IT- The Bank Secrecy Act and Other Legislation
Amy, as the AML compliance officer of ABC securities, is required to trace the source of all funds belonging to foreign persons or institutions due to what...
A primary money laundering concern has been identified.
When BOB is opening an account for a new customer, the LEAST important guideline under the company's AML program would be...
Knowing the client's highest level of education.
The largest threat to anti-money laundering efforts is...
Technological advances
Brittany is an agent of an insurance company. When she executes a transaction for a new client she should be aware of all of the following EXCEPT...
The number of the clients' dependents.
Under the Joint rule, Sarah, who is the anti-money laundering program compliance officer for a securities brokerage firm, is required to collect and retain certain information on all fund transfers greater than...
3,000; The Joint Rule requires each firm involved in a fund transfer greater than $3,000 to collect and retain certain information regarding that transfer.
Joyce is the anti-money laundering compliance officer for an insurance agency. She is aware of a suspicious activity, but does not yet know the identity of a person conducting a suspicious activity. What is the maximum amount of time Joyce has to file an SAR?
60 days.
Paula engages in an electronic transaction via an encrypted card that has a monetary value and is tracked by a micro chip. This transaction is known as...
A Cyber payment. A cyber payment is an electronic transaction via the internet or an encrypted card (Smart card) that has a monetary value that is tracked by a microchip.
As the AML compliance manager for a brokerage firm, Joan must be constantly alert to possible layering transactions. All of these are examples of layering transactions EXCEPT...
A customer makes a cash deposit of $9,500 to avoid the necessity of a CTR
XYZ Securities is required to trace the source of all of the funds belonging to foreign persons or institutions when...
A primary money laundering concern has been identified. They're not required to trace any source unless their given a reason to do so.
Jeff is an insurance agent and should be concerned when all of these occur EXCEPT...
A regular client pays an insurance premium with cash.
As an anti-money laundering compliance officer, Mary, must be on the watch for all of these potential elements in money laundering schemes, EXCEPT...
A securities account with consistently routine activity. This doesn't raise a red flag, so why would Mary have to watch out for it?
The compliance officer manager of a brokerage firm must be sure that the firm complies with the Travel Rule for what type of transaction...
An external transfer; External transfers are, by nature, subject to both the Joint and Travel rules.
The KAP Brokerage Firm executes several wire transfers. It must be sure to comply the Joint Rule for...
Both internal and external transfers.
Toby is an insurance agent with the LMN Insurance company. To comply with the anti-money laundering "know your customer" policy, Toby is expected to do all of the typically expected securities EXCEPT...
Ensure that the recommendations he makes for his customers are suitable.
Michael, the AML compliance officer for an insurance company observes unusual activity or behavior. Which of the following are TRUE...
Further investigation may be required...
What financial institution is required to inform customers of its privacy policies?
Gramm-Leach Bliley Act; It contains provisions that require a financial institution to inform customers about its privacy policies. It also permits banks and other companies to run banking, securities, and insurance operations under one roof.
Gregg, an insurance agent. Suspects that a client has engaged in a suspicious activity. All of the following are true EXCEPT...
Gregg must file an SAR. He does not have too since he is an insurance agent.
Gregg, an insurance agent, suspects that a client has engaged in a transaction that appears to violate money laundering laws. The Annunzio-Wylie Money Laundering Act of 1992 requires which of the following...
Gregg's financial institution (Not Gregg HIMSELF) must file an SAR.
The ABC Insurance company has appointed James as its anti-money laundering compliance officer. James ensures that ABC company files SARs because it issues all insurance contracts EXCEPT...
Group Annuity contracts.
What is an example that can be seen as a suspicious activity for Money Laundering?
John makes a large deposit into an annuity contract with a wire transfer.
Matthew has engaged in a variety of illegal activities and is attempting to launder funds from the illegal activities. Matthew is MOST likely to use a securities firm when...
Layering transactions; because funds can be moved between a wide variety of securities. funds can also be moved in seconds, from one financial institution to another.
Money launderers often view the securities industry as a prime target for money laundering because of all of the following EXCEPT...
Most securities firms do not accept cash...
What institution maintains a list of specially designed nationals?
OFAC;
Susan is the anti-money laundering compliance officer for LMN insurance company. She is examining what she thinks may be money laundering activity and would like to investigate further, but is afraid she may violate the Gramm-Leach-Bliley Act of 1999. Upon further examination, Susan finds that the Gramm-Leach-Bliley Act does all of the following EXCEPT...
Prevent financial institutions from sharing information regarding terrorist acts involving money laundering activity.
Robert is a personal banker for the ABC Bank Trust Company. He finds it difficult to fulfill his responsibilities for enforcement of anti-money laundering controls for all of the following reasons EXCEPT...
Private banking operations provide all-inclusive money management.
The XYZ Insurance company is about to establish a formal anti-money laundering program. The USA PATRIOT Act requires XYZ's program to include all of the following essential components EXCEPT...
Program Coordination with FATF.
The compliance manager of a brokerage firm observes a transfer of $4,000 from John's account to his brother Bill's account within the same firm. Which rule applies to this transfer?
The Joint rule; Because it is an internal transfer within the same firm... it is considered a Joint rule. (Not the travel rule)
Emily is a registered representative with the ABC Brokerage firm. She notices that a client has been transferring funds from various sources into the clients account. Emily should...
Report this to her anti-money laundering compliance officer as this may be an indication that the client is engaged in the money laundering layering phase.
Patrick, who is the AML compliance officer for the ABC insurance company, must comply with the annunzio-Wylie Money laundering Act if 1992 which...
Requires financial institutions to file SARs on any transaction that appears to violate money laundering laws.
Rolfe has a client who has made a series of small deposits small enough to avoid a mandatory CTR or an SAR, but Rolfe still has a concern. What is Rolfe's client engaging in?
Smurfing. Structured transactions, sometimes known as smurfing, occur when transactions are structured in amounts less than the $10,000 automatic reporting requirement of the BSA.
Tha AML compliance manager must ensure her firm which is acting as an intermediary transmitter, passes along information to the next financial institution, under what rule...
The Travel Rule; The Travel Rule requires non-bank financial institutions that act as transmitters' financial institutions and intermediary financial institutions in transmittals of funds greater than 3,000 to include all information received about such wire transfers in their retransmittal of the wire order.
The insurance industry is susceptible to money laundering for all of the following reasons EXCEPT...
The industry is subject to centralized regulation.
As the anti-money laundering compliance officer for the All Risk Insurance Company, Elizabeth knows she needs to be cognizant of all of the following activities, EXCEPT...
The potential of fraudulent claims.
