|Exam Name||:||Certified Anti-Money Laundering Specialist (6th edition)|
|Questions and Answers||:||150 Q & A|
|Updated On||:||Click to Check Update|
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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.)
A list of all the customers of the correspondent bank
A list of the types of businesses served by the correspondent bank
Information relating to the foreign bank’s anti-money laundering program
The identity of 10% owners of the correspondent bank, unless it is publicly traded
What is an example of the integration stage of money laundering involving a bank or another deposit-taking institution?
Depositing illicit funds into an account set up for a front company
Directing third parties to exchange illicit cash for negotiable instruments
Wiring illicit funds from an account at one bank to an account at another bank
Using illicit funds that had previously been deposited to purchase a luxury vehicle
Which aspect of the USA PATRIOT Act impacts foreign financial institutions?
Requiring enhanced due diligence for foreign shell banks
Expanding sanctions requirements to a U.S. financial institution’s foreign branches
Expanding the anti-money laundering program requirements to all foreign financial institutions
Providing authority to impose special measures on institutions that are of primary money-laundering concern
The USA PATRIOT Act requires United States (U.S.) financial institutions to collect certain information from non-U.S. banks that hold a correspondent account. Which two pieces of information must a non-U.S. bank provide to its U.S. correspondent to enable them to comply with this requirement? (Choose two.)
The name and address of all shell banks the bank maintains accounts for
The name and address of all beneficial owners who own 25% or more of the bank
Prompt notice of any suspicious activity it detects on any customer who uses the correspondent account
The name and address of a U.S. person who is authorized to receive service of legal process for the bank
What are two legal risks of having inadequate privacy policies and procedures? (Choose two.)
Industry of regulatory sanctions
Charges of deceptive business practices
Higher marketing and public relations costs
A customer opens a corporate account with a broker-dealer on behalf of several beneficial owners, with a stated long-term investment goal. The customer deposits
$25.5 million into the account and three days later transfers $5 million to an overseas bank. Shortly thereafter, the customer begins making numerous purchases of pesos. The compliance officer receives a query regarding the movement of funds. Within a month of account opening, the customer depletes the account.
Which two red flags should prompt the firm’s compliance officer to take action? (Choose two.)
The new account deposit is $25.5 million
A corporate account is opened on behalf of several beneficial owners
The compliance officer receives the query regarding the movement of funds
The customer’s stated investment goal is not reflective of account activity
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?
Allow for freezing assets of non-profit organizations
Require all non-profit organizations to register with the country’s financial intelligence unit
Ensure non-profit organizations cannot be used to conceal or obscure the diversion of funds intended for legitimate purposes to terrorists’ organizations
Create laws that forbid non-profit organizations from completing cross-border transactions without first running them through known terrorist data bases
An employee hears a colleague on the telephone with a customer giving advice on how to ensure that a suspicious transaction report will not be filed as a result of a future transaction.
What action should the employee take?
Report the conversation to the local police
Report the conversation to the compliance officer
Tell the colleague that it is against policy to give such advice
Ignore the situation because the colleague is the relationship manager for that customer
A government has instituted 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?
Change procedures to require that the necessary information is obtained
Change procedures and systems as necessary and provide employee training
Send a notice to customers asking them to provide the necessary information
Change systems to ensure the required information is automatically obtained from all customers
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?
Directing the remediation of the deficiency in a timely manner
Developing procedures to provide sufficient risk-based documentation for clearing alerts
Providing training to the alert clearing department on the importance of effective alert clearing
Validating the successful remediation of the issue once management indicates the issue is resolved