AML - General

Question 1

In what circumstances are accountants required to report large cash transactions of $10,000 or more or international wire transfers of $1,000 or more from October 1 2018?

Answer 1

When they are a reporting entity under AML.

Question 2

Where is the Financial Intelligence Unit located in New Zealand?

Answer 2

Within the New Zealand police.

Question 3

What acronym is used for the Financial Intelligence Unit?

Answer 3

FIU

Question 4

What does the FIU provide?

Answer 4

Financial Intelligence

Question 5

The FIU provides financial intelligence in relation to suspicious transactions, money laundering, the financing of terrorism and what?

Answer 5

Other serious offences.

Question 6

The FIU provides financial intelligence in relation to suspicious transactions, money laundering, other serious offences and what?

Answer 6

Financing of terrorism.

Question 7

The FIU provides financial intelligence in relation to suspicious transactions, financing of terrorism and other serious offences and what?

Answer 7

Money Laundering

Question 8

The FIU provides financial intelligence in relation to financing of terrorism and other serious offences and what?

Answer 8

Suspicious Transactions

Question 9

Where are the functions and powers of the FIU set out?

Answer 9

in the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act).

Question 10

What does the FIU help the New Zealand government fulfill its obligation to?

Answer 10

The Inter-Governmental Financial Action Task Force

Question 11

Other than the inter-governmental Financial Action Task Force and the prevention and detection of serious crime, what else does the FIU assist the New Zealand government to fulfill its obligation to?

Answer 11

The Government’s organised crime strategy.

Question 12

The FIU collects and collates information provided by whom?

Answer 12

External parties and reporting entities.

Question 13

Who does the FIU especially get information from?

Answer 13

The banks and other financial institutions

Question 14

After the required analysis, intelligence products are sent to other investigative and intelligence units within who?

Answer 14

Police, sector supervisors, domestic partner agencies and to relevant international agencies.

Question 15

Other than Suspicious transaction reports, suspicious property reports and border cash reports, what else is the main source of information for the FIU?

Answer 15

Prescribed transaction reports

Question 16

When did the FIU start collecting prescribed transaction reports from?

Answer 16

November 2017

Question 17

Other than Suspicious transaction reports, suspicious property reports and prescribed transaction reports, where else does what else is the main source of information for the FIU?

Answer 17

Border cash reports

Question 18

Other than Suspicious transaction reports, prescribed transaction reports and border cash reports, where else does what else is the main source of information for the FIU?

Answer 18

Suspicious property reports

Question 19

Other than Suspicious property reports, prescribed transaction reports and border cash reports, where else does what else is the main source of information for the FIU?

Answer 19

Suspicious transaction reports

Question 20

Other than the Reserve Bank of New Zealand and the Financial Markets Authority, who else monitors the reporting entities within different sectors?

Answer 20

The Department of Internal Affairs.

Question 21

What is a word which means a classification according to general type, especially in archaeology, psychology, or the social sciences?

Answer 21

Typology

Question 22

What is a typology?

Answer 22

A classification according to general type, especially in archaeology, psychology, or the social sciences.

Question 23

What typologies does the FIU produce?

Answer 23

Typologies of money laundering and financing of terrorism transactions.

Question 24

What are the typologies produced by the FIU, produced in?

Answer 24

A quarterly report.

Question 25

What is the Egmont Group?

Answer 25

A united body of 155 Financial Intelligence Units (FIUs) from across the world.

Question 26

What does the Egmont Group provide?

Answer 26

A platform for the secure exchange of expertise and financial intelligence to combat money laundering and terrorist financing.

Question 27

When was the Egmont Group formed?

Answer 27

In 1995

Question 28

How did the Egmont Group get its name?

Answer 28

From the Egmont Arenberg Palace in Brussels, where the first meeting took place.

Question 29

What forms the bulk of the FIU?

Answer 29

The analytics team.

Question 30

What does the NIA stand for under AML?

Answer 30

National Intelligence Application

Question 31

Who uses the NIA under AML?

Answer 31

The police

Question 32

How do the police use the NIA?

Answer 32

To determine details such as whether previous criminal history.

Question 33

What is a STR under AML?

Answer 33

Suspicious transaction report

Question 34

What is the acronym for Suspicious Transaction Report?

Answer 34

STR

Question 35

What is a section 143A under AML?

Answer 35

An official request for information.

Question 36

What is an official request for information under AML called?

Answer 36

A section 143A request.

Question 37

Where are cash dogs used?

Answer 37

At the airport.

Question 38

What are cash dogs used for?

Answer 38

Sniffing out people carrying large amounts of cash.

Question 39

Are trusts considered a risk under AML?

Answer 39

Yes

Question 40

When are trusts especially considered a risk under AML?

Answer 40

When there are overseas people involved.

Question 41

What is a SAR under AML?

Answer 41

Suspicious Activity Report?

Question 42

What is a PTR under AML?

Answer 42

A prescribed transaction report.

Question 43

What are accountants allowed to do with respect to their clients? With respect to AML.

Answer 43

Ask them questions.

Question 44

What are accountants not allowed to do with respect to their clients with respect to AML?

Answer 44

Tell them they’re going to file a report.

Question 45

Why is an accountant telling their clients that they are going to file a report, illegal with respect to the AML?

Answer 45

Its considered to be ‘tipping off’.

Question 46

What is an example of a legitimate question for accountants to ask their clients under AML?

Answer 46

What is the reason for their structure.

Question 47

What is the TSA?

Answer 47

Terrorism Suppression Act.

Question 48

What does ‘layering’ mean with regards to the AML?

Answer 48

The middle stages of money laundering.

Question 49

What is a word for the middle stages of money laundering?

Answer 49

Layering

Question 50

What is an AML / CFT Programme under section 5 of the AML / CFT Act?

Answer 50

A programme established under section 56(1) of the AML.

Question 51

What are AML Requirements under section 5 of the AML / CFT Act?

Answer 51

Requirements set out in Part 2 of the AML Act.

Question 52

What is an AML /CFT Supervisor in relation to a reporting entity?

Answer 52

The person referred to in section 130(1) who is responsible for supervising the reporting entity under parts 3 and 4.

Question 53

What is the first type of reporting entity under section 5 of the AML / CFT Act?

Answer 53

A Casino

Question 54

What is the second type of reporting entity under section 5 of the AML / CFT Act?

Answer 54

A designated non-financial business or profession.

Question 55

What is the third type of reporting entity under section 5 of the AML / CFT Act?

Answer 55

A financial institution.

Question 56

What is the fourth type of reporting entity under section 5 of the AML / CFT Act?

Answer 56

A high-value dealer.

Question 57

What is the fifth type of reporting entity under section 5 of the AML / CFT Act?

Answer 57

The New Zealand Racing Board

Question 58

Under part b) part i) of the definition of reporting entity, what type of person does a reporting entity also include?

Answer 58

A person or class of persons declared by regulations to be a reporting entity for the purposes of the AML Act.

Question 59

Under part b) part ii) of the definition of reporting entity, what type of person does a reporting entity also include?

Answer 59

Any other person who is required by any other enactment to comply with the AML Act as if it were a reporting entity.

Question 60

Under part c) of the definition of reporting entity, what type of person or class of persons is excluded from being a reporting entity?

Answer 60

Any person or class of persons declared by regulations not to be a reporting entity for the purposes of the AML Act.

Question 61

What is an acronym which describes the types of businesses and professionals potentially considered reporting entities under AIM because of being considered a non-financial business or profession conducting activities in the ordinary course of business which come within the requirements of a reporting entity for AIM?

Answer 61

‘LCIART’

Question 62

What is a potential method of remembering the acronym ‘LCIART referring to types of business coming within the requirements for AML’?

Answer 62

Large camels in a railway train

Question 63

What does the ‘L’ stand for in LCIART?

Answer 63

Law Firm

Question 64

What does the ‘C’ stand for in LCIART?

Answer 64

Conveyancing Practitioner

Question 65

What does the ‘I’ stand for in LCIART?

Answer 65

Incorporated Conveyancing Firm

Question 66

What does the ‘A’ stand for in LCIART?

Answer 66

Accounting Practice

Question 67

What does the ‘R’ stand for in LCIART?

Answer 67

Real Estate Agents

Question 68

What does the ‘T’ stand for in LCIART?

Answer 68

Trust and Company Service Provider

Question 69

What acronym stands for the type of activities in the ordinary course of business which come within the requirements of AML?

Answer 69

FNRMRA

Question 70

What is a potential method of remembering the acronym FNRMRA the type of activities in the ordinary course of business which come within the requirements of AML?

Answer 70

Friendly new rabbits munching red asparagus.

Question 71

What does the ‘F’ stand for in FNRMRA?

Answer 71

Formation agents

Question 72

What does the ‘N’ stand for in FNRMRA?

Answer 72

Nominee director. Nominee shareholder or trustee.

Question 73

What does the first ‘R’ stand for in FNRMRA?

Answer 73

Registered Office

Question 74

What does the ‘M’ stand for in FNRMRA?

Answer 74

Managing Client Funds

Question 75

What does the second ‘R’ stand for in FNRMRA?

Answer 75

Real Estate Agency Work

Question 76

What does the second ‘A’ stand for in FNRMRA?

Answer 76

Agent for Conveyancing

Question 77

When does providing a registered office or business address not fit within the types of businesses and professionals potentially considered reporting entities under AML?

Answer 77

When that registered office or business address is ancillary to the provision of other services not coming within the definition of the requirements for AML.

Question 78

What does managing client funds include and not include for the purposes of coming within AML?

Answer 78

It does not include sums paid as fees for professional services but does include managing of accounts, securities or other services.

Question 79

What acronym describes transactions which come within the definition of AML even if not in the ordinary course of business when performed by a designated no financial business or profession?

Answer 79

RTTT

Question 80

definition of AML even if not in the ordinary course of business when performed by a designated no financial business or profession?

Answer 80

Racing cars trailing touring trucks

Question 81

What does the ‘R’ stand for in the AML acronym RTTT?

Answer 81

Real estate transactions

Question 82

What does the first ‘T’ stand for in the AML acronym RTTT?

Answer 82

Transfer of beneficial interest in land or other real property.

Question 83

What does the second ‘T’ stand for in the AML acronym RTTT?

Answer 83

Transactions in relation to buying or selling a business.

Question 84

What does the third ‘T’ stand for in the AML acronym RTTT?

Answer 84

Transactions in relation to creating, operating and managing a legal person such as a company, and any other legal transaction.

Question 85

What AML typologies involving accountants are considered to be a major risk by the FIU with major consequences of an increase?

Answer 85

Shell companies, nominees, trusts, 3rd parties etc

Question 86

What is the first thing that accountants who are reporting entities required to do by 1 October 2018?

Answer 86

Appoint an AML / CFT Compliance Officer

Question 87

What is the second thing that accountants who are reporting entities required to do by 1 October 2018?

Answer 87

Produce a risk assessment.

Question 88

What is the second thing that accountants who are reporting entities required to do by 1 October 2018?.

Answer 88

Establish an AML/ EFT Programme

Question 89

What is the first thing that that accountants who are reporting entities required to do as part of operations after 1 October 2018?

Answer 89

Vet and train employees.

Question 90

What is the second thing that that accountants who are reporting entities required to do as part of operations after 1 October 2018?

Answer 90

Perform Customer Due Diligence.

Question 91

What is the third thing that that accountants who are reporting entities required to do as part of operations after 1 October 2018?

Answer 91

Get an independent audit of Risk Assessment and AML / CFT Programme every two years.

Question 92

What is the first thing that that accountants who are reporting entities required to do as part of reporting, after 1 October 2018?

Answer 92

Report suspicious activities and prescribed transactions.

Question 93

What is the second thing that that accountants who are reporting entities required to do as part of reporting, after 1 October 2018?

Answer 93

File an annual report

Question 94

What is the first reason it is necessary that AML applies to accountants?

Answer 94

Evidence based support from past and current cases.

Question 95

What is the second reason it is necessary that AML applies to accountants?

Answer 95

Professional facilitators are a significant feature of serious criminal offending.

Question 96

What is the third reason it is necessary that AML applies to accountants?

Answer 96

Professionals have vulnerabilities that criminals may take advantage of.

Question 97

Other than as a form of investment, how are houses used by organised crime?

Answer 97

As ‘grow houses’.

Question 98

What is required in this scenario?
An Accountant’s firm is the registered mailing and contact in New Zealand for:-
• Company ABC Limited based overseas in Panama;
• 4 directors;
• All directors are domiciled overseas.

Answer 98

• Do you know your Customer / client?
• Change in (Companies Act) legislation -requiring 1 director to reside in New Zealand unless he / she resides in Australia and is a director of a company incorporated in Australia.

Question 99

What is required in this scenario?
• You have received a sum of money from a client;
• The client asks you to transfer some or all of the money to a third party;
• You transfer from your account to a third party.

Answer 99

• Do you know the origins of these funds?

* Could you be inadvertently be drawn into a criminal matter.

Question 100

What acronym could be used with regards to AML and Shell Companies?

Answer 100

LAALCS

Question 101

How could the acronym LAALCS with regards to AML be remembered?

Answer 101

Large apes are launching coal ships.

Question 102

What does the first L stand for in the acronym LAALCS to do with Shell Companies?

Answer 102

Large number of companies registered with the same office address.

Question 103

What does the first A stand for in the acronym LAALCS to do with Shell Companies?

Answer 103

Address supplied is a “Virtual Office”.

Question 104

What does the second A stand for in the acronym LAALCS to do with Shell Companies?

Answer 104

Accounts / facilities opened / operated by company formation agents.

Question 105

What does the second L stand for in the acronym LAALCS to do with Shell Companies?

Answer 105

Lack of information regarding overseas directors / beneficiaries.

Question 106

What does the C stand for in the acronym LAALCS to do with Shell Companies?

Answer 106

Complex ownership structures.

Question 107

What does the S stand for in the acronym LAALCS to do with Shell Companies?

Answer 107

Structures where there is no apparent legitimate economic or other rationale.

Question 108

What is the 1st obligation under AML?

Answer 108

AML /CFT Risk Assessment

Question 109

What is the 2nd obligation under AML?

Answer 109

AML /CFT Compliance Programme

Question 110

What is the 3rd obligation under AML?

Answer 110

AML /CFT Annual Report

Question 111

What is the 4th obligation under AML?

Answer 111

Independent Audits

Question 112

What are 5 tools for conducting staff vetting?

Answer 112

• Police Check
• Reference Check
• Qualification Check
• Social Media Check
• Credit Check

Question 113

Where a higher level of risk is identified, what must be conducted?

Answer 113

Enhanced Customer due diligence

Question 114

When enhanced customer due diligence must be conducted, what needs to be collected?

Answer 114

Information relating to the source of funds and or wealth of the Customer.

Question 115

Once information has been collected as part of Customer due diligence, what must be done?

Answer 115

Reasonable steps must be taken to verify that information based on the level of risk identified for each Customer.

Question 116

When reasonable steps are taken to verify information collected as part of due diligence, what should those steps be based on?

Answer 116

The level of risk identified for each Customer.

Question 117

What is an acronym for Customer Due Diligence?

Answer 117

CDD

Question 118

What is Customer due diligence / CDD?

Answer 118

The process of verifying information supplied by Customers.

Question 119

What should be done with respect to enhanced CDD?

Answer 119

Customers requiring it should be identified and your staff should be made aware of these.

Question 120

Once Customers requiring enhanced CDD have been identified, what should be done with respect to your staff?

Answer 120

Your staff should be made aware of which Customers require enhanced CDD.

Question 121

What item is missing from this checklist?
Customer Checklist
1/ _______ or another vehicle for holding personal assets
2/ Foreign Politically Exposed Persons (PEPS) from a central watchlist.
3/ Non-NZ resident personnel from jurisdiction / country that has insufficient AML / CFT system in place.
4/ If a customer is known to come from a high-risk jurisdiction (known to deal in drugs / is corrupt or has ties to terrorism
5/ Entities with nominee shareholders or shares in bearer form.

Answer 121

Trusts

Question 122

What item is missing from this checklist?
Customer Checklist

1/ Trusts or another vehicle for ___________________
2/ Foreign Politically Exposed Persons (PEPS) from a central watchlist.
3/ Non-NZ resident personnel from jurisdiction / country that has insufficient AML / CFT system in place.
4/ If a customer is known to come from a high-risk jurisdiction (known to deal in drugs / is corrupt or has ties to terrorism
5/ Entities with nominee shareholders or shares in bearer form.

Answer 122

Holding personal assets

Question 123

What is an acronym for Politically Exposed Persons?

Answer 123

PEPS

Question 124

Where is information about Foreign Politically Exposed Persons (PEPS) obtained from?

Answer 124

A Central watchlist

Question 125

What item is missing from this checklist?
Customer Checklist
1/ Trusts or another vehicle for holding personal assets
2/ _____________________ from a central watchlist.
3/ Non-NZ resident personnel from jurisdiction / country that has insufficient AML / CFT systems in place.
4/ If a customer is known to come from a high-risk jurisdiction (known to deal in drugs / is corrupt or has ties to terrorism
5/ Entities with nominee shareholders or shares in bearer form.

Answer 125

Foreign Politically Exposed Persons (PEPS)

Question 126

What items are missing from this checklist?
Customer Checklist
1/ Trusts or another vehicle for holding personal assets
2/ Foreign Politically Exposed Persons (PEPS) from a central watchlist.
3/___________________ from jurisdiction / country that has ____________ in place.
4/ If a customer is known to come from a high-risk jurisdiction (known to deal in drugs / is corrupt or has ties to terrorism
5/ Entities with nominee shareholders or shares in bearer form.

Answer 126

Non-NZ resident personnel

has insufficient AML / CFT systems

Question 127

What is considered a high-risk jurisdiction under AML?

Answer 127

One where dealing in drugs / corruption / ties to terrorism are common

Question 128

What item is missing from this checklist?
Customer Checklist
1/ Trusts or another vehicle for holding personal assets
2/ Foreign Politically Exposed Persons (PEPS) from a central watchlist.
3/ Non NZ resident personnel from jurisdiction / country that has insufficient AML /CFT systems in place.
4/ __________________________________
5/ Entities with nominee shareholders or shares in bearer form.

Answer 128

If a customer is known to come from a high-risk jurisdiction (known to deal in drugs / is corrupt or has ties to terrorism

Question 129

What item is missing from this checklist?
Customer Checklist
1/ Trusts or another vehicle for holding personal assets
2/ Foreign Politically Exposed Persons (PEPS) from a central watchlist.
3/ Non NZ resident personnel from jurisdiction / country that has insufficient AML /CFT systems in place.
4/ If a customer is known to come from a high-risk jurisdiction (known to deal in drugs / is corrupt or has ties to terrorism
5/ Entities with _____________ or shares in bearer form.

Answer 129

Nominee shareholders

Question 130

What item is missing from this checklist?
Customer Checklist
1/ Trusts or another vehicle for holding personal assets
2/ Foreign Politically Exposed Persons (PEPS) from a central watchlist.
3/ Non NZ resident personnel from jurisdiction / country that has insufficient AML /CFT systems in place.
4/ If a customer is known to come from a high-risk jurisdiction (known to deal in drugs / is corrupt or has ties to terrorism
5/ Entities with nominee shareholders or__________________.

Answer 130

Shares in bearer form

Question 131

Other than for the 5 types of Customer identified, when else is enhanced CDD required?

Answer 131

When a Customer seeks to conduct a complex, unusually large or unusual pattern of transactions. With no apparent economic or lawful purpose. and in particular situations where your entity determines that the level of risk requires it.

Question 132

Where is information concerning whether a simplified CDD would be appropriate?

Answer 132

In the AML / CFT Act.

Question 133

Give examples of entities for whom a simplified CDD is permitted.

Answer 133

govt departments, public bodies, registered banks. Companies listed on the stock exchange

Question 134

Where does guidance come from for identifying suspicious activities with respect to AML /CFT?

Answer 134

Sector risk assessments and guidance material provided by the NZ FIU or supervisors

Question 135

What is the acronym used in some countries for ‘Know Your Customer’?

Answer 135

KYC

Question 136

What does the acronym CDD stand for?

Answer 136

Customer due diligence

Question 137

What type of persons is CDD always conducted on?

Answer 137

Natural Persons

Question 138

When verifying name, date of birth and residential address, what is required?

Answer 138

That original supporting documents are sighted and that a copy is signed and dated to evidence that verification has occurred.

Question 139

Sophie, an accountant is signing up a Customer, Alexander who needs assistance with the sale of his business.
To verify his name, date of birth and address details, Sophie asks for formal identification. Alexander shows his passport and a bank statement with his address.
What must Sophie look for to ensure that the bank statement is a valid form of identification?

Answer 139

The statement is less than 12 months old and shows a residential address (not a PO Box).

Question 140

What is a beneficial owner?

Answer 140

A person who owns and / or controls your customer

Question 141

Generally, what is the first element of being a beneficial owner?

Answer 141

Owns more than 25% of the Customer (There may be several who fall into this category).

Question 142

Generally, what is the second element of being a beneficial owner?

Answer 142

Has effective control over a Customer and acts on their behalf.

Question 143

Generally, what is the third element of being a beneficial owner?

Answer 143

On whose behalf a transaction is conducted.

Question 144

Other than non NZ-resident customer from a jurisdiction / country that ha insufficient AML /CFT systems or measures in place, what type of Customers are considered to be of a higher risk?

Answer 144

Foreign politically exposed persons (PEPS) from a central watch list.

Question 145

Other than PEPS, what type of Customer is considered to be of a higher risk?

Answer 145

Non NZ-resident customer from a jurisdiction / country that ha insufficient AML /CFT systems or measures in place.

Question 146

Other than PEPS and non NZ-resident customer from a jurisdiction / country that ha insufficient AML /CFT systems or measures in place, what types of Customer are considered to be of a higher risk?

Answer 146

Customers from a high risk jurisdiction / country (ie is known to deal in drugs, is corrupt or has ties to terrorism)

Question 147

Other than overseas Customers what types of entities are considered to e of higher risk?

Answer 147

Entities with nominee shareholders of shares in barer form.

Question 148

What is a term which means using family members or third parties?

Answer 148

fronting

Question 149

Which is the missing red flag for these general types of red flag?

1. _____________________________________________
2. Defensive stance to questioning or reluctance to provide CDD information including proof of income / wealth;
3. Unrealistic wealth compared to client profile;
4. Unusual business or transactions eg cash intensive businesses such as bars, restaurants and nightclubs;
5. Two or more persons with the same identification;
6. One person using multiple identification documents.

Answer 149

Customers using family members or third parties (otherwise known as fronting);

Question 150

Which is the missing red flag for these general types of red flag?

7. Customers using family members or third parties (otherwise known as fronting);
8. ____________________________________________
9. Unrealistic wealth compared to client profile;
10. Unusual business or transactions eg cash intensive businesses such as bars, restaurants and nightclubs;
11. Two or more persons with the same identification;
12. One person using multiple identification documents

Answer 150

Defensive stance to questioning or reluctance to provide CDD information including proof of income / wealth;

Question 151

Which is the missing red flag for these general types of red flag?

13. Customers using family members or third parties (otherwise known as fronting);
14. Defensive stance to questioning or reluctance to provide CDD information including proof of income / wealth;
15. ___________________________________
16. Unusual business or transactions eg cash intensive businesses such as bars, restaurants and nightclubs;
17. Two or more persons with the same identification;
18. One person using multiple identification documents.

Answer 151

Unrealistic wealth compared to client profile;

Question 152

Which is the missing red flag for these general types of red flag?

19. Customers using family members or third parties;
20. Defensive stance to questioning or reluctance to provide CDD information including proof of income / wealth;
21. Unrealistic wealth compared to client profile;
22. ___________________________
23. Two or more persons with the same identification;
24. One person using multiple identification documents.

Answer 152

Unusual business or transactions eg cash intensive businesses such as bars, restaurants and nightclubs;

Question 153

Which is the missing red flag for these general types of red flag?

25. Customers using family members or third parties;
26. Defensive stance to questioning or reluctance to provide CDD information including proof of income / wealth;
27. Unrealistic wealth compared to client profile;
28. Unusual business or transactions eg cash intensive businesses such as bars, restaurants and nightclubs;
29. ________________________________
30. One person using multiple identification documents.

Answer 153

Two or more persons with the same identification;

Question 154

Which is the missing red flag for these general types of red flag?

31. Customers using family members or third parties;
32. Defensive stance to questioning or reluctance to provide CDD information including proof of income / wealth;
33. Unrealistic wealth compared to client profile;
34. Unusual business or transactions eg cash intensive businesses such as bars, restaurants and nightclubs;
35. Two or more persons with the same identification;
36. ___________________________________________-.

Answer 154

One person using multiple identification documents.

Question 155

Which is the missing red flag for these types of red flag for accountants?

1. __________________________________________________-
2. Clients using professional business or trust account, where large deposits are made;
3. Funds are received from foreign jurisdictions particularly where there is no connection between the jurisdiction and the client;
4. Overseas instructions from a client for no economic reason;
5. Client is not concerned about the level of the fees;
6. Client has a fast-growing real estate portfolio;
7. Purchaser is a company with complicated beneficial ownership;
8. Purchase amount is unusual compared to the appraised value or the previous purchase amount;
9. Client appears to have cash substantially above their means;
10. Client uses a virtual office

Answer 155

Using an agent or intermediary without obvious reason;

Question 156

Which is the missing red flag for these types of red flag for accountants?

1. Using an agent or intermediary without obvious reason;
2. ____________________________________________
3. Funds are received from foreign jurisdictions particularly where there is no connection between the jurisdiction and the client;
4. Overseas instructions from a client for no economic reason;
5. Client is not concerned about the level of the fees;
6. Client has a fast-growing real estate portfolio;
7. Purchaser is a company with complicated beneficial ownership;
8. Purchase amount is unusual compared to the appraised value or the previous purchase amount;
9. Client appears to have cash substantially above their means;
10. Client uses a virtual office

Answer 156

Clients using professional business or trust account, where large deposits are made;

Question 157

Which is the missing red flag for these types of red flag for accountants?

1. Using an agent or intermediary without obvious reason;
2. Clients using professional business or trust account, where large deposits are made;
3. _____________________________________
4. Overseas instructions from a client for no economic reason;
5. Client is not concerned about the level of the fees;
6. Client has a fast-growing real estate portfolio;
7. Purchaser is a company with complicated beneficial ownership;
8. Purchase amount is unusual compared to the appraised value or the previous purchase amount;
9. Client appears to have cash substantially above their means;
10. Client uses a virtual office

Answer 157

Funds are received from foreign jurisdictions particularly where there is no connection between the jurisdiction and the client;

Question 158

Which is the missing red flag for these types of red flag for accountants?

1. Using an agent or intermediary without obvious reason;
2. Clients using professional business or trust account, where large deposits are made;
3. Funds are received from foreign jurisdictions particularly where there is no connection between the jurisdiction and the client;
4. ___________________________
5. Client is not concerned about the level of the fees;
6. Client has a fast-growing real estate portfolio;
7. Purchaser is a company with complicated beneficial ownership;
8. Purchase amount is unusual compared to the appraised value or the previous purchase amount;
9. Client appears to have cash substantially above their means;
10. Client uses a virtual office.

Answer 158

Overseas instructions from a client for no economic reason;

Question 159

Which is the missing red flag for these types of red flag for accountants?

1. Using an agent or intermediary without obvious reason;
2. Clients using professional business or trust account, where large deposits are made;
3. Funds are received from foreign jurisdictions particularly where there is no connection between the jurisdiction and the client;
4. Overseas instructions from a client for no economic reason;
5. ___________________________________
6. Client has a fast-growing real estate portfolio;
7. Purchaser is a company with complicated beneficial ownership;
8. Purchase amount is unusual compared to the appraised value or the previous purchase amount;
9. Client appears to have cash substantially above their means;
10. Client uses a virtual office

Answer 159

Client is not concerned about the level of the fees;

Question 160

Which is the missing red flag for these types of red flag for accountants?

1. Using an agent or intermediary without obvious reason;
2. Clients using professional business or trust account, where large deposits are made;
3. Funds are received from foreign jurisdictions particularly where there is no connection between the jurisdiction and the client;
4. Overseas instructions from a client for no economic reason;
5. Client is not concerned about the level of the fees;
6. ___________________________________
7. Purchaser is a company with complicated beneficial ownership;
8. Purchase amount is unusual compared to the appraised value or the previous purchase amount;
9. Client appears to have cash substantially above their means;
10. Client uses a virtual office

Answer 160

Client has a fast-growing real estate portfolio;

Question 161

Which is the missing red flag for these types of red flag for accountants?

1. Using an agent or intermediary without obvious reason;
2. Clients using professional business or trust account, where large deposits are made;
3. Funds are received from foreign jurisdictions particularly where there is no connection between the jurisdiction and the client;
4. Overseas instructions from a client for no economic reason;
5. Client is not concerned about the level of the fees;
6. Client has a fast-growing real estate portfolio;
7. _____________________________________
8. Purchase amount is unusual compared to the appraised value or the previous purchase amount;
9. Client appears to have cash substantially above their means;
10. Client uses a virtual office

Answer 161

Purchaser is a company with complicated beneficial ownership;

Question 162

Which is the missing red flag for these types of red flag for accountants?

1. Using an agent or intermediary without obvious reason;
2. Clients using professional business or trust account, where large deposits are made;
3. Funds are received from foreign jurisdictions particularly where there is no connection between the jurisdiction and the client;
4. Overseas instructions from a client for no economic reason;
5. Client is not concerned about the level of the fees;
6. Client has a fast-growing real estate portfolio;
7. Purchaser is a company with complicated beneficial ownership;
8. _____________________________________-
9. Client appears to have cash substantially above their means;
10. Client uses a virtual office

Answer 162

Purchase amount is unusual compared to the appraised value or the previous purchase amount;

Question 163

Which is the missing red flag for these types of red flag for accountants?

1. Using an agent or intermediary without obvious reason;
2. Clients using professional business or trust account, where large deposits are made;
3. Funds are received from foreign jurisdictions particularly where there is no connection between the jurisdiction and the client;
4. Overseas instructions from a client for no economic reason;
5. Client is not concerned about the level of the fees;
6. Client has a fast-growing real estate portfolio;
7. Purchaser is a company with complicated beneficial ownership;
8. Purchase amount is unusual compared to the appraised value or the previous purchase amount;
9. _________________________________
10. Client uses a virtual office

Answer 163

Client appears to have cash substantially above their means;

Question 164

Which is the missing red flag for these types of red flag for accountants?

1. Using an agent or intermediary without obvious reason;
2. Clients using professional business or trust account, where large deposits are made;
3. Funds are received from foreign jurisdictions particularly where there is no connection between the jurisdiction and the client;
4. Overseas instructions from a client for no economic reason;
5. Client is not concerned about the level of the fees;
6. Client has a fast-growing real estate portfolio;
7. Purchaser is a company with complicated beneficial ownership;
8. Purchase amount is unusual compared to the appraised value or the previous purchase amount;
9. Client appears to have cash substantially above their means;
10. ________________

Answer 164

Client uses a virtual office

Question 165

Which is the missing red flag for these types of red flag for lawyers?

1. __________________________________________–;
2. Client requests that deposited funds are sent to a third parties or parties rather than returned to the client;
3. Client avoids personal contact without good reason;
4. Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between parties;
5. Amount being deposited is large compared to the client’s modest income;
6. Surplus funds are deposited;
7. Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;
8. Client changes legal advisor a number of times in a short period of time for no apparent reason;
9. The purchase price is paid entirely in cash;
10. Client has no proper identification papers;
11. Purported legal documentation is too simple for the relevant transaction;
12. Client’s connection with the jurisdiction is unclear;
13. No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;
14. Urgency in getting the deal done

Answer 165

Once funds are received into a trust account, the transaction is aborted

Question 166

Which is the missing red flag for these types of red flag for lawyers?

1. Once funds are received into a trust account, the transaction is aborted;
2. _________________________________________;
3. Client avoids personal contact without good reason;
4. Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between parties;
5. Amount being deposited is large compared to the client’s modest income;
6. Surplus funds are deposited;
7. Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;
8. Client changes legal advisor a number of times in a short period of time for no apparent reason;
9. The purchase price is paid entirely in cash;
10. Client has no proper identification papers;
11. Purported legal documentation is too simple for the relevant transaction;
12. Client’s connection with the jurisdiction is unclear;
13. No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;
14. Urgency in getting the deal done

Answer 166

Client requests that deposited funds are sent to a third parties or parties rather than returned to the client

Question 167

Which is the missing red flag for these types of red flag for lawyers?

1. Once funds are received into a trust account, the transaction is aborted;
2. Client requests that deposited funds are sent to a third parties or parties rather than returned to the client;
3. ______________________________________-;
4. Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between parties;
5. Amount being deposited is large compared to the client’s modest income;
6. Surplus funds are deposited;
7. Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;
8. Client changes legal advisor a number of times in a short period of time for no apparent reason;
9. The purchase price is paid entirely in cash;
10. Client has no proper identification papers;
11. Purported legal documentation is too simple for the relevant transaction;
12. Client’s connection with the jurisdiction is unclear;
13. No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;
14. Urgency in getting the deal done

Answer 167

Client avoids personal contact without good reason

Question 168

Which is the missing red flag for these types of red flag for lawyers?

1. Once funds are received into a trust account, the transaction is aborted;
2. Client requests that deposited funds are sent to a third parties or parties rather than returned to the client;
3. Client avoids personal contact without good reason;
4. ______________________________________________________;
5. Amount being deposited is large compared to the client’s modest income;
6. Surplus funds are deposited;
7. Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;
8. Client changes legal advisor a number of times in a short period of time for no apparent reason;
9. The purchase price is paid entirely in cash;
10. Client has no proper identification papers;
11. Purported legal documentation is too simple for the relevant transaction;
12. Client’s connection with the jurisdiction is unclear;
13. No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;
14. Urgency in getting the deal done

Answer 168

Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between

Question 169

Which is the missing red flag for these types of red flag for lawyers?

1. Once funds are received into a trust account, the transaction is aborted;
2. Client requests that deposited funds are sent to a third parties or parties rather than returned to the client;
3. Client avoids personal contact without good reason;
4. Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between parties;
5. ______________________________________;
6. Surplus funds are deposited;
7. Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;
8. Client changes legal advisor a number of times in a short period of time for no apparent reason;
9. The purchase price is paid entirely in cash;
10. Client has no proper identification papers;
11. Purported legal documentation is too simple for the relevant transaction;
12. Client’s connection with the jurisdiction is unclear;
13. No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;
14. Urgency in getting the deal done

Answer 169

Amount being deposited is large compared to the client’s modest income

Question 170

Which is the missing red flag for these types of red flag for lawyers?

1. Once funds are received into a trust account, the transaction is aborted;
2. Client requests that deposited funds are sent to a third parties or parties rather than returned to the client;
3. Client avoids personal contact without good reason;
4. Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between parties;
5. Amount being deposited is large compared to the client’s modest income;
6. ____________________________;
7. Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;
8. Client changes legal advisor a number of times in a short period of time for no apparent reason;
9. The purchase price is paid entirely in cash;
10. Client has no proper identification papers;
11. Purported legal documentation is too simple for the relevant transaction;
12. Client’s connection with the jurisdiction is unclear;
13. No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;
14. Urgency in getting the deal done

Answer 170

Surplus funds are deposited

Question 171

Which is the missing red flag for these types of red flag for lawyers?

1. Once funds are received into a trust account, the transaction is aborted;
2. Client requests that deposited funds are sent to a third parties or parties rather than returned to the client;
3. Client avoids personal contact without good reason;
4. Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between parties;
5. Amount being deposited is large compared to the client’s modest income;
6. Surplus funds are deposited;
7. ________________________________________;
8. Client changes legal advisor a number of times in a short period of time for no apparent reason;
9. The purchase price is paid entirely in cash;
10. Client has no proper identification papers;
11. Purported legal documentation is too simple for the relevant transaction;
12. Client’s connection with the jurisdiction is unclear;
13. No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;
14. Urgency in getting the deal done

Answer 171

Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;

Question 172

Which is the missing red flag for these types of red flag for lawyers?

1. Once funds are received into a trust account, the transaction is aborted;
2. Client requests that deposited funds are sent to a third parties or parties rather than returned to the client;
3. Client avoids personal contact without good reason;
4. Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between parties;
5. Amount being deposited is large compared to the client’s modest income;
6. Surplus funds are deposited;
7. Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;
8. ___________________________________
9. The purchase price is paid entirely in cash;
10. Client has no proper identification papers;
11. Purported legal documentation is too simple for the relevant transaction;
12. Client’s connection with the jurisdiction is unclear;
13. No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;
14. Urgency in getting the deal done

Answer 172

Client changes legal advisor a number of times in a short period of time for no apparent reason

Question 173

Which is the missing red flag for these types of red flag for lawyers?

1. Once funds are received into a trust account, the transaction is aborted;
2. Client requests that deposited funds are sent to a third parties or parties rather than returned to the client;
3. Client avoids personal contact without good reason;
4. Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between parties;
5. Amount being deposited is large compared to the client’s modest income;
6. Surplus funds are deposited;
7. Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;
8. Client changes legal advisor a number of times in a short period of time for no apparent reason;
9. _______________________________;
10. Client has no proper identification papers;
11. Purported legal documentation is too simple for the relevant transaction;
12. Client’s connection with the jurisdiction is unclear;
13. No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;
14. Urgency in getting the deal done

Answer 173

The purchase price is paid entirely in cash

Question 174

Which is the missing red flag for these types of red flag for lawyers?

1. Once funds are received into a trust account, the transaction is aborted;
2. Client requests that deposited funds are sent to a third parties or parties rather than returned to the client;
3. Client avoids personal contact without good reason;
4. Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between parties;
5. Amount being deposited is large compared to the client’s modest income;
6. Surplus funds are deposited;
7. Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;
8. Client changes legal advisor a number of times in a short period of time for no apparent reason;
9. The purchase price is paid entirely in cash;
10. ________________________;
11. Purported legal documentation is too simple for the relevant transaction;
12. Client’s connection with the jurisdiction is unclear;
13. No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;
14. Urgency in getting the deal done

Answer 174

Client has no proper identification papers

Question 175

Which is the missing red flag for these types of red flag for lawyers?

1. Once funds are received into a trust account, the transaction is aborted;
2. Client requests that deposited funds are sent to a third parties or parties rather than returned to the client;
3. Client avoids personal contact without good reason;
4. Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between parties;
5. Amount being deposited is large compared to the client’s modest income;
6. Surplus funds are deposited;
7. Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;
8. Client changes legal advisor a number of times in a short period of time for no apparent reason;
9. The purchase price is paid entirely in cash;
10. Client has no proper identification papers;
11. ____________________________________;
12. Client’s connection with the jurisdiction is unclear;
13. No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;
14. Urgency in getting the deal done

Answer 175

Purported legal documentation is too simple for the relevant transaction

Question 176

Which is the missing red flag for these types of red flag for lawyers?

1. Once funds are received into a trust account, the transaction is aborted;
2. Client requests that deposited funds are sent to a third parties or parties rather than returned to the client;
3. Client avoids personal contact without good reason;
4. Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between parties;
5. Amount being deposited is large compared to the client’s modest income;
6. Surplus funds are deposited;
7. Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;
8. Client changes legal advisor a number of times in a short period of time for no apparent reason;
9. The purchase price is paid entirely in cash;
10. Client has no proper identification papers;
11. Purported legal documentation is too simple for the relevant transaction;
12. ________________________________;
13. No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;
14. Urgency in getting the deal done

Answer 176

Client’s connection with the jurisdiction is unclear;

Question 177

Which is the missing red flag for these types of red flag for lawyers?

15. Once funds are received into a trust account, the transaction is aborted;
16. Client requests that deposited funds are sent to a third parties or parties rather than returned to the client;
17. Client avoids personal contact without good reason;
18. Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between parties;
19. Amount being deposited is large compared to the client’s modest income;
20. Surplus funds are deposited;
21. Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;
22. Client changes legal advisor a number of times in a short period of time for no apparent reason;
23. The purchase price is paid entirely in cash;
24. Client has no proper identification papers;
25. Purported legal documentation is too simple for the relevant transaction;
26. Client’s connection with the jurisdiction is unclear;
27. _____________________________________
28. Urgency in getting the deal done

Answer 177

No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;

Question 178

Which is the missing red flag for these types of red flag for lawyers?

1. Once funds are received into a trust account, the transaction is aborted;
2. Client requests that deposited funds are sent to a third parties or parties rather than returned to the client;
3. Client avoids personal contact without good reason;
4. Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between parties;
5. Amount being deposited is large compared to the client’s modest income;
6. Surplus funds are deposited;
7. Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;
8. Client changes legal advisor a number of times in a short period of time for no apparent reason;
9. The purchase price is paid entirely in cash;
10. Client has no proper identification papers;
11. Purported legal documentation is too simple for the relevant transaction;
12. Client’s connection with the jurisdiction is unclear;
13. No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;
14. _________________________

Answer 178

Urgency in getting the deal done

Question 179

Give an example of what could be used to get money into the financial system, that many NZ families have.

Answer 179

A trust

Question 180

Phase two of the AML /CFT Act closes the ___________ available to money launders and helps to increase faith in NZ’s financial system

Answer 180

Loopholes

Question 181

Phase two of the AML /CFT Act closes the loopholes available to __________ and helps to increase faith in NZ’s financial system.

Answer 181

Money launderers

Question 182

Phase two of the AML /CFT Act closes the loopholes available to money launders and helps to increase _______ in NZ’s financial system.

Answer 182

Faith

Question 183

Phase two of the AML /CFT Act closes the loopholes available to money launders and helps to increase faith in NZ’s ______________

Answer 183

Financial system.

Question 184

What does FATF stand for with regards to AML /CFT?

Answer 184

Financial Action Task Force

Question 185

______________ was the first country to formalise measures in an effort to counter money laundering and financing of terrorism back in 2001. Australia and the UK followed shortly after. The Financial Action Task Force or FATF then asked NZ to conduct an extensive review of its financial systems. This review let to the AML Act 2009. This Act came into effect on 30 June 2013. Phase 2 of the legislation came into force on 10 August 2017 through the amendment bill capturing lawyers from 1 July 2018 and accountants from 1 October 2018.

Answer 185

The United States

Question 186

The United States was the first country to formalise measures in an effort to counter money laundering and financing of terrorism back in ______. Australia and the UK followed shortly after. The Financial Action Task Force or FATF then asked NZ to conduct an extensive review of its financial systems. This review let to the AML Act 2009. This Act came into effect on 30 June 2013. Phase 2 of the legislation came into force on 10 August 2017 through the amendment bill capturing lawyers from 1 July 2018 and accountants from 1 October 2018.

Answer 186

2001

Question 187

The United States was the first country to formalise measures in an effort to counter money laundering and financing of terrorism back in 2001. Australia and the UK followed shortly after. The _____________ or FATF then asked NZ to conduct an extensive review of its financial systems. This review let to the AML Act 2009. This Act came into effect on 30 June 2013. Phase 2 of the legislation came into force on 10 August 2017 through the amendment bill capturing lawyers from 1 July 2018 and accountants from 1 October 2018.

Answer 187

Financial Action Task Force

Question 188

The United States was the first country to formalise measures in an effort to counter money laundering and financing of terrorism back in 2001. Australia and the UK followed shortly after. The Financial Action Task Force or FATF then asked NZ to conduct an extensive review of its financial systems. This review let to __________. This Act came into effect on 30 June 2013. Phase 2 of the legislation came into force on 10 August 2017 through the amendment bill capturing lawyers from 1 July 2018 and accountants from 1 October 2018.

Answer 188

the AML Act 2009

Question 189

The United States was the first country to formalise measures in an effort to counter money laundering and financing of terrorism back in 2001. Australia and the UK followed shortly after. The Financial Action Task Force or FATF then asked NZ to conduct an extensive review of its financial systems. This review let to the AML Act 2009. This Act came into effect on _________. Phase 2 of the legislation came into force on 10 August 2017 through the amendment bill capturing lawyers from 1 July 2018 and accountants from 1 October 2018.

Answer 189

30 June 2013

Question 190

The United States was the first country to formalise measures in an effort to counter money laundering and financing of terrorism back in 2001. Australia and the UK followed shortly after. The Financial Action Task Force or FATF then asked NZ to conduct an extensive review of its financial systems. This review let to the AML Act 2009. This Act came into effect on 30 June 2013. _______ of the legislation came into force on 10 August 2017 through the amendment bill capturing lawyers from 1 July 2018 and accountants from 1 October 2018.

Answer 190

Phase 2

Question 191

The United States was the first country to formalise measures in an effort to counter money laundering and financing of terrorism back in 2001. Australia and the UK followed shortly after. The Financial Action Task Force or FATF then asked NZ to conduct an extensive review of its financial systems. This review let to the AML Act 2009. This Act came into effect on 30 June 2013. Phase 2 of the legislation came into force on __________ through the amendment bill capturing lawyers from 1 July 2018 and accountants from 1 October 2018.

Answer 191

10 August 2017

Question 192

The United States was the first country to formalise measures in an effort to counter money laundering and financing of terrorism back in 2001. Australia and the UK followed shortly after. The Financial Action Task Force or FATF then asked NZ to conduct an extensive review of its financial systems. This review let to the AML Act 2009. This Act came into effect on 30 June 2013. Phase 2 of the legislation came into force on 10 August 2017 through the ___________ capturing lawyers from 1 July 2018 and accountants from 1 October 2018.

Answer 192

amendment bill

Question 193

The United States was the first country to formalise measures in an effort to counter money laundering and financing of terrorism back in 2001. Australia and the UK followed shortly after. The Financial Action Task Force or FATF then asked NZ to conduct an extensive review of its financial systems. This review let to the AML Act 2009. This Act came into effect on 30 June 2013. Phase 2 of the legislation came into force on 10 August 2017 through the amendment bill capturing ________ from 1 July 2018 and accountants from 1 October 2018.

Answer 193

lawyers

Question 194

The United States was the first country to formalise measures in an effort to counter money laundering and financing of terrorism back in 2001. Australia and the UK followed shortly after. The Financial Action Task Force or FATF then asked NZ to conduct an extensive review of its financial systems. This review let to the AML Act 2009. This Act came into effect on 30 June 2013. Phase 2 of the legislation came into force on 10 August 2017 through the amendment bill capturing lawyers from __________ and accountants from 1 October 2018.

Answer 194

1 July 2018

Question 195

The United States was the first country to formalise measures in an effort to counter money laundering and financing of terrorism back in 2001. Australia and the UK followed shortly after. The Financial Action Task Force or FATF then asked NZ to conduct an extensive review of its financial systems. This review let to the AML Act 2009. This Act came into effect on 30 June 2013. Phase 2 of the legislation came into force on 10 August 2017 through the amendment bill capturing lawyers from 1 July 2018 and __________ from 1 October 2018.

Answer 195

Accountants

Question 196

The United States was the first country to formalise measures in an effort to counter money laundering and financing of terrorism back in 2001. Australia and the UK followed shortly after. The Financial Action Task Force or FATF then asked NZ to conduct an extensive review of its financial systems. This review let to the AML Act 2009. This Act came into effect on 30 June 2013. Phase 2 of the legislation came into force on 10 August 2017 through the amendment bill capturing lawyers from 1 July 2018 and accountants from ____________.

Answer 196

1 October 2018

Question 197

NZ’s govt introduced the AML Act to close money laundering loop holes and rebuild the countries financial reputation. The capture of lawyers and accountants under the Act ensures ongoing compliance with international recommendations and follows other jurisdictions such as the UK in capturing these professions.

Answer 197

money laundering

Question 198

NZ’s govt introduced the AML Act to close money laundering loop holes and rebuild the countries financial reputation. The capture of lawyers and accountants under the Act ensures ongoing compliance with international recommendations and follows other jurisdictions such as the _____ in capturing these professions.

Answer 198

UK

Question 199

NZ’s govt introduced the ________to close money laundering loop holes and rebuild the countries financial reputation. The capture of lawyers and accountants under the Act ensures ongoing compliance with international recommendations and follows other jurisdictions such as the UK in capturing these professions.

Answer 199

AML Act

Question 200

Under phase 1 there were approximately ________companies listed as reporting entities

Answer 200

2000

Question 201

Under phase 1 there were approximately 2000 companies listed as _____________

Answer 201

Reporting entities

Question 202

Estimated that under phase 2 an additional_____________ businesses will be reporting entities. All phase 2 entities are supervised by the DIA.

Answer 202

7000-8000

Question 203

Estimated that under phase 2 an additional 7000-8000 __________ will be reporting entities. All phase 2 entities are supervised by the DIA

Answer 203

businesses

Question 204

Estimated that under phase 2 an additional 7000-8000 businesses will be ___________. All phase 2 entities are supervised by the DIA.

Answer 204

reporting entities

Question 205

Estimated that under phase 2 an additional 7000-8000 businesses will be reporting entities. All phase 2 entities are supervised by the _______.

Answer 205

DIA

Question 206

The Act sets out ___________ that reporting entities must meet but leaves it to the entity to decide how these obligations will be met based on the level of risk an entity faces. To mitigate such risks an internal compliance officer must be assigned to meet the 4 obligations as shown on screen.

Answer 206

broad obligations

Question 207

The Act sets out broad obligations that reporting entities must meet but ____________ to decide how these obligations will be met based on the level of risk an entity faces. To mitigate such risks an internal compliance officer must be assigned to meet the 4 obligations as shown on screen.(attachment)

Answer 207

leaves it to the entity

Question 208

The Act sets out broad obligations that reporting entities must meet but leaves it to the entity to decide how these obligations will be met based on _____________ an entity faces. To mitigate such risks an internal compliance officer must be assigned to meet the 4 obligations as shown on screen.(

Answer 208

the level of risk

Question 209

The Act sets out broad obligations that reporting entities must meet but leaves it to the entity to decide how these obligations will be met based on the level of risk an entity faces. To mitigate such risks an __________________must be assigned to meet the 4 obligations as shown on screen

Answer 209

internal compliance officer

Question 210

A ____________is one of the first documents an entity must create. It needs to be a written document, and include the 3 components as listed on screen (What is a risk assessment slide - attachment)

Answer 210

risk assessment

Question 211

A ____________ outlines processes to minimize risks identified in the risk assessment. It must also include policies, procedures and controls for carrying out customer due diligence and for identifying suspicious activity, reporting and maintaining customer records. Further processes also need to be set out for staff training, staff vetting, governance, and assurance. These areas of compliance are explored in further detail in module 2.

Answer 211

compliance programme

Question 212

A compliance programme outlines processes to minimize risks identified in the risk assessment. It must also include ______________ for carrying out customer due diligence and for identifying suspicious activity, reporting and maintaining customer records. Further processes also need to be set out for staff training, staff vetting, governance, and assurance. These areas of compliance are explored in further detail in module 2.

Answer 212

policies, procedures and controls

Question 213

An _____________ filed each August must answer questions relating to 4 broad topics as listed on screen. The Information from the ________________s tells Supervisors how entities are managing in meeting requirement of the Act.

Answer 213

Annual Report

Question 214

An Annual Report filed each _____________ must answer questions relating to 4 broad topics as listed on screen. The Information from the Annual Reports tells Supervisors how entities are managing in meeting requirement of the Act.

Answer 214

August

Question 215

An Annual Report filed each August must answer questions relating to 4 broad topics as listed on screen. The Information from the Annual Reports tells ____________how entities are managing in meeting requirement of the Act.

Answer 215

Supervisors

Question 216

An independent audit must be carried out every two years or as requested by ___________. An auditor needs to have appropriate AML /CFT expertise and needs to be independent meaning someone who has not been involved in the development of your documentation

Answer 216

your supervisor

Question 217

An independent audit must be carried out every two years or as requested by your supervisor. An auditor needs to have ______________ and needs to be independent meaning someone who has not been involved in the development of your documentation.

Answer 217

appropriate AML /CFT expertise

Question 218

An independent audit must be carried out every two years or as requested by your supervisor. An auditor needs to have appropriate AML /CFT expertise and needs to be ________ meaning someone who has not been involved in the development of your documentation.

Answer 218

Independent

Question 219

An independent audit must be carried out every two years or as requested by your supervisor. An auditor needs to have appropriate AML /CFT expertise and needs to be independent meaning someone who has not been involved in the _____________________________.

Answer 219

development of your documentation

Question 220

What is the focus with respect to terrorist financing?

Answer 220

Preventing the criminal activity from occurring

Question 221

What was New Zealand removed from by the European Union in May 2012?

Answer 221

The banking and corporate “White List”.

Question 222

Why did the European Union remove New Zealand from the prestigious banking and corporate “White List” in May 2012?

Answer 222

Because of weak money laundering and terrorism financing controls.

Question 223

What was the case which led to New Zealand being removed from the prestigious banking and corporate “White List” in May 2012?

Answer 223

New Zealand was implicated in a firearms smuggling ring operated from Latvia. The Latvians manufactured then stored millions of dollars’ worth of firearms in Thailand, all through two registered New Zealand companies.

Question 224

New Zealand was implicated in a _____________ ring operated from Latvia. The Latvians manufactured then stored millions of dollars’ worth of firearms in Thailand, all through two registered New Zealand companies

Answer 224

firearms smuggling ring

Question 225

New Zealand was implicated in a firearms smuggling ring operated from _______. The _______ manufactured then stored millions of dollars’ worth of firearms in Thailand, all through two registered New Zealand companies

Answer 225

Latvia Latvians

Question 226

New Zealand was implicated in a firearms smuggling ring operated from Latvia. The Latvians manufactured then stored millions of dollars’ worth of firearms in _______, all through two registered New Zealand companies

Answer 226

Thailand

Question 227

New Zealand was implicated in a firearms smuggling ring operated from Latvia. The Latvians manufactured then stored millions of dollars’ worth of firearms in Thailand, all through two ____________.

Answer 227

registered New Zealand companies

Question 228

Money laundering occurs_________ the illegal funds have been generated.

Answer 228

after

Question 229

What is the first phase of money laundering?

Answer 229

Placement

Question 230

In what phase is it easiest to detect money laundering?

Answer 230

The placement phase

Question 231

Why is it easiest to detect money laundering during the placement phase?

Answer 231

The funds are closest to the source.

Question 232

What is the final phase of money laundering?

Answer 232

Integration

Question 233

What does integration involved when talking about money laundering?

Answer 233

Introducing the money into the economy so that it appears as a “clean” or legitimate source of funds.

Question 234

What is the first phase of an AML /CFT risk assessment?

Answer 234

Identify the risks faced by the entity.

Question 235

What is the second phase of an AML /CFT risk assessment?

Answer 235

Describe how the entity will ensure the Assessment remains current.

Question 236

What is the third phase of an AML /CFT risk assessment?

Answer 236

Enable the entity to determine the level of risk involved in relation to obligations under the Act.

Question 237

Criminals may seek to ___________ cash into the professional’s trust account.

Answer 237

place

Question 238

At the layering and integration stages, lawyers and accountants can provide the ___________ to create legal entities and arrangements to obscure ownership of assets and also assist in transferring those assets such as business and real estate.

Answer 238

“know-how”

Question 239

At the layering and integration stages, lawyers and accountants can provide the “know-how” to create legal entities and arrangements to _________ ownership of assets and also assist in transferring those assets such as business and real estate.

Answer 239

obscure

Question 240

At the layering and _________ stages, lawyers and accountants can provide the “know-how” to create legal entities and arrangements to obscure ownership of assets and also assist in transferring those assets such as business and real estate.

Answer 240

integration

Question 241

When is the AML /CFT annual Report required to be filed by?

Answer 241

31 August each year

Question 242

Who is responsible for filing the AML /CFT annual Report?

Answer 242

Internal Compliance Officer (attachment

Question 243

Must the AML /CFT Risk Assessment be written?

Answer 243

Yes

Question 244

Who must the AML /CFT Risk Assessment be maintained by?

Answer 244

A Compliance officer

Question 245

An AML / CFT compliance Programme must include:-
•	Customer due diligence (CDD);
•	Staff Training;
•	Staff Vetting;
•	A\_\_\_\_\_\_\_\_\_\_ m\_\_\_\_\_\_\_\_\_\_

Answer 245

Account Monitoring

Question 246

Must the AML /CFT Compliance Programme be written?

Answer 246

Yes

Question 247

Are client credit checks required as part of the AML /CFT Compliance Programme?

Answer 247

No

Question 248

CDD (for AML) is always conducted on n__________ p________

Answer 248

Natural persons

Question 249

______________ of interest in land or other real property

Answer 249

Transfer

Question 250

Transfer ____________ in land or other real property

Answer 250

of interest

Question 251

Transfer of interest _____________ or other real property

Answer 251

in land

Question 252

Transfer of _______________ or other real property

Answer 252

of interest in land

Question 253

Transfer of interest in land ____________________

Answer 253

or other real property