AML

who maintains a list of high-risk or noncooperative countries and territories due to a lack of AML/CFT measures

FATF

Which of the following is NOT a basic requirement for anti-money laundering programs?

Compliance with FATF's Nine Special Recommendations on Terrorist Financing

The insurance industry has high levels of suspicious activity reporting.

False

Which of the following is the international standard for combating money laundering program

The FATF's Forty Recommendations

Placement is the first and most dangerous step for the launderer in the money laundering process

True

Which of the following is NOT a core component of the AML program requirement?

Membership in the FATF

whose regulations specify which accounts and transactions are subject to economic sanctions?

OFAC

Depositing illicit money in a financial institution is an example of

placement

AML programs must focus on covered insurance products because

they are likely to present a higher degree of risk for money laundering

Which of the following statements best describes the money laundering process?

illegal money is converted to seemingly legal money

Integration occurs when

illegal money is mixed with legitimate business earnings

The money laundering control act made money laundering a criminal activity

true

A currency transaction report (form 8300) captures all of the following information except

whether or not the cash was obtained from illegal activities

A suspicious activity report (SAR) must be filed on any transaction that involves at least how much in funds or other assets?

$5,000

Real or personal property purchased with laundered money is subject to?

both government seizure and forfeiture

What primary factor determines what information must be collected about a policy or contract owner for identification purposes?

whether the insurance product under consideration is at a low or high risk for money laundering

when does an insurance company particularly rely on an insurance agent to collect customer information?

At the point of sale

Which of the following is Not true about a red flag suspicious activity?

Automatically requires the filing of a SAR

the bank secrecy act brought all financial institutions under its regulations

False

Who determines which methods of payment are acceptable for the purpose of insurance policies?

Insurance company issuing the policy

Which stage of the money laundering process involves carrying out a series of financial transactions to hide the illicit source of the funds?

Layering

Because of easy access, online insurance sales are a target for money laundering

True

The insurance industry is most vulnerable to money laundering during the layering and integration stages of the money laundering cycle

True

Regulators recognize that there cannot be a one-size-fits-all AML program for all insurance companies for all of the following reasons except

there are uniform methods of payment

The main forces behind AML compliance efforts are regulatory requirements and reputational risk.

True

the use of viatical settlements for money laundering purposes requires the use of a fronting person - one with a critical illness

True

Integration involves putting dirty money through a series of complex financial transactions to hide the trail leading to the crime

False

Why are agents and brokers not individually or independently required to create their own anti-money laundering programs?

insurers are in the best position to maintain AML programs

The bank secrecy act of 1970 encourages an insurer to report any activity that appears to violate the law, if the amount of the transaction is greater than

none of these

all of the following are failures to comply with bsa requirements except

failure to verify identifying information through primary sources

Why is it necessary to monitor wire transfers from one country to another country

the transfer ensures that the insurance company does not accept or send funds to an OFAC-blocked party

Which of the following is NOT an element of a customer identification program (CIP)

criminal background check and fingerprinting

Agents should collect all of the following types of information about a potential client except

personal and professional references

Which of the following is NOT a reason why a financial institution would have a know your customer program?

to determine whether or not its program meets the requirements of the bank secrecy act