AML Review Test

Money laundering is estimated to amount to how much of the world's gross domestic product?

2 and 5%

Which of the following forms does a US citizen have to file for having a foreign bank account with a balance of $10,000 or more?

FBAR

Which of the following is NOT a function of the Financial Action Task Force?

Administer the Bank Secrecy Act

Carol works in the insurance agency. Carol is subject to the training and additional provisions of the USA PATRIOT Act and AML training due to the nature or the relationship she has with her company. Carol is most likely which of the following?

Broker

An insurance company's customer identification program must include all of the following except

FATF certification

The insurance industry is most vulnerable to money laundering during which of the following phases or the money laundering process?

Integration and layering

Which of the following acts requires regulators to enhance examination procedures and upgrade examiner training to improve the identification of money laundering schemes in financial institutions?

Money Laundering Suppression Act

Which of the following is an office within Treasury's Office of Enforcement that administers and enforces US sanction policies against targeted foreign countries, individuals, and organizations that sponsor terrorism and international narcotics traffickers?

OFAC

Which of the following is the international standard for combating money laundering activities?

The 40 Recommendations

The insurance industry is susceptible to money laundering for all of the following reasons EXCEPT

anti-money laundering regulations are too vague

When a financial institution finds out one of its customers is listed on the Lists of Known or Suspected Terrorists, it must

freeze the customer's assets and block transactions with the customer

All of the following statements about an insurance company's AML training program are correct EXCEPT the training program

must include a segment on FATF

The most dangerous step in the money laundering process is

placement

All of the following are key requirements for the internal compliance officer position EXCEPT

state licensure

All of the following statements about the independent audit of an insurance company's AML program are correct EXCEPT

the AML compliance officer should conduct the program audit

An insurance company's customer identification program must include all of the following EXCEPT

FATF certification

All of the following are essential elements of an insurance company's anti-money laundering program EXCEPT

a quality improvement program

All of the following statements about an insurance company's anti-money laundering program are correct EXCEPT the program must

comply with NAIC's model regulation for anti-money laundering programs

Which of the following components of an AML program is intended to test the effectiveness of the program?

Audit

The AML regulations provide protection from liability for the filing of suspicious transactions and for not disclosing such a filing.

True

Which of the following organization represents insurance regulatory authorities and promotes cooperation among insurance regulators and sets international standards for insurance supervision?

The International Association of Insurance Supervisors

The first known case of money laundering in the insurance industry was reported in

2002

All of the following are descriptive of an AML program compliance officer EXCEPT

graduate of FinCEN's AML Compliance Officer Program