AML Exam (CE)
6. Tony demarco successfully laundered $75,000 of drug money, In doing so, he went through each of the following processes EXCEPT a. placement b. replacement c. layering d. integration
b
8. On which of the following products should an insurance company focus its AML monitoring activities on? a. automobile insurance b. homeowners insurance c. annuities d. health insurance
c
7. The ABC insurance company sells all of the following products. which of these products must be covered in the insurance company's AML training program? a. term life insurance b. group life insurance c. structured settlements d. Annuities
C
11. If Juan Clemens is the AML compliance officer of the ABC insurance company, then all of the following statements about him are correct EXCEPT. a. he is knowledgeable about money laundering issues and risks b. he administers ABC's AML program c. he graduated from the NAIC's compliance officer training school. d. he ensures appropriate company employees are trained about ABC's AML program.
D.
10. To adminster and maintain its aml program, which of the following should the ABC insurance company hire? a. a compliance officer b. a senior insurance agent c. a quality improvement director d. an agency manager
a
1. The information an insurance agent must collect for customer identification purposes depends on a. the amount of money the customer is worth. b. The amount of money the customer spends. c. whether the insurance product the customer is purchasing at a low or high risk for money laundering. d. the size and resources of the insurance company.
c. Whether the insurance product under consideration is at a low or high risk for money laundering
2. When Tom Jensin mixes illicit and legal funds and then uses the money to purchase a new car, he is practicing. a. rebating b. diversification c. integration d. smurfing
c. integration
5. What has Marcela Benson done when she transfer the benefit of her insurance policy to an apparently unrelated third party? a. performed an unlawful transfer b. performed a transfer by fault c. performed a secondary transfer d. raised a red flag for suspicious activity
d.
13. Julianne Thompson is money laundering when she a. buys an annuity with money she obtained selling drugs b. divorces her spouse c. robs a bank d. hides money in a basement
A.
14. Roger Carlson is money laundering when he performs each of the following activities EXCEPT a. making dirty money appear clean b. converting an annuity into an insurance policy c. making illegally obtained money appear legitimate d. converting cash from a crime into money that appears to come fro ma legal source.
B
15. Jamal Trenton, an insurance agent, performs all of the following functions in his insurance company's AML program EXCEPT a. reports violations of policy to the AML compliance officer. b. informs clients when their suspicious activities has been reported. c. helps the AML compliance officer gather information d. helps identify high-risk, businesses, and locations.
B
12. Because Seth Williams is known to engage in illegal activities, his name can be found on the OFAC's list of a. block suspects b. specially designated nationals and blocked persons c. suspicious individuals d. persons to watch
B.
9. Which of the following components of an insurance company's AML program will best teach insurance agents how to recognize high-risk accounts and suspicious account activity a. program audit b. training program c. compliance officer d. program policies
b
3. When a client gives an insurance agent $14,000 in cash for an insurance transaction, the agent is obligated to a. consult with a lawyer b. file a CTR c. call the police d. do nothing
b. file a CTR
4. Federal staff have surveyed the ABC insurance company and determined that it is in compliance with the USA PATRIOT act of 2001 because it has all of the following Except. a. a customer identification and verification program b. a suspicious activity monitoring and reporting system c. a fire safety committee d. an employee training program.
d. an employee training program