AML Certification Practice

Which of the following laws made money laundering a crime?

MLCA

Which of the following is not a common element in money laundering schemes?

A bank account with consistently routine activity

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

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

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

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

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

Mixing illicit And legal funds to purchase a new car is an example of

Integration

Securities firms are most often used by money launderers to

Layer transactions

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

Which of the following is the most dangerous stuff in the money laundering process?

Placement

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

Placement, layering, integration

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

The USA patriot act associated money laundering with which of the following for the first time?

Terrorism