100 Quiz Questions About Money Laundering

100 Quiz Questions About Money Laundering

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  • What Is Money Laundering?

    • Placement – Placing of the proceeds of crime
    • Layering – Hiding of the proceeds from their criminal origin by ‘layers’ of transactions
    • Integration – Creating a legitimate explanation for the proceeds
    • All of the Above
  • Money laundering or Hawala in UAE is the common term used to refer to the method by which offenders disguise the source of money?

    • True
    • False
    • May Be
    • I Don,t Know
  • Which of the following is not acceptable as verification of identity?

    • Birth Certificate
    • Driving Licence
    • Passport
    • Emirates ID
  • A person purchases processors and walks right into a casino with cash, plays for some time, then cashes in the chips, requiring payment is called Money Laundering.

    • False
    • True
    • May Be
    • I Don,t Know
  • I Have Dealt With My Clients For Many Years , Do I Still Need To Carry Out Customer Due Diligence?

    • No need to keep CDD up-to-date for all your clients
    • You need to keep CDD up-to-date for all your clients
    • Some Time
    • I Don,t Know
  • The AML regulations are enforced by a range of regulatory bodies.

    • True
    • False
    • May Be
    • I Don,t Know
  • A Commercial check is a check made payable to a company.All reporting laws will not apply to commercial check cashing transactions, like any other natural check

    • True
    • False
    • I don,t Know
  • The Anti-Money Laundering regulations are governed by 4 Acts: The Proceeds of Crime Act, The Serious Organised Crime and Police Act, The Terrorist Act and the Money Laundering Regulations.

    • True
    • False
    • I Don,t Know
  • While opening an account of a Public Limited company, which of the following is a must?

    • Introduction by ROC
    • Introduction by a customer known to the banker
    • Certificate of incorporation/Certificate of commencement of business
  • What Are Peps?

    • Philippine Entertainment Portal
    • Post Exposure Prophylaxis
    • Politically Exposed Persons
    • Pauli Exclusion Principle
  • What is KYC?

    • Kick Your Customer
    • Know Your Criminals
    • Know Your Customer
    • Know Your Company
  • Who Is A Customer?

    • Any person or entity connected with a financial transaction which can pose significant reputational or other risks to the bank, say a wire transfer or issue of high value demand draft as a single transaction.
    • A person or entity that maintains an account and/or has a business relationship with the bank
    • Beneficiaries of transactions conducted by professional intermediaries, such as Stock Brokers, Chartered Accountants, Solicitors etc as permitted under the law
    • One on whose behalf the account is maintained (i.e. the beneficial owner.
    • All of the Above
  • Copies of Currency Transaction Reports (“CTR”) must be maintained for a period of?

    • 8 Years
    • 2 Years
    • 5 Years
    • 10 Years
  • In order to prevent fraud and money laundering it is important to verify individuals carrying out financial transactions.

    • True
    • False
  • What are the basic requirements of KYC and basic CDD?

    • To identify, verify and record
    • To run World Check and Google checks
    • To identify, verify and assess
    • To identify, have lunch with and take their money
  • Which of the following is NOT a step in Money Laundering?

    • Spending
    • Placement
    • Layering
    • Re-Integration
  • A customer buys money orders for $5,999 cash on Monday, $9,000 cash on wednesday, $9,500 cash on thursday, and $8,000 cash on friday. this deserves more investigation as a potential cause of structuring.

    • True
    • False
  • In order to prevent fraud and money laundering it is important to verify individuals carrying out financial transactions is called Electronic Verification?

    • True
    • False
  • Failure to report suspicious activities can result in penalties or legal action against you and your company.

    • True
    • False
  • What can be used to Launder Money?

    • Property
    • Businesses
    • Race Horses
    • All of the above
  • What Is Kyc Policy?

    • Customer Acceptance Policy
    • Monitoring of Transactio
    • Risk Management
    • All of the Above
  • Your AML program should warn employees against disclosing any customers social security number, drivers license number, address, or date of birth date because it could be used to help identity theft.

    • True
    • False
  • Which of the following may be an indicator of money laundering?

    • Paying by Credit Cards
    • Insurance taken out from property
    • Expensive Policies Being taken out and then Cancelled
  • If I see something that looks suspicious what should I do?

    • Discuss it with the client
    • Contact the Police
    • Say nothing and hope that it will go away
    • Inform your Compliance officer or Manager
  • A money launder may offer a winning customer more money than a winning ticket is worth because

    • once they cash the ticket launders have a legitimate source for the cash
    • launders are generous
    • launders want a chance to talk to the cashier
  • Which of the following are examples of willful blindness?

    • completing a transaction for a less, non-reportable amount after a customer has refused to produced id for a larger transaction
    • selling multiple money orders to a customers and not recording his or her id
    • allowing a customer to purchase money orders under different names
    • All of the Above
  • Which of these is the biggest potential risk area?

    • Mobile Banking
    • Shares
    • Cash Machines
    • Cheque Books
  • A number of recomendations have been made by whom?

    • Financial Laundering Task Force
    • Financial Action Task Force
    • Financial Aging Terror Fund
    • Financial Action Task Field
  • Which of these activities might require a suspicious activity report?

    • a customer requests an unusually high dollar transaction and cannot explain the reason for the transaction or the source of the cash
    • a customer appears nervous and asks unusual questions about your record keeping
    • a customer requests an unusually high dollar transaction and cannot explain the reason for the transaction or the source of the cash
    • All of the Above
  • Which of the following is NOT an acceptable proof of identity?

    • Current UAE Driving License
    • Current Signed Passport
    • Emirates ID
    • Bank Card
  • Customer identification means identifying the customer and verifying his/her identity through reliable and independent documents, data and information

    • True
    • False
  • Ongoing Customer Due Diligence is required for?

    • Existing Customers
    • New Customers
    • All Customers
  • Under FATF guidelines companies have a duty of care called what?

    • Customer Due Diligence
    • Monitor Customers Manually
    • Customer Due Care
    • Know Your Customer
  • The CTR must be complete and accurate. All required consumer information should be obtained from the consumer before you complete the transaction. If the consumer cannot or will not provide responsive and complete information, the transaction should

    • Yes
    • Completed with a note to get the information later
    • Not be completed
  • Which Clubs are subject to the AML/CTF Act?

    • All Clubs
    • clubs which provide bingo but not electronic gaming and wagering facilities
    • clubs which provide electronic gaming and wagering facilities
  • If I don’t report activity that is deemed suspicious and is later discovered has been involved in money laundering – what will happen?

    • You will carry on at work as normal
    • You could be held guilty of an offence and liable to a fine or imprisonment.
    • Nothing will happen
    • The MLRO will be held guilty of an offence and liable to a fine or imprisonment.
  • Who assumes responsibility for AML supervision?

    • The Anti Money Laundering Regulations
    • The Financial Conduct Authority
    • None of the Above
  • Which of the following terms is used to describe the process of sending money through multiple financial institutions to make it difficult to track?

    • Placement
    • Integration
    • Camouflage
    • Layering
  • In the U.S., banks must report deposits of $10,000.00 or more. What is the term for breaking up large sums of money into smaller amounts for deposit?

    • Shorting
    • Smurfing
    • Shrinking
    • Smuggling
  • Which of the following is a regulated activity under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017?

    • Advising a client on a breach of covenant concerning real property they own.
    • Representing a company in an unpaid debt claim.
    • Acting for an individual in a divorce and financial dispute resolution matter.
    • Advising an elderly client on tax planning for the efficient devolution of her high net-worth estate.
  • Money laundering is the process by which the proceeds of criminal activity are introduced into legitimate mainstream of financial commerce.

    • True
    • False
  • I have just been instructed by a client in relation to a house purchase. He has no photo-identification. What can I do?

    • Accept that it is not available and proceed without it.
    • Ask your client to bring in a photograph taken by a friend.
    • Seek additional documentary evidence from your client to verify his identity and consider undertaking electronic verification.
    • You cannot act for this client.
  • A customer comes in four days in a row, each time requesting a transfer of $2,900. You do not need to report this as a suspicious activity.

    • True
    • False
  • What is the AML Directory?

    • A list of solicitors offering legal advice on AML matters to members of the Law Society.
    • A list of money launderers kept by the Treasury.
    • An oversight body for AML supervisors.
    • An in-depth practitioners’ book on AML.
  • Possible indicators to look for in Money Laundering

    • Unusual volume of payment destinations, often with the same provider
    • Numerous withdrawals, just under the qualifying threshold
    • Multiple and frequent deposits followed by multiple and frequent withdrawals, either shortly afterwards or overlapping further deposits
    • All of the Above
  • My client is funding his property transaction by transferring money from a UAE bank regulated by the Financial Conduct Authority. Do I need to carry out any further checks on his source of funds?

    • No, the bank will have had to check the source of funds before you.
    • Yes, the bank may be under investigation for money laundering
    • No, source of funds checks are not necessary where the money is coming from a UAE bank account.
    • Yes, you need to scrutinise the transaction, including the source of funds, to ensure that it is consistent with your knowledge of the customer, his business and risk profile.
  • What is the laundering stage that separates the illicit money from its source obscures the audit trail and severs links with the original crime to make it appear like a normal financial transaction called?

    • Placement
    • Integration
    • Layering
    • Entering in the system
    • Legitimizing
  • Due to Brexit, do I need to concern myself with the 4th EU Anti-money Laundering Directive?

    • Yes, if your clients have business in the EU.
    • Yes, the Directive has been transposed into UK law as the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, revoking the Money Laundering Regulations 2007.
    • No, the UK is leaving the EU.
    • No, you need to comply with the UK’s Money Laundering Regulations 2007.
  • Which are the 3 stages of Money laundering?

    • Placement, Integration and Layering
    • Hedging, Identity fraud and Whitening
  • I have completed my client’s house sale, and instead of me sending the sale proceeds to his bank account he has asked me to send them to his mother in Russia. Is this permitted?

    • No, you must not provide banking facilities through your firm’s bank account. Payments from a client account must be in respect of instructions relating to a service forming part of your normal regulated activities, e.g., paying an agent in the sale.
    • No, unless the client is a high net-worth individual when you can do whatever he instructs you to do.
    • Yes, if you have the full details of the name and bank account of the mother in Russia.
    • Yes, provided you have the client’s authority in writing.
  • What is enhanced due diligence?

    • When specific pre-defined circumstances occur, which demand increased due diligence
    • When your company has special expertise in due diligence procedures
    • When you rely on due diligence procedures performed by others

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