Test #1-#25

The first known case of money laundering in the insurance industry was reported in?

2002

Financial institutions are required to trace the source of all funds belonging to a foreign persons or institutions when

A primary money laundering concern has been identified

Combating money laundry and became a compelling priority for financial institutions on?

December 7, 1941

All of the following are descriptive of the anti-money laundering program required by the regulations except

One size fits all

Which of the following is included in the definition of covered product?

an annuity contract, other than a group annuity contract

Under the USA patriot act of 2001, insurance companies are required to implement all of the following except

an ethical practice surveillance program

All of the following are descriptive of an AML program compliance officer except

graduate of FinCEN's AML Compliance officer program

Mr. Robinson is money laundering when he

pays for an annuity with money made from selling drugs

Red flags alert and ensure or an agent to money laundering risks associated with

potential and existing customers

Which of the following organizations developed by the Forty recommendations?

FATF

Who maintains a list of high risk and non-cooperative countries and territories due to lack of affective a ML/CFT system

FATF

An insurance companies customer identification program must include all of the following except

FATF certification

Which of the following sequences accurately reflects the money laundering process?

Placement, Layering, Integration

When financial institution blocks transactions, it must report the blocking to OSAC within how many days of the block?

10 days

The person who violates bank secrecy act regulations while violating other laws in the United States is subject to a fine up to

500,000

The following sets of the framework for universal AML efforts?

FATFs Forty recommendations

Which of the following organizations has the right to unfreeze the assets of specifically designated nationals?

OFAC

All of the following statements about suspicious activity reports are correct EXCEPT

a suspicious activity report must be filed when a transaction is designed to evade up the requirements of the Bank Secrecy Act

The first step in insurance company should take in establishing an anti-money laundering program is to

conduct a risk assessment

Which of the following methods of payment is NOT considered a high risk for being suspectible to money laundering activities

personal checks made payable to the insurer

When Mr. Bensone mixes laundered funds with money from legitimate commercial activities and buys a small printing business he is practicing

placement

Which of the following describes the vision of large cash deposits into smaller amounts to avoid reporting requirements?

smurfing

Many of the SARS filed by insurance companies are due to

suspicious methods of payment