuring that anorganization effectively limits the collection and use of personal datawhen performingAML-related controls?

83. A non-US bank is implementing a sanctions compliance program.

Which extraterritorial reach of Office of Foreign Assets Control (OFAC) regulations would matter the most to the foreign bank?

84. Which statement identifies one of the duties of a government Financial Intelligence Unit?

85. A large financial institution (Fl) is considering expanding business to an area of the world with weak AML laws. The risk-based assessment indicates that the location will increase the Fl's risk appetite beyond the stated acceptable amount.

Which risk factors should be used to identify the priority of the Fl?

A. Geographic risks

B. Unknown third-party risks

C. Cash-intensive businesses risks

D. Anonymous transactions risks

86. Which constitute red flags in connection with a company involved in illegal logging? (Select Three.)

87. A retail bank prepares a yearly AML risk assessment.

Which inherent risk factor is likely the most relevant?

88. Money laundering can cause which consequences for a financial institution? (Select Two.)

89. Cryptocurrency-related technologies that can be exploited by money launderers include: (Select Two.)

90. What is therelationship between the EU Anti-Money Laundering Directives (AMLDs) and local AML regulationsin European Union (EU) member states? (Select Two.)

91. According to PinCEN. when a financial institution (PI) identities a suspicious activity that necessitates suspicious activity report (SAR) filing, the SAR supporting documentation should (Select Two.)

92. An anti-money laundering analyst is reviewing a new customer list to confirm potentially high risk

customers have been identified and subject to enhanced due diligence.

Which new customer warrants enhanced due diligence?

93. Which scenario indicatespotential money laundering activity by a lawyer?

94. When providing reporting of STRs to the board, which of the following should be provided?

95. A government has instituted a new anti-money laundering laws which require all financial institutions to obtain certain information from its customers.

Which step should an institution located in this jurisdiction take to ensure compliance?

96. Which of the following is the main reason Internet gambling is an ideal web-based money laundering method?

97. An organization is developing a comprehensive anti-money laundering (AML) framework.

Which of the following statements best describes the relationship between AML policies and procedures?

98. From aninternational standards perspective, both theEU and FATFconsiderdata sharinga crucial component of effectiveanti-money laundering measuresbecause data sharing:

99. A financial institution has expanded its scope of services so that it is attracting the business of politically exposed persons (PEPs) who had previously never been part of the customer base.

Which two courses of action should the compliance officer include in the institution’s procedures for considering PEPs as customers? (Choose two.)

100. The most effective tool used to detect structured transactions is

101. What should the compliance officer do?

102. Which of the following employee behaviors would not trigger an AML red flag?

103. Which statement about U.S. Specified Unlawful Activities (SUA) is true?

104. The recently appointed senior money laundering reporting officer (MLRO) at a newly opened small digital bank has been instructed by the group chief compliance officer to implement an effective AML transaction monitoring system that can identify unusual and suspicious transactions.

What are important considerations for the project to select and implement the AML transaction monitoring system at the digital bank? (Select Two.)

105. An anti-money laundering specialist has been asked to create internal anti-money laundering policies, procedures and controls for a recently chartered offshore financial institution.

Which three should be included? Choose 3 answers

106. According to the Financial Action Task Force 40 Recommendations, Designated Non-Financial Businesses and Professions include

107. Country A’s anti-corruption authorityhas been investigating themovement of potential proceeds of bribery and corruption to Country Band is now preparing to take the case to a local court.

Which method of obtaining the requiredevidence to prosecute the casewould bemost effective?

108. What is the term for trading through multiple accounts, where an individual generates offsetting profits and losses and transfers of positions through accounts that do not appear to be commonly controlled?

109. An AML compliance officer for a large bank has recently received an internal audit report on the private banking unit. The report revealed that the unit staff were not following risk-based due diligence procedures, so that the unit was not operating effectively.

Which immediate actions should the AML compliance officer consider to address these findings? (Select Two.)

Management Should implement a quality assurance program in the private banking unit

110. In which two ways do Financial Action Task Force-style regional bodies influence anti-money laundering and terrorist financing standards within their respective regions? (Choose two.)

111. Which of thebelow statementsare supported by theFinancial Action Task Force (FATF) 40 Recommendationsadopted in 2012? (Select Two.)

112. In order for a terrorist organization to move funds from Cyprus to England through trade-based money laundering, which technique would be used?

113. An AML training program should include which requirement?

114. An oil exploration company based in France does business with oil refineries in Iran, which is subject to comprehensive Office of Foreign Assets Control (OFAC) sanctions.

What type of OFAC sanctions should be imposed against the French company?

115. An organization uses an automated surveillance system that generates a very large volume of anti-money laundering alerts. The monthly volume of alerts has increased over the last year causing the compliance staff to fall significantly behind reviewing the alerts. As a result, the system settings are under review to determine if they are appropriate.

Which action should be included in the evaluation of system settings?

116. The compliance officer at a casino in Taiwan discovers that the casino received multiple cash deposits from a customer just below the Large-Amount Transaction Report (LTR) limit on consecutive days. The customer used three different betting accounts.

What is the appropriate next step?

117. What are three factors a financial institution should examine with regard to a new customer who is opening up a new account? Choose 3 answers

118. According to the USA PATRIOT Act, under which condition would US financial institutions (Fls) maintain correspondent accounts for foreign shell banks?

119. Which factor should a financial institution (FI) consider prior to sharing customer records within the same jurisdiction?

120. A client is a wholesale auto business that operates as a used car lot. The client regularly ships vehicles internationally. In a four-month period, the client received wires totaling $ 1, 250, 000 from a dealer in Benin in West Africa. All wires originated from Benin and were in increments of $50, 000.

Account debits made to the account were payable to various transport companies. All incoming checks

reference various vehicles purchased. Dock shipping receipts produced by the client to support account

activity identify the vehicles but cannot easily be tied to the wires receives.

What is the suspicious behavior?

121. What are two sources for maintaining up-to-date sanctions information? (Choose two.)

122. An international bank is headquartered in Madrid, Spain, with an office in New York City (NYC), US. The Madrid office is investigating a transaction originating from a customer of the NYC office and inquires whether the NYC office can share any relevant further information on the individual. Upon further research, the NYC office finds that they have filed a Suspicious Activity Report (SAR) on the individual in the previous year.

Which factors need to be considered before sharing the requested information? (Select Two.)

123. Which actions are involved when a prosecutor instructs a bank to freeze the assets and bank accounts held by one of its clients? (Choose three.)

124. A high-volume dealer of precious metals and stones in a high-risk jurisdiction is approached by a new customer interested in selling gold worth $200, 000. The customer was referred by a longtime family friend of the dealer and provides no indication of background or business purpose for the sale. The dealer agrees to make the purchase based solely on the reference.

What is the money laundering red flag?

125. Which two aspects of precious metals pose the highest risk of money laundering? (Choose two.)

126. A bank located in New York has identified suspicious transactions at a correspondent bank in China. For one of the international customers, the correspondent bank is not following agreed upon protocols.

Which factor indicates that the bank should terminate the relationship?

127. FATF recommends the incorporation of some measures in customer due diligence (CDD) programs including:

128. A student contacts a real estate broker to view a home but cancels last minute due to illness. The student wants to quickly buy the 800, 000 USD home, which is overvalued, despite the broker’s objections to the asking price.

Which real estate red flags should the broker identify? (Select Three.)

129. A bank has opened a new account for a well-known attorney to manage client funds. During the first six months, bank staff observe the account receives multiple deposits via wire transfer. They also observe that the attorney withdraws cash, makes payments to various people, and transfers funds to the law firm’s account online.

What is considered a red flag for potential money laundering in this situation?

130. A junior account manager within an international private bank in Country A was asked by one of his valued customers, who has held an account for several years in the institution, about depositing a large sum of cash into her account. The junior account manager informed his customer that his bank does not accept cash. The junior account manager later reviewed a customer activity report and noticed a number of smaller dollar wires from banks in neighboring Country B, which has lax currency controls, that totaled about as much as the customer intended to deposit.

What should the junior account manager do?

131. Which method is indicative of potential money laundering and terrorist financing activity?

132. A compliance officer of a financial institution is reviewing a payment for sanctions compliance between two parties in Europe and Asia. The payment is in Euros and involves the provision of services to a company located in a jurisdiction subject to Office of Foreign Assets Control secondary sanctions.

Which factor is most important in determining the compliance officer's response?

133. A client has retained a lawyer to create a financial holding company. The lawyer resides in Europe. The client provides all requested documentation to the lawyer. However, the lawyer becomes suspicious that the customer is engaged in criminal activity and intends to use the financial holding company for money laundering purposes.

Which of the following should an anti-money laundering specialist recommend according to the European Union Money Laundering Directives?

134. What does the Egmont Group’s support for its members include?

135. What are two requirements for monitoring and reporting suspicious activity for correspondent banking

according to the Wolfsberg Principles? (Choose two.)

136. When a government imposeseconomic sanctionson a target, the purpose is to:

137. The obligation to freeze funds involved in suspicious transactions.

138. A non-U.S. bank asks its U.S. correspondent whether there is risk of having funds seized in their correspondent account if a customer is involved in a predicate offense. The correspondent bank's reply should be,

139. A key factor in the independence of an AML audit is that the auditor should.

140. Potential indicators of money laundering associated with Trust and Company Service Providers include: (Select Two.)

141. Which economic and social factors could create a dependency on illicit activities and money laundering? (Select Two.)

142. While conducting a review of a medium-risk customer, an analyst noted that a newly added authorized signatory is a foreign politically exposed person (PEP).

Which is the appropriate next step for the analyst to take?

143. What does the Financial Action Task Force (FATF) urge its members and all other jurisdictions to do when a jurisdiction is identified as having lax anti-money laundering / counter financing of terrorism controls?

144. When an institution receives a document request from law enforcement with regard to an STR that the institution has filed, what should institution do?

145. A bank sells reloadable open-loop prepaid cards to both customers and non-customers.

What is a red flag associated with these cards that may indicate money laundering?

146. A legal instrument which is executed between two nations and governs cross-border information sharing Is known as a.

147. What is a key risk associated with Correspondent Accounts according to the Basel Customer Due Diligence paper?

148. When making an independent determination on whether to close an account based on an internal Investigation, a financial institution (F1) should consider. (Select Five.)

149. Which elements can trigger a review of the existing relationship during the opening of a new account? (Select Two.)

150. According to the Basel Committee principles, which actions would make a customer identification program at a bank more robust? (Select Two.)

151. Which is most relevant when examining transactions suspected of being associated with money laundering via real estate?

152. Which situation is the highest risk for money laundering and terrorist financing activity?

153. What is a major economic consequence of money laundering through the use of front companies?

154. Which of the following aremoney laundering red flagswhen reviewingbusiness operationsof amoney services business (MSB)? (Select Two.)

155. Which product type is subject to US extra-jurisdictional reach over non-US banks and non-US persons under the USA PATRIOT Act?

156. The law enforcement agency (LEA) of a foreign jurisdiction contacts a financial institution (Fl) regarding one of the Fl's clients. The LEA advises that the client is currently wanted for prosecution as a result of a series of human trafficking charges.

What should the Fl do? (Select Two.)

A. Review the client's activity, determine if suspicious activity exists, and report accordingly.

B. Advise the LEA that the government needs to be contacted for extradition.

C. Comply immediately with the foreign jurisdiction and turn over all client information.

D. Inform local LEA and regulator of the request for awareness.

E. Close the clients accounts immediately to avoid any undue risk.

157. Historically, a tour guide has made monthly cash deposits averaging $10, 000. Over the past three months, the monthly deposits have averaged $100, 000. When the financial institution QUESTIO N NO: s the increased deposits, the tour guide explains that there have been numerous conventions in town so business has increased substantially.

Which further action (s) should the financial institution take?

158. According to the Financial Action Task Force's (FATF's) "Guidance for a Risk-Based Approach Life Insurance Sector, " which of the following are money laundering red flags relating to the involvement of a third party in a life insurance product? (Select Two.)

159. AFinancial Intelligence Unit (FIU) in a countryhas received a SARinvolving significantsuspicious fund transfers, not only within its jurisdiction but also in aforeign country. Furtherinformation is requiredfrom the foreign country to determine whether the matter needs to be referred for prosecution locally.

Which of the following statements istruein this scenario?

160. Cybersecurity risk can result in identity theft by:

161. Which of the following controls is typically implemented at customer onboarding to mitigate the risk of onboarding high-risk customers?

162. Which activities are part of adverse media screening for negative news and reputational risks? (Select Three.)

163. According to the Basel Committee on Banking Supervision, banks should deal with high-risk customers by:

164. A potential client calls a broker-dealer wishing to purchase securities. The client does not appear to be concerned with any fees associated with the account or price of the securities. Further information provided by the potential client indicates the individual may have relatives working for a company in which the potential client wants to invest.

Which type of activity is the potential client attempting to commit?

165. Pursuant to the Third European Union Money Laundering Directive, how long after being out of prominent office should a person NOT be considered to be a Politically Exposed Person (PEP) ?

166. A legal instrument that isexecuted between two nationsand governscross-border information sharingis known as a:

167. Which are red-flag indicators of possible money laundering through online gambling? (Choose two.)

168. Who meets the standard to perform the AML audit? (Select Two.)

169. Aninternational bank is investigating a payment requested by a correspondent banking partner. The payment originated from a corporation located in Hong Kong, and the final beneficiary is an individual in New York. The transaction triggered an alert in the bank’s automated transaction monitoring system.

Which steps should the bank take first to address the alert? (Select Three.)

170. What is the primary purpose of anti-bribery and corruption regulations?

171. Which is an indicator that there is an attempt to conceal a company's true beneficial ownership?

172. Which statement is the most accurate in describing who must comply with Office of Foreign Assets Control (OFAC) sanctions?

173. What three attributes do havens for money laundering and terrorist financing typically have? Choose 3 answers

174. Financial institutions (FIs) perform AML risk assessments to ensure:

175. Which of the following attributes would enhance an AML program's effectiveness?

176. Under the USA PATRIOT Act, in which scenario would the US not have jurisdiction?

177. What are theroles of a government Financial Intelligence Unit (FIU)? (Select Three.)

178. To ensure the independence of an audit for an AML program those involved in the audit would best be described as being:

179. Which action does the Financial Action Task Force (FATF) recommend be taken against jurisdictions that have strategic deficiencies?

180. Which of the following poses the greatest money laundering risk for a financial institution offering on-line services to customers?

181. Ateam overseeing the governance and effectiveness of a bank’s transaction monitoring approachshould implement which strategies? (Select Two.)

182. Which three methods are commonly used by an accountant to launder money? (Choose three.)

183. Which approach ensures the successful implementation of a transaction monitoring system?

184. Which trading pattern may be indicative of money laundering in capital markets?

185. What does designing a country as being of “prime money laundering concern” allow the U.S. government to do?

186. Why is the Mutual Legal Assistance Treaty (MLAT) a gateway for international cooperation?

187. An analyst reviewing trade finance transactions notices an increase in price of 25% over 12 months for commodities with the same specification and quantity.

Which action should the analyst take?

188. The Wolfsberg Anti-Money Laundering Principles for Private Banking require new clients to be approved by whom?

189. What types of things should an institution incorporate in it AML policies and procedures? Choose 3 answers

190. When using virtual assets such as Bitcoin to finance terrorism, which tactic may be used to ensure that the virtual assets are not easily seized by law enforcement?

191. Which of the following customers require the most enhanced due diligence?

192. How should a compliance program respond to an AML audit finding?

193. A compliance officer provides an overview of the bank’s anti-money laundering program to a group of new tellers during employee orientation.

Which training element should be delivered to this audience?

194. The branch manager notices that a number of customers come in weekly and always use the same teller to process their deposits. The manager notices that the customers and the teller, who are from the same ethnic group, are speaking in a foreign language and every once in a while the customers from local ethnic restaurants will bring the teller lunch. The commercial customers that visit the teller generally deposit the same amount of cash each time they come in.

How should the branch manager respond to this activity?

195. Which statements regarding the USA PATRIOT ACT best describe key aspects that have extraterritorial reach? (Choose three.)

196. Which statement about a multinational institution’s ability to fully investigate unusual activity in all its foreign operations is correct?

197. Which transaction monitoring processes would alert a bank for red flag activity?

198. A bank is preparing for a regulatory exam after a previous regulatory exam identified weaknesses in the bank's AML program. Since the last exam, the bank has improved the written AML program, hired an experienced AML compliance officer, and has taken actions to demonstrate a strong culture of compliance. The bank is now focused on getting through their transaction monitoring case backlog and completing enhancements to its sanctions screening program.

Which of the following are correct? (Select Two.)

199. Which is an example of structuring with regards to money laundering?

200. What should countries do to help prevent non-profit organizations from being abused for the financing of terrorism according to the Financial Action Task Force 40 Recommendations?

201. Which is the most severe consequence for a financial institution if the regulator finds it is in breach of AML regulatory obligations?

202. Which risks inherent to real estate sector carry the highest AML/CFT risk? (Select Two.)

203. According to the Financial Action Task Force (FATF) Recommendation 22. when involved in customer transactions that include the buying and selling of real estate, real estate professionals are required to apply which customer due diligence (CDD) measures? (Select Two.)

204. Money laundering red flags associated with money service businesses include: (Select Two.)

205. Which action should a financial institution take when it receives a grand-jury subpoena regarding a customer?

206. Based on studies executed by the Organization for Economic Cooperation and Development (OECD), which occupations are particularly vulnerable to the use of false identities and identity theft?

207. Which product is considered to be of highest money laundering risk?

208. Three individuals enter a casino and use cash to purchase chips worth 20, 000 USD. The trio uses 200 USD in chips to play games and then combine their funds to request a casino cheque.

What is the potential red flag that alludes to money laundering?

209. Which two individuals are ordinarily beneficial owners of a private banking account according to the Wolfsberg Anti-Money Laundering Principles for Private Banking? (Choose two.)

210. Which is a key role of FATF-Style Regional Bodies (FSRBs) ?

211. Afinancial institution (FI) is investigating an alertgenerated by theautomated transaction monitoring system. TheAML analystmust determine whether the alert should beescalated for further investigationor archived as afalse positive.

Which action might bereasonablefor the AML analyst to take?

212. A new compliance officer is reviewing the bank’s anti-money laundering program and notices that the risk assessment was completed six months ago. Since that time, the bank acquired another financial institution, renamed the internal records group, and streamlined cash handling procedures.

Which factor causes the compliance officer to update the bank’s risk assessment?

213. Once a financial institution has reported suspicious transactions on a valued customer, it should cooperate with competent authorities by

214. Outgoing foreign transactions of similar amounts trigger a monitoring alert for a customer's accounts. During the evaluation of the accounts, the bank discovers the wire transfers were very small amounts and occurred within the last 3 months following a long period of inactivity. The wire transfers appear to originate from legal sources.

To assess the potential of terrorist financing, the institution must ensure the

215. Which of the following are red flags pertaining to potentially suspicious transactions by a customer? (Select Three.)

216. Which step should be taken to understand the types of financial institutions to whom the services are being offered when a correspondent bank permits “nested” relationships according to the Wolfsberg Group?

217. Alegal instrument executed between two nationsthat governscross-border information sharingis known as a:

218. A politically exposed person (PEP) maintains an account at a bank. Last month a money laundering analyst filed a suspicious transaction report about unusual wire deposits originated by unknown individuals in the home country of the official.

To whom should this situation be escalated?

219. Which is a purpose of imposing sanctions?

220. Whichkey metricwould provide themost valuable datatosenior managementabout theeffectiveness of its AML controls?

221. An automotive parts company in South America sends multiple $500, 000 wire transfers per week to ABC Holdings Ltd. in Asia referencing payment for silk flower shipments. Research reveals Sunrise Holdings, Ltd is registered in the British Virgin Islands with no available ownership information.

What are two red flags that indicate how trade-based money laundering could be occurring in this instance? (Choose two.)

222. Which red flags should be considered prior to establishing a relationship with a third party? (Select Two.)

223. Privacy anddata protection restrictionsplaced uponfinancial institutions (FIs) in the EUrequire that FIs must: (Select Two.)

224. Why do governments and multi-national bodies impose economic sanctions?

225. The most important anti-money laundering issue associated with on-line banking is accurately

226. A law enforcement agency submits several requests to a financial institution.

Which request is legitimate and requires the bank to respond?

227. Having a risk-based approach is central to a financial institution understanding the money laundering and terrorist financing risk to which they are exposed. The development of a money laundering and terrorist financing risk assessment is a key starting point.

Commonly used risk factors include. (Select Three.)

228. Themanager of a bank’s KYC teamdiscovers that ahigh-risk customer’s activity was not reviewed last quarteras required by the bank’s internal compliance schedule.

What should the KYC team manager do?

229. Which two channels can be utilized during a cross-border money laundering investigation to assist in gathering information according to Financial Action Task Force? (Choose two.)

230. Which safeguard is in place for Financial Intelligence Units (FIUs) to share information securely according to Egmont?

231. A new customer has just been onboarded in a securities firm. After a few weeks, there are unusual trading patterns that are being flagged.

Which pattern is most concerning to the compliance officer?

232. An example of an external factor that will affect an organization's AML risk is:

233. Whichsection of the USA PATRIOT Actrelates toforfeiture of funds and allows for extraterritorial reach?

234. Bank A is located in Country A. A wire transfer from Bank B located in Country B is processes by Bank A, where the funds are being moved to a customer at Bank C located in Country C. The wire transfer is deemed suspicious by Bank A.

Who should Bank A file a suspicious transaction report on?

235. Which statement about theextraterritorial reachofU.S. laws and legislationisaccurate?

236. An anti-money laundering specialist at a large institution is responsible for informing senior management about the status of the anti-money laundering program across the organization. The global institution handles retail banking, commercial banking, global markets, private banking and has an affiliated securities dealer. The specialist and the team provide corporate strategic direction to these areas on anti-money laundering related subjects.

The following information is reported to executive management on a regular basis:

• Total number of suspicious transactions identified and reported

• Suspicious transaction trends

• Training that has occurred for the various units

• Status report on the anti-money laundering regulatory environment

• Summary of exception reports

Which of the following additional elements is the most useful?

237. Criminals may misuse financial statements prepared by accountants to hide illicit assets.

Which of the following scenarios poses the greatest risk of financial statement manipulation by criminals?

238. A foreign bank operating under an offshore license wants to open a correspondent account with a United States (U.S.) bank. The foreign bank plans to provide payable through account services to some of its customers.

What must the foreign bank provide to the U.S. bank under the USA PATRIOT Act?

239. A law enforcement official calls a bank inquiring about a customer who is currently under investigation. The law enforcement official requests information about the customer.

How should the bank respond?

240. What indicates potential money laundering activity by a lawyer?

241. TheBasel Committee on Banking Supervisionpublished guidelines on the"Sound Management of Risks Related to Money Laundering and Financing of Terrorism."

With regard toidentifying and accepting customers, it recommends that banks: (Select Two.)

242. AFinancial Intelligence Unit (FIU) in a country has received aSuspicious Activity Report (SAR) involving significant suspicious fund transfers, both domestically and internationally. TheFIU requires additional information from a foreign countryto determine whether the matter needs to be referred for prosecution locally.

Which of the following statements istruein this scenario?

243. Which step should financial institutions take when complying with sanctions requirements?

244. Financial Action Task Force (FATF) -style regional bodies are created and obliged to understand the inherent money laundering and terrorist financing risks in the region of the world they serve.

What is one of the methods they use to understand these risks?

245. Which is a valid extraterritorial effect of the USA PATRIOT Act?

246. Which function provided by lawyers can be useful to a potential money launderer as documented by FATF in its typology report 2000-2001? Choose 3 answers

247. Financial crime risk related to the use of "hawalas" can stem from: (Select Two.)

248. Which money laundering risks are posed by the misuse of trust and asset management services? (Select Three.)

249. A bank is preparing for its anti-money laundering independent review, which is performed every two years under the direction of the compliance officer. The bank’s corporate audit department will conduct the review.

The compliance officer will review the final report before it is released to the Board of Directors.

What is the issue with this situation?

250. Who has the ultimate responsibility within a bank for ensuring that the bank has a comprehensive and effective Bank Secrecy Act / anti-money laundering (BSA/AML) program and oversight framework that is reasonably designed to ensure compliance with applicable regulations?

251. A bank operates in multiple countries and offers a variety of products and services. The compliance officer recently joined the bank and wants to better understand the inherent level of anti-money laundering risk across the entire organization.

Which two factors should be considered? (Choose two.)

252. When a financial institution (FI) is considering providing traditional banking services to a virtual asset service provider (VASP), consideration should be given to whether the FI: (Select Two.)

253. How should law enforcement obtain documentation from an institution when suspicious activity was identified? (Choose two.)

254. Why should a financial institution (Fl) require an update of its AML risk assessment?

255. An account officer who maintains an excellent relationship with the finance manager for a correspondent bank customer learns that many records for the correspondent bank have been requested by law enforcement. In the interest of maintaining a good relationship with the customer, the account officer sets up a meeting to discuss the legal request with the customer. The account officer intends to discuss points related to the investigation during the meeting.

What should an anti-money laundering specialist recommend?

256. Which scenario should be escalated as potentially suspicious activity?