anti money-laundering for insurance 2nd edition

the program created to verify the identity average customer or member of the time in account is opened is called what?

CIP

Mason, a registered representative Koba is processing a new investment account for a business. He has verified the identity of the person opening the account. Which of the following would not be a reasonable Edition step to take?

FBI background check

which of the following does not describe a high-risk account?

an account open with $50 and little anticipated activity

which of the following crimes will not give rise to funds that may be the subject of money laundering?

loan to a child

what types of life insurance policies in annuities could be excluded from the definition of account of purposes of life insurance companies in CIP

I got this one wrong. It is not variable annuities

which of the following is an example of money laundering

a drug dealer receives cash from the sale of controlled substances and deposits the money in bank checking's account.

which of the following suspicious activities requires immediate notification of law enforcement authorities?

a violation of federal law that I could gates to $25,000 or more, regardless of whether I suspect can be identified.

what does the SAR Safe Harbor protect against?

customer lawsuits against financial institution and beer employees for violation of privacy

Robin, life insurance agent, second application for single premium life insurance policy. What information should she be sure either in order to ask in compliance with the USA Patriot Act?

customers name

what must a financial institutions CIP required to do, after the customers identity has been verified?

determine whether the customer appears on any list of known suspected terrorists or terrorist organizations

which is not important change made by the US Patriot Act

expanded the definition of financial institution

Midwest Mutual life has been found guilty of money laundering. What is the maximum fine that may be divided against it?

finds not less than 2 times the amount of the laundering transactions

which insurance products are considered high risk for money laundering

individual cash value life insurance and annuity

which of the following is not a likely implication of money laundering

life insurance companies in foreign countries will be able to charge lower premiums in US insurers

what does section 326 the USA Patriot Act require of certain financial institutions

section 326 requires and development and implementation of a customer identification program

Raymond has been charged with developing and ofac compliance program for his financial institution. In addition to the Sig nating in ofac compliance officer, what is another requirement the program was Meet?

Implement appropriate training in communication regarding 05 compliance

Wesley summer a notorious dealer of illegal arms, uses $100,000 of proceeds from a large cell by a single premium life insurance policy. Which of the following statements accurately reflects the application of the law to his purchase?

both the currency transaction reporting requirements of the PSA in the provisions of the US Patriot Act apply to this transaction

what tool can be used to establish a baseline about typical customer behavior and also serve as a benchmark against which suspicious activity can be spotting?

customer profile

Tony, a broker-dealer, thanks I'm going to shove his clients trust to steal money from their account. He redeposits is telling funds in a money management account throughout the country under fake identities. Of what type of money laundering might he be guilty of

financial transaction money laundering

a large financial institution with offices throughout the world has failed to comply with certain anti-money laundering laws. Which of the following would not be a sanction of fact May apply?

fine of $10

a customer whose residence in New Jersey is seeking to purchase an annuity in Florida. At a minimum, what is the best response from insurance agent?

proceed with the application, so long as the customer can provide adequate verification of his or her identity.

the treasury Department direct that any shoes AML must be based on assessment of risks of which of the following

product, customers, distribution channels, location.

what important action should a financial institution take prior to verifying a customer identity under its CIP?

provide adequate customer notice

John, an account representative is working with a client to open a new account. The customer refuses to provide an address other than the PO Box. What should John do

refuse to open the account

Jay is in charge of administering his company AML program under the USA Patriot Act. what must the program provide for on an ongoing basis?

the programs must provide training on an ongoing basis

what investment features of life insurance products besides stored Value Place them at risk for money laundering?

transferability

Wylie, I'm registered representative, recently opened an investment account for bro, who is listed on the specially designated Nationals list. What crime come i n e has Riley committed.

money laundering

Lester, an employee with a financial institution, received a letter from a customer's attorney requesting information concerning Sr Lester filed with respect to the customer. What's your Lester do

neither confirm nor deny that I saw was filed and notify his company's regulator and fencing of the request

which of the following laws first defined money laundering as a crime and imposed penalty for laundering activities?

the money laundering Control Act of 1986

who has primary responsibility for enforcement of the BSA in the USA Patriot Act?

the treasury Department

Casey has detected that a customer has to be gone too systemically transfer funds from her account to individuals in foreign countries that appear to have no business a personal connection to the customer how long does Casey have to file a sar

30 calendar days

Devon is charged with developing his employers USA Patriot Act compliance program. How long was the program provide for retention of SARS and supporting documentation in the company's files?

5 Years From filling out the SAR

Britain internal policies, procedures, and controls. A dis ignited compliance officer, and I'm going employee training program, and an independent audit function to test the programs are minimum requirements for a financial institutions ------ plan.

AML

Ellen, a drug trafficker and US citizen, makes a wire transfer of the proceeds of drug sales to an offshore account. Which of the following is accurate?

Ellen has probably engage in money laundering

Joey, are you a citizen, volunteers to act as treasurer for his church. One of his task is to deposit weekly collections into a bank checking account. Another task is to pay vendors. In need of a few extra dollars and recognizing that over side of his activity is Lacs, Joey establishes a champ business called trash collectors, Inc. Trash collectors invoices the church $500 monthly for services he does not really perform. Joe is too so owner of the trash collector and is the sole signatory on the business checking account stablish with a local bank into which the church check is deposited. Which of the following accurately reflects Joey situation

Joey has probably engaged in both in bad element and money laundering

Al's job requires him to create an AML compliance program for an insurance company under the USA Patriot Act. Why should he first step be?

access the money laundering risks associated with the insurance particular product, clients, distribution channels, and locations.

what is the purpose served by filing a sar

alert Regulators in fencing to possible criminal actions, including money laundering

in dealing with an individual customers accounts, what is an additional step in account representative can take to verify the customers identity?

all the customers employer in confirm the information provided

Lindsay, a registered representative, has asked her broker-dealers compliance officer under what circumstances in existing customer may be excluded from CIP coverage. Why should I compliance officer tell Lindsey.

existing customers may be excluded from the definition of customer, provided the financial institution has a reasonable belief that he knows the true identity of the person

Loretta enters a bank and makes a wire transfer of currency from an account in the US to an account in the Cayman Islands. What does the bank secrecy act require the bank to do

file a cross-border transaction report

who is SAR Safe Harbor intended to protect

financial institutions in their employees

East overshoe life has been found guilty of failing to meet basic BSA record-keeping, reporting, and older anti-money laundering requirements. What type of fines may be imposed?

fines of up to $500,000 per violation

Katrina has been assigned the task of developing in a ML Flynn for a local bank. at a minimum, what must the plan cover?

got this one wrong, it is not FINRA.

what least must customers be checked against to determine whether there are terrorists or affiliated with terrorists

got this one wrong. It said that no list actually exist but I didn't see that as an answer.

Suzanne, Nikon representative, is working with a customer who wishes to open a new account. The customers sole source of identification is written statement form from her landlord. What action should sue saying take with respect to this customer's account

refuse to open the account

what types of additional do diligence are appropriate person high-risk accounts?

requiring references from another financial institution to verify identity

wray, an employee at a financial institution, visited her co-workers and he's home the other evening. She couldn't help but notice that although she send Sam hold comparable positions in probably learn similar amount, his lifestyle is much more extravagant than hers. He not only leaves in a penthouse suite, he drives a new luxury out of mobile, and has a large Wine Vault populated with expensive wines. When she asked how he could afford his lifestyle, Sam Shrugged and said it's sure not because I'm a trust fund baby. Based on what she's learned about Sam, why should wray do?

she should file a sar

when it comes to criminal money laundering under the mlca, the prosecution does not need to be proved.

that I specific individual or entity was harmed in the act