AML Certification Practice
Which of the following is responsible for administration of the bank secrecy act?
The financial crimes enforcement network
Which of the following activities is not a structured transaction?
$12,000 cash deposit
Whatever it is what institution blocks transactions, it must report the blocking to OFAC within how many days of the block?
10
Each suspicious activity report (SAR) must be filed within how many days of the initial determination for the necessity of filing the report?
30 days
The Bank Secrecy Act established all of the following EXCEPT
40 recommendations for countermeasures against money laundering
The bank secrecy act specifies that each film must maintain suspicious activity reports (SARs) for a period of how many years from the date of filing?
5 years
Which of the following is not a common element in money laundering schemes?
A bank account with consistently routine activity
Financial Institutions are required to trace the source of all funds belonging to foreign persons or institutions when
A primary money laundering concern has been identified
Which of the following are consequences of money laundering?
All of these
A currency transaction report is for reporting
Any currency transaction greater than $10,000
Financial professionals should consider all of the following in any transaction with a client EXCEPT
Number of dependents
The first multi-agency money laundering task force ever assembled was for an investigation known as
Operation Greenback
Which of the following ranks as the largest non-drug money laundering investigation conducted by US customs?
Operation risky business
Which of the following sequences accurately reflects the money laundering process?
Placement, layering, integration
Which of the following is NOT a step in the money laundering process?
Replacement
The USA patriot act associated money laundering with which of the following for the first time?
Terrorism
Which of the following Acts gives the Secretary of Treasury and the Attorney General power to issue a summons or subpoena for records of a foreign financial institution that maintains a correspondent account in the United States?
USA PATRIOT Act of 2001
Structures transactions occur when transactions are made in amounts less than
$10,000
The banks secrecy act requires financial institutions to file reports for currency transactions greater than
$10,000
How many recommendations were developed by FATF?
40
The transfer of the benefit of insurance contract to in apparently unrelated third-party is known as
A red flag for suspicious activity
All of the following are minimum standards a financial institution must follow to verify the identify of customers at account opening EXCEPT to
Check the person's name against the FATF list
All the following are descriptions of the money laundering process except
Converting annuity into an insurance policy
Which of the following best describes the money laundering process
Converting money illegally obtained into seemingly legit resources
The bank secrecy act requires every financial institution to file which of the following reports of IRS form 4789 for each cash transaction that exceeds $10,000?
Currency Transaction Report (CTR)
Which of the following represents principles of action that countries can implement according to their particular circumstances and constitutional frameworks and were designed to have universal application?
FATF's Forty Recommendations
Treasury Department that provides U.S. policy markers with strategic analysis of domestic and worldwide money laundering developments, trends, and patterns?
FinCEN
A series of bank to bank funds transfers to hide a paper trail is an example of
Integration
Mixing illicit And legal funds to purchase a new car is an example of
Integration
Which of the following requires enhanced recordkeeping related to transmittals of funds? A) transmittal rule B) recording rule C) joint rule D) Benson mandate
Joint Rule
Securities firms are most often used by money launderers to
Layer transactions
Using multiple complex financial transactions to help secure the source of the legal funds is called
Layering
Which of the following laws made money laundering a crime?
MLCA
Which of the following maintains a list of known or suspected terrorist organizations?
OFAC
Which of the following is money laundering?
Paying for an annuity with money made from selling drugs
Mixing laundered funds with money from legitimate commercial activities to buy a small printing business is an example of
Placement
Smurfing occurs during
Placement
Which of the following is the most dangerous stuff in the money laundering process?
Placement
All of the following are essential components of a formal Anti-Money laundering program under the USA PATRIOT Act EXCEPT a(n)
Program coordinator with FATF
Structured transactions are also known as
Smurfing
Which of the following terms describes the division of large cash deposits into smaller amounts to avoid reporting requirements?
Smurfing
Which of the following is the biggest threat to anti-money laundering efforts?
Technology advances