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ACAMS-Prep-Mock 141 EXAM
QUESTIONS
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? - Correct Answer ✔️ ✔ ️ Customer, Transaction and Geographic Risk
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)? - Correct Answer ✔️ ✔️ 1 year
In which type of banking transaction is price manipulation, as a form of money laundering, a common practice? - Correct Answer ✔️ ✔️ Issue a letter of credit
What are three elements of a sound Customer Due Diligence Program? - Correct Answer ✔️ ✔️ Determination of what type of customer the financial institution will accept.
Training as to how and what extent to identify prospective customers.
Obtaining date of birth and address of a prospective customer
Which three characteristics make non-profit organizations vulnerable to misuse for terrorist financing? - Correct Answer ✔️ ✔️ Enjoying the public trust
Having access to considerable sources of funds.
Having a global presence for national and international operations and financial transactions
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? - Correct Answer ✔️ ✔
️ Update the monitoring software containing sanctioned persons
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? - Correct Answer ✔️ ✔️ Limit the discussions about the investigation with the customer and by satisfied that the account manager has provided proper notice to the customer.
Which action should be taken regarding a particular account once suspicious activity is reported by the institution? - Correct Answer ✔️ ✔️ secure all supporting documentation
The Wolfsberg Principles for Private Banking list circumstances that would require additional due diligence including activities that involve which three of these choices? - Correct Answer ✔️ ✔️ High risk countries including those identified by credible sources as having inadequate Ant-Money laundering standards
High risk Activities involving clients and beneficial owners whose source of wealth originates from activities known to be vulnerable to money laundering
Public officials including those individuals who have or had positions of public trust.
A compliance officer is looking to update an institution's private bank procedures. What should be included as recommended by the Wolfsberg AML Principles on Private Banking? - Correct Answer ✔️ ✔️ approval of Politically Exposed Persons (PEPs) by at least one person other than the relationship manager.
Which three circumstances are indicators for defining a customer as required additional diligence according to the Wolfsberg Principles on Private Banking? - Correct Answer ✔️ ✔️ Persons residing in a country having funds from countries with inadequate AML standards.
Exploring leads through internet searches
In the FATF 40 recommendations, the focus of AML efforts has been expanded beyond
Financial Institutions. Which three businesses and/or professions are covered? - Correct Answer ✔️ ✔️ Real Estate Agents when involved in transactions for clients concerning buying and selling properties
Dealers in Art, when they deal with cash over a certain amount
TSCP Trust and company service providers.
What is a criterion for FATF membership? - Correct Answer ✔️ ✔️ Should be a member of a FATF-style regional body
Which three areas do FATF's 40 recommendations cover? - Correct Answer ✔ ️ ✔️ International Cooperation
Financial Systems and their Regulation
The Criminal Justice System
What is suspicious activity or red flag with regard to a customer's activity? - Correct Answer ✔️ ✔️ Paying the teller he deals with a regular gratuity
Exchanging small denomination bills for large ones
engaging in wire transactions with an offshore account
A remittance company received a money order from a senior political figure m the Philippines to transfer a large sum of money to a charity group in the Philippines. A review of the charity group revealed a director having dose ties with a known terrorist group primarily financed through kidnapping and extortion.
What is a key risk indicator associated with terrorism financing? - Correct Answer ✔️ ✔️ There is a link between the charity group and a known terrorist group
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? - Correct Answer ✔️ ✔️ Notify the anti-money laundering specialist of his bank, but do not call the customer
What are three risk factors a financial institution should examine with regard to a proposed new product? - Correct Answer ✔ ️ ✔️ The complexity of the product.
The need to verify the identification of the customer.
Whether the product is easily transferable.
The purpose of an anti-money laundering program should be to do what? - Correct Answer ✔️ ✔️ Avoid criticism and sanctions from government regulators
In some instances, a financial institution may receive a warrant from law enforcement authorities to search its premises. A search warrant is a grant of permission from a court for a law enforcement agency to search certain designated premises and seize specific categories of items or information. Generally, what is the required threshold for the requesting agency to establish in order to obtain a search warrant of a financial institution? - Correct Answer ✔️ ✔️ reasonable belief--(CHECK) Probable cause
When requested by law enforcement via legal process to provide records or documentation, what should the officers of financial institution do? - Correct Answer ✔️ ✔️ Not act on the legal process until the bank officer has contact with the agent and learns what the agent is investigating
An anti-money laundering specialist at a large institution is responsible for information senior management about the status of the anti-money laundering program across the organization.
Which report is the most useful?
What should a bank focus on to ensure on-going compliance with its AML program? - Correct Answer ✔️ ✔️ It should ensure that it develops and provides on going targeted training of all current and new employees.
What was the topic the Wolfsberg Group's first guidance addressed? - Correct Answer ✔️ ✔️ Private banking
A prospective AML officer comes highly recommended by a bank's up-stream correspondent institution of similar size and make-up, located in a different city in the same country. The bank is interested in hiring the individual. What should be the next step taken by the Board of Directors? - Correct Answer ✔️ ✔ ️ Do a thorough background check
What are three factors a financial institution should examine with regard to a new customer who is opening up a new account? - Correct Answer ✔️ ✔ ️ The type and size of the business the customer runs
The legal structure of the customers business
the previous financial institutions where the customer has banked
Which three do the Office of Foreign Asset Control regulations cover? - Correct
Answer ✔️ ✔️ All U.S. -domiciled entities and their foreign branches
All foreign based entities that have U.S. customers
All U.S. Citizens
Name two statements about the Wolfsberg Group are true? - Correct Answer ✔️ ✔️ It focuses primarily on Know Your Customer, AML, and CTF guidance
It has no power to impose principles/guidance
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? - Correct Answer ✔️ ✔️ A training program for senior managment and staff.
An anti-money laundering specialist has just developed and implemented an anti-money laundering program. What is the most effective resource to evaluate the effectiveness of the program? - Correct Answer ✔️ ✔️ a qualified indpendent pary/auditor
What should be part of an institution's monitoring and STR filing process? - Correct Answer ✔️ ✔️ Review on a regular basis of all high-risk accounts and transactions
Review of STR filing trends and typologies
Periodic training on the identification of red flags
An anti-money laundering officer for a financial institution has been conducting a monthly self assessment.
The officer reviews the accounts increase in 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. What is the nest course of action for the antimoney laundering officer to
take? - Correct Answer ✔️ ✔️ Implement a revision to the account-opening training program
Which statement about U.S. Specified Unlawful Activities (SUA) is true? - Correct Answer ✔️ ✔️ In order to secure a conviction, the defendant must be proven to have known the precise nature of the source of funds
Which method most likely indicates the placement stage of laundering dirty money in a land based casino? - Correct Answer ✔️ ✔️ Using cash to buy casino winnings from legitimate winners ata premium
In many jurisdictions, financial institutions are prohibited from hiring a person who has been convicted of what type of offense? - Correct Answer ✔️ ✔ ️ offenses involving disohonesty
What is one recommendation of the Basel Committee's 2001 paper Customer Due Diligence for Banks"? - Correct Answer ✔️ ✔️ Banks should develop clear descriptions of acceptable customers
In which three situations is correspondent banking most vulnerable to money laundering? - Correct Answer ✔ ️ ✔️ When allowing foreign banks to use
immediately recognizes the account as one owned by the bank Chief Executive Officer's 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? - Correct
Answer ✔️ ✔️ Advise the bank's senior legal advisor of the situation.
Why would a credit card account likely not be used in the placement stage of money laundering? - Correct Answer ✔️ ✔️ Cash payments are generally restricted.
Which action should an FIU consider taking when it has information that might be useful to another FIU? - Correct Answer ✔️ ✔️ Supply the information to the other FIU spontaneously as soon as the relevance of sharing the information is identified.
What should senior management do in order to promote a culture of anti- money laundering compliance? - Correct Answer ✔ ️ ✔️ They should include compliance with AML procedures as a condition of employment.
What is the result of an increased awareness of the potential for gatekeepers to assist in money laundering in recent years? - Correct Answer ✔️ ✔ ️ Lawyers who represent money launderers can more easily be prosecuted
What are some red flags financial institutions should be aware of when trying to verify the identity of a customer? - Correct Answer ✔ ️ ✔️ customer having unusual documents from a foreign country
customer having no permanent address
customer not having a connected phone
What are three potential issues for foreign financial institutions maintaining correspondent accounts with U.S. banks under the Patriot Act - Correct
Answer ✔️ ✔️ cancellation of correspondent banking relationships
forfeiture of funds in a U.S. inter-bank account
