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1. When assessing and managing money laundering risks while operating in foreign jurisdictions different from that of the head office, an effective AML monitoring program should:

2. Whichsuspicious activity may be the strongest indicator of money laundering through a casino?

3. Sanctions screening requirements include that a financial institution should:

4. Which of the below statements are supported by the Financial Action Task Force (FATF) 40 Recommendations adopted in 2012? (Select Two.)

5. A suspicious transaction report filed on a car dealer structuring deposits initiates a criminal investigation. The dealer changes branches and begins placing transactions with a frontline employee to whom the dealer has given numerous gifts.

This employee handles all of the dealer's structured deposits and does not report the suspicious activity internally.

The competent authority has advised the anti-money laundering specialist to avoid tipping off the employee until the investigation is finalized.

What action should the specialist take next?

6. A profitable commercial customer who operates an import-export business has multiple accounts with the same institution at branches m different locations. The customer receives funds from a jurisdiction perceived as highly corrupt according to Transparency International ratings. The customer makes frequent transfers among the accounts and prefers to manage the accounts separately.

What should the institution do to mitigate the risk associated with these accounts?

7. Afinancial institution (FI) is investigating an alert generated by the automated transaction monitoring system. The AML analyst must determine whether the alert should deescalated for further investigation or archived as a false positive.

Which action might be reasonable for the AML analyst to take?

8. How does the Egmont Group assist financial intelligence unit members to accomplish their goals? (Select Three.)

9. Which of the following are key AML measures that a regulated asset management company in the European Union (EU)should implement? (Select Two.)

10. A compliance officer for a casino may suspect money laundering if an individual:

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

12. 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.)

13. 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?

14. 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,

15. Which risk factors are associated with acquiring and servicing the banking activities of customers considered higher risk for financial crime activities? (Select Three.)

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

17. 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?

18. From an international standards perspective, both the EU and FATF consider data sharing a crucial component of effectiveanti-money laundering measures because data sharing:

19. An anti-money laundering specialist is concerned that several suspicious transaction reports will discuss potential illegal activity of bank employees.

In this situation, which of the following is the immediate concern for the institution?

20. To ensure that an institution’s anti-money laundering program is current, which step should be taken?

21. A suspicious transaction report has been filed on an account owned by the wife of the bank's Chief Executive Officer.

Which of the following is the most important consideration when deciding whether to recommend closing the account?

22. OFAC-issued regulations apply to which entities? (Choose two.)

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

24. 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?

25. Which unusual or suspicious activity by a financial institution's (FI's) employee requires additional investigation and scrutiny?

26. Which of the following is the financial stage of money laundering?

27. The bank for International Settlements provides the secretariat for which organization?

28. A prospective client walks into an accounting firm wanting to incorporate a company. The accountant feels uncomfortable after the meeting.

Which two of the accountant's observations warrant escalation to the compliance officer? (Select Two.)

29. A long-term client of an insurance company makes changes to a policy that require payment of an additional lump sum. The amount payable is high, though within the client's means based on the KYC information collected. The payment is made via a company in another jurisdiction that is known to have lax AML controls.

Which indicator of suspicious activity is present?

30. A compliance analyst is reviewing recent activity between a publicly traded company and a company in a high risk jurisdiction.

Which detail suggests that escalation is warranted?

31. The regulators of a US financial institution find that the institution has failed to establish and maintain a reasonably designed AML program.

Which regulatory actions should be taken? (Select Two.)

32. TheBasel Committee on Banking Supervision published guidelines on the “Sound Management of Risks Related to Money Laundering and Financing of Terrorism."

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

33. Which of the following statements best describes the financial crime risk associated with gatekeepers?

34. Which is a key aspect in the FATF Recommendations that best describes the essential foundation for allocating resources in AML/CFT regimes for countries and financial institutions (FIs)?

35. What are the European Union Directives on Money Laundering?

36. How should a compliance officer respond to law enforcement agencies' request for information on a customer undergoing an investigation?

37. Which piece of information identified by customer screening would be the most likely reason to trigger consideration of exiting a business relationship with a customer because of financial crime concerns?

38. What are the roles of a government Financial Intelligence Unit (FIU)? (Select Three.)

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

40. A national Financial Intelligence Unit, which is responsible for receiving, analyzing and disseminating disclosure of financial information, should consider becoming a member of what organization?

41. Which key factor would result in the decision for a financial institution (FI) to exit a client relationship?

42. 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?

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

What are important considerations for selecting and implementing the AML system? (Select Two.)

44. Which two actions should Financial Intelligence Units (FIUs) take when submitting a request to another FIU? (Choose two.)

45. According to the Basel Committee, customer acceptance, customer due diligence, and record-keeping policies and procedures should be changed as necessary to:

46. Which of the following customer transactions with a securities dealer would indicate the highest suspicion of money laundering?

47. A customer has borrowed the cash surrender value of their life insurance policies.

Which requires a further investigation and filing of the suspicious activity report?

48. In May 2002, the Wolfsberg Principles on Private Banking were revised and included a section that prohibits the use of internal non-client accounts in a manner that would prevent officials from appropriate monitoring movements of funds or keep clients from being linked to the movement of funds on their behalf.

What is another name for these internal, non-client accounts?

49. An internal review of anti-money laundering training documentation revealed only new agents employed by a financial institution that sells life insurance products were trained. Additionally, it typically took the institution 8 months to begin training for new actuaries. The compliance officer explained training was limited to actuaries because they perform the only high-risk function. The institution relied on e-learning techniques without follow-up assessment.

Which of the following issues would the internal review most likely recommend?

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

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

52. Alegal instrument executed between two nations governing cross-border information sharing is called a:

53. AML training programs should extend beyond basic concepts to deliver targeted training by:

54. Which is a red flag for funds transfers?

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

Which requires a referral to AML investigations for further review?

56. Trusts where the settlor, trustee and beneficiaries are identified and the shares are in bearer form.

57. What are two risks to institutions for violating anti-money laundering laws as demonstrated by the 2012 HSBC settlement with United States authorities? (Choose two.)

58. 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.)

59. What should a financial institution (FI) do in response to a formal law enforcement request to produce documents?

60. 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?

61. Law enforcement is confidentially investigating 20 individuals suspected of belonging to a criminal network allegedly involved in laundering tens of millions of euros for cybercriminals.

Which actions need to be taken by the AML Specialist at a bank upon learning the alert? (Select Two.)

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

63. Which section of the USA PATRIOT Act permits the U.S. government to seize funds deposited in a U.S. correspondent account of a foreign bank, creating extraterritorial impact?

64. Which scenario is closest to the definition of money laundering the United Nations Convention against Transnational Organized Crime and Other Protocols provided?

65. Which of the following is among the Financial Action Task Force criteria defining non-cooperative countries and territories?

66. Under requirements for correspondent accounts in the USA PATRIOT Act, the word "certification" refers to a written representation by a

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

68. UN sanctions are the most effective and legitimate non-violent multilateral tools to respond to international security threats when they:

69. Which private banking situation requires due diligence actions to be implemented according to the AML principles of the Wolfsberg group?

70. Whichsituation involving a vendor presents increased AML and/or sanctions risk to an organization?

71. The Wolfsberg Group has issued a number of documents since its inception aiming to:

72. A bank employee reviews wire transactions looking for indications of wire stripping.

Which two actions should the employee take to complete appropriate bank procedures? (Choose two.)

73. Which of the following are included in the11 Immediate Outcomes outlined in the Financial Action Task Force (FATF) methodology for assessing technical compliance with the FATF Recommendations and the effectiveness of AML/CFT/CPF systems during mutual evaluations? (Select Three.)

74. A division anti-money laundering officer for a financial institution has been conducting a monthly self-assessment.

The officer reviews the accounts opened for compliance with a long standing Know Your Customer policy.

The self-assessment for the latest month shows a significant increase in compliance deficiencies for the first time in more than a year.

Which of the following is the next course of action for the anti-money laundering officer to take?

75. Historically, which vehicle is most often used to hide beneficial ownership?

76. A well-developed anti-money laundering compliance program is unlikely to achieve institutional goals without

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

78. What is true regarding disclosure to a law enforcement agency by a financial institution of the supporting documentation for a suspicious transaction report?

79. Which regulatory bodies cooperate when dealing with cross-border suspicious or unusual financial activity investigations?

80. 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?

81. Arecruitment manager in the human resources department of a bank has shortlisted a candidate for the position of relationship manager in its private banking division.

The bank’s compliance policy requires proper background checks to protect against fraud and money laundering risks.

Which resources would be most useful for identifying potential negative information regarding the shortlisted candidate? (Select Three.)

82. A compliance officer is conducting a review of the automated transaction monitoring system.

What would be most likely to result in a change in the monitoring system parameters?

83. A SAR/STR should be filed when the accountable institution identifies that:

84. The compliance officer at a crowd funding website is in charge of monitoring new crowd funding projects.

Recently, the number of crowd funding projects has significantly increased.

Which red flag indicates the highest anti-money laundering risk?

85. The vice president of the foreign correspondent banking department at a large United States bank has been notified that a foreign bank with an offshore license wants to open a correspondent account.

Which two things must the vice president acquire under the USA PATRIOT Act? (Choose two.)

86. How can awareness be raised within countries that do not have sanctions regulatory regimes? (Select Two.)

87. Whichsection of the USA PATRIOT Act relates to forfeiture of funds and allows for extraterritorial reach?

88. A compliance officer learns from an Information Technology (IT) source of a potential new financial service being discussed by the new product approval committee.

What is the correct next course of action?

89. What are two reasons physical certificates present a money laundering risk to broker-dealers? (Choose two.)

90. An anti-money laundering audit identifies a significant weakness in how transaction monitoring alerts are

cleared. Audit sampling identified potentially suspicious activity that was cleared as not suspicious.

Management accepts the audit finding and develops a remediation plan.

What is the role of the auditor during the correction phase?

91. What core objective does the Egmont Group suggest would lead to an effective national Financial Intelligence Unit (FIU)?

92. 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.)

93. Trusts established in certain offshore jurisdictions make good vehicles to lay under money for which of the following reasons?

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

95. When should a financial institution (FI) exit a relationship? (Choose two.)

96. Can trading in antiques be useful for money laundering?

97. What is a key objective of the Egmont Group?

98. 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.)

99. AnAML compliance officer receives an independent audit report with a number of findings.

An appropriate response to the report would include:

100. 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

101. AFinancial Intelligence Unit (FIU)in a country has received a SAR involving significant suspicious fund transfers, not only within its jurisdiction but also in a foreign country. Further information is required from the foreign country to determine whether the matter needs to be referred for prosecution locally.

Which of the following statements is true in this scenario?

102. Which of the following ate efficient approaches lo performing horizon scanning? (Select Two.)

103. 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?

104. Which three statements are true about on-line banking offering a significant money laundering risk to a financial institution?

105. According to the Basel Committee's principles on customer due diligence, a bank should:

106. The training department is conducting awareness training for unusual customer identification scenarios.

Which two indicators should be included? (Select Two.)

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

108. Under the Egmont Group Principles, information exchange among financial intelligence units (FlUs)

should be conducted:

109. What national agency is responsible for analyzing and assessing the information it receives to substantiate possible existence of money laundering or terrorist financing activities?

110. A customer living in a high-risk jurisdiction makes frequent, large cash deposits at a bank. The same customer sends small wire transfers to unrelated parties in other high-risk jurisdictions.

What are two red flags that may indicate money laundering? (Choose two.)

111. Which activities could be considered a potential spear phishing scam? (Select Three.)

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

113. Which situations would require a financial institution (FI) to update its ML/TF risk assessment? (Choose two.)

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

115. A compliance officer is tasked with implementing an enterprise-wide anti-money laundering program for a bank, which operates in multiple countries. Not all the bank products and services are available in all countries.

Which three factors should be considered as part of the approach? (Choose three.)

116. 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?

117. 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?

118. As a result of an audit, a policy exception was identified that had been approved by the compliance officer.

The auditor determined that the policy exception is a violation of a regulatory requirement.

What should the auditor do?

119. Release of the EU's Fourth AML Directive resulted in what change to member state*s procedures? (Select Two.)

120. Which regulation permits financial institutions, upon providing notice to the US Department of the Treasury, to share information with one another in order to identify and report activities that may involve money laundering or terrorist activity to the federal government?

121. The board of directors receives notice from the primary regulator of the bank that potentially suspicious activity has been identified and the bank president appears to be involved. The Board asks the compliance officer for advice.

Which action should the compliance officer take when informed?

122. A money transmitter’s nation-wide agent network remits funds to a country in Africa on behalf of an immigrant community based in the United States. A terrorist group is known to operate openly in this African country. In reviewing transaction records, the compliance officer detects a pattern where two customers together visit the same agent each week and remit the same amount of funds, $2,500, to the same recipient in the country in Africa.

What should alert the compliance officer to possible money laundering or terrorist financing activity by the two customers?

123. An AML compliance officer receives notice of government update including the names of the latest terrorists sanctioned by the United Nations Security Council.

Which would be the most appropriate step to take?

124. Which are common types of economic sanctions? (Choose three.)

125. A new AML Officer for a US-based money service business (MSB) is drafting procedures around types of activity that require further review.

Which should be included? (Choose two.)

126. Which is a purpose of imposing sanctions?

127. A bank located in New York has identified suspicious transactions at a correspondent bank in Chin A. 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?

128. Which of the following businesses require enhanced or additional scenarios for identifying anomalous transactions? (Select Two.)

129. Which principle about safeguarding privacy and data should an auditor adhere to when performing an AML investigation?

130. A financial institution's (Fl's) policy is to apply enhanced due diligence (EDD) for every new client to ensure the effectiveness of the program.

How should a consultant advise the Fl's management team?

131. What is a core function of a Financial Intelligence Unit (FIU)as described in FATF Recommendation 29?

132. What is the importance of a risk-based approach (RBA) and building controls commensurate with risks?

133. The main purpose of the US Treasury Department for OFAC's extraterritorial reach is to:

134. The Office of Foreign Assets Control (OFAC) is responsible for:

135. An anti-money laundering specialist working at a bank just received a legal request from a law enforcement agency mandating the release of all financial transaction records relating to an account at the bank. The specialist immediately recognizes the account as one owned by the bank Chief Executive Officers brother. During research to gather the requested documents, the specialist finds several internal memos he had sent to the bank president with concerns regarding possible suspicious activity relating to this account. The specialist recalls the bank president verbally responded to each memo with an explanation of the activity and indicated there was no cause for concern.

What should the specialist do with respect to these internal memos?

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

Which customer action indicates potential money laundering?

137. 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?

138. A bank has maintained an account for a European charity for several years. The charity provides clothing to persons in need in various countries with active terrorists’ cells.

Which action by the charity indicates possible terrorist financing?

139. 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?

140. 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

141. Section 319(a) of the USA PATRIOT Act:

142. 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?

143. Which of the following should an anti-money laundering specialist consider the most serious deficiency when detected during a regulatory audit of the anti-money laundering program?

144. Which of the following scenarios warrants enhanced due diligence (EDD)? (Select Three.)

145. What is a method of placement that can be used by a money launderer in a deposit taking institution?

146. 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.)

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

148. In the summer, an institution identifies anti-money laundering concerns regarding a customer’s account activity. The customer, an ice cream, has deposited a lot of checks drawn on banks in foreign countries, sent large number of high dollar international wires to different countries, made cash deposits of a few hundred dollars every few days and written multiple checks for a few hundred dollars to the same dozen payees every two weeks.

Which two transaction types warrant investigation? (Choose two.)

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

150. Which three elements should be considered in an institution’s enhanced due diligence process to assure itself that it has secured sufficient understanding of its higher risk respondent bank customers according to the Wolfsberg Principles on Correspondent Banking?

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

Which requires a referral to AML Investigations for further review?

152. Aninternational bank is investigating a payment requested by one of its correspondent relationships that generated an alert in the automated transaction monitoring system. The payment originated from a corporation located in Hong Kong, and the final beneficiary is an individual in New York.

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

153. Suspicious activity triggered a suspicious transaction report filing on a company that holds an account at a large commercial bank. Investigations revealed that a member of the bank's Board of Directors is the major shareholder of the company. Further review revealed the bank had no

reasonable explanation for the activity, but could not confirm if criminal activity occurred.

Which of the following is the next best course of action for the compliance officer?

154. A financial institution is conducting an enterprise-wide risk assessment (EWRA) and has identified a high inherent risk of money laundering associated with its private banking division due to the clientele's high net worth and complex financial structures. However, the institution has implemented robust customer due diligence (CDD) and enhanced due diligence (EDD) procedures, along with sophisticated transaction monitoring systems.

How would these controls impact the assessment of residual risk?

155. 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?

156. What is a key objective of the Egmont Group?

157. An employee at a financial institution (Fl) suspects that one of their co-workers is involved in a financial investment scam syndicate.

Which step should be taken next by the employee who has the suspicion?

158. 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?

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

160. After review of the financial institution's enterprise-wide anti-money laundering risk assessment, the new compliance officer identifies several deficiencies that need attention.

Which deficiency could lead to the highest potential for unmitigated risk?

161. Which two statements are true regarding the European Union Money Laundering Directives? (Choose two.)

162. Which of the following activities is most likely associated with a lawyer participating in a money laundering scheme?

163. Which are the two most common controls a financial institution (FI) uses to identify suspicious money-laundering activity? (Choose two.)

164. The Chief Compliance Officer (CCO) of a financial institution has been asked by a manufacturing customer reliant upon imported raw materials if there will be repercussions to his business following the weak assessment of the recent publicly issued Financial Action Task Force (FATF) Mutual Evaluation Report (MER).

How should the CCO respond?

165. Which primary international authoritative body designates sanctions?

166. Which is an emerging risk associated with cyber-enabled fraud?

167. 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

168. Public-private partnerships (PPPs) that involve the sharing of information between law enforcement authorities, Financial Intelligence Units (FIUs), and the private sector are established to: (Select Two.)

169. Which activity associated with new or developing technologies does the Financial Action Task Force recommend financial institutions pay special attention to?

170. What is the currency threshold under the European Union Fourth Anti-Money Laundering Directive?

171. Which of the following are best practices to raise awareness and train staff regarding the risks related to financial crime? (Select Three.)

172. Which three criteria does a shell bank meet according to the Wolfsberg Principles on Correspondent Banking? Choose 3 answers.

173. 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?

174. What are two requirements for monitoring and reporting suspicious activity for correspondent banking according to the Wolfsberg Principles? (Choose two.)

175. What are two aspects of the Wolfsberg Anti-Money Laundering (AML) Principles for Correspondent Banking? (Choose two.)

176. Country A’s anti-corruption authority has been investigating the movement 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 required evidence to prosecute the case would be most effective?

177. Which are key objectives of the Egmont Group? (Select Two.)

178. 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________?

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

180. 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

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

182. A non-U.S. bank wants to open an account at Bank A, which is a U.S.-based bank.

Which information must Bank A obtain under the USA PATRIOT Act?

183. 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?

184. A customer of a financial Institution (Fl) complained that they had received multiple emails appearing to originate from the Fl urging them to click on a link or open a remittance attachment for confirmation. After opening the attachment, the customer later realized that funds had been systematically transferred out of their bank account without their knowledge.

Which type of cybercrime is described in this scenario?

185. 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?

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

187. A compliance officer at a large financial institution has been tasked by senior management to lead a team in an internal review and potential revision of the institution’s customer onboarding program following a regulatory enforcement action of another institution.

Which step should the compliance officer perform first?

188. 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?

189. Which test should be included in a bank's Office of Foreign Assets Control sanctions screening audit program?

190. Which of the following risk factors are considered by many supervisory authorities as representing a higher inherent risk associated with MSBs? (Select Two.)

191. What does the Basel Committee’s Customer Due Diligence for Banks paper suggest that a bank needs to have in place when establishing an account for a corporate business entity?

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

193. Which three conduits for moving terrorist-related funds do terrorist financing generally favor? Choose 3 answers

194. Which statements relate to the mandate, roles, and responsibilities of the Financial Action Task Force (FATF) and the FATF-Style Regional Bodies (FSRBs)? (Select Two).

195. Which red flag indicates high potential for money laundering in a real estate purchase?

196. According to the Financial Action Task Force, which action must a financial institution take to fulfill customer due diligence obligations?

197. Under the Wolfsberg Correspondent Banking Principles, which action is considered an enhanced due diligence obligation to correspondent banking clients that present greater risks?

198. A US casino customer has won 55,518 USD. The customer goes to the casino cashier cage to execute some transactions.

Which ^transactions are an indicator of money laundering? (Select Two.)

199. Transfers of money over the last 6 months to a corporation in a jurisdiction with strict secrecy laws triggered an alert.

Which of the following should cause the most suspicion of money laundering?

200. An institution receives a request for credit from a local company that has been a client for many years. The information provided by the company indicates that its assets have increased substantially with the addition of several new subsidiaries. Further research performed by the institution indicates the new subsidiaries are recently created shell companies.

Could this indicate potential money laundering?

201. According to FinCEN, which red flags within a bank account may, taken together, be indications of modern slavery, human trafficking, and exploitation? (Select Two.)

202. What do the Financial Action Task Force (FATF) mutual evaluations of each member assess?

203. Based on the AML principles outlined by the Wolfsberg Group, what do private and correspondent banks have in common when monitoring for terrorist financing?

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

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

206. News published in Country A reports that a politically exposed person (PEP) had received a bribe from a transnational company headquartered in a developing country of approximately USS1.5 million deposited into on account at a financial institution (Fl> located in Country B Both countries are members of the Egmont Group The account where the money was deposited belongs to the PEP's immediate family member. To corroborate the facts, the PIU of Country A sent a formal request via secure communication channels for further information from its counterpart FIU in Country B.

According to Egmont principles, the FIU of Country B can:

207. The Egmont Group Statement of Purpose

208. Which measure to mitigate risk does the Basel Committee’s Customer Due Diligence Principles suggest banks apply when accepting business from non-face-to-face customers?

209. In order to demonstrate commitment to AML compliance within a bank, the Board of Directors should:

210. 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?

211. 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?

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

213. The anti-money laundering compliance officer for a small money transmitter has several agent locations in the same geographic area in the United States. The customers are immigrants from Country A and the majority of the funds are remitted to Country A.

In a meeting with one of the agents, it is recently discovered that two new customers have been coming in three times a week and sending funds to the same recipient in Country B. Each cash transaction always totals exactly $8,000.

What should alert the agent to possible money laundering activity by the two customers?

214. Which statement about the extraterritorial reachof U.S. laws and legislation is accurate?

215. Which risk factors are considered when assessing risk rating of customers? (Select Three.)

216. A customer comes into a financial institution and deposits a large amount of cash. He has never done that before. When asked about the deposit, he indicates he recently sold a used car and received cash.

He does not trust forms of payment and is wary of counterfeit money orders.

What should the bank do?

217. When a bank performs a risk assessment, what areas should an institution focus on?

218. Who bears the ultimate responsibility for approving a financial institution's relationship with a politically exposed person?

219. Which of the following are risk factors a financial institution should examine when onboarding a new corporate customer? (Select Three.)

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

221. Abank in the Netherlands has been requested to share information about a series of transactions and related customers with a bank in Italy. Both banks are subject to European Union jurisdiction.

Which factor is most important to consider before the Dutch bank shares the requested information with the Italian bank?

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

223. The owner of a real estate investment company deposits multiple cashier's checks that were bought using cash over a three-month period, from the sale of two apartments. This account also receives several electronic transfers from other financial institutions for 10.000 USD each.

What activity is considered suspicious of money laundering?

224. Which key aspect of the Office of Foreign Assets Control's extraterritorial reach specifically relates to prohibited transactions?

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

226. At a minimum, who should receive role-specific AML training? (Select Three.)

227. Which scenario best justifies why a financial institution (FI) might close a customer’s account?

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

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

230. 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?

231. According to the Financial Action Task Force, financial institutions should be required to implement:

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

233. 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?

234. 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?

235. Whichchanges at a financial institution (FI) should trigger an enterprise-wide reassessment of its inherent AML risk exposure? (Select Three.)

236. When implementing a risk-based approach related to casinos, which risks are related to the customer as an individual? (Choose two.)

237. 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?

238. The new compliance officer has reviewed the bank’s anti-money laundering training program. The program consists of online training for all new employees within 30 days of hire date and annual refresher training to all employees. In addition, there is specialized training for areas that deal with higher risk products and customers.

Over the last year, there have been no regulatory changes and no new products or services have been introduced. The compliance officer wants to propose to the board of directors that the annual refresher training is still current and can be delivered unchanged to all employees.

Which two critical pieces of information could be missed by taking this approach? (Choose two.)

239. Which three stages of money laundering are on-line banking vulnerable to?

240. What are two legal risks of having inadequate privacy policies and procedures? (Choose two.)