Anti Money Laundering

Question 1

If a staff member of a financial services organisation were to be accused of arranging under the proceeds of crime act 2002 it could mean they:

A) had knowlingly become involved in the process of converting criminal property

B) personally owned the proceeds of criminal property

C) had unwittingly failed to report a potentially suspicious activity

D) had personally used the proceeds of criminal activity

Answer 1

A) had knowlingly become involved in the process of converting criminal property

Question 2

Transferring criminally obtained money through different accounts is an offence only if the funds derive from drug dealing or terrorist activity, true ir false?

Answer 2

False

Transferring, disguising, concealing, converting any criminally obtained funds is an offence

Question 3

The FATFs role is to establish a broad policy framework at an international level for the prevention of money laundering, true or false?

Answer 3

True

Question 4

In order to be required to report a transaction to the money laundering reporting officer, a member of staff first needs to:

A) be certain the person is involved in money laundering

B) advise the person they may be investigated

C) review the circumstances of the case with other experienced staff members

D) have reasonable grounds for believing that a person is involved in money laundering

Answer 4

D) have reasonable grounds for believing that a person is involved in money laundering

Question 5

A bank cashier notices that a customer is paying an unusually large sum of money into theor account in cash. The cashier advises the customer that they regard the transaction as suspicious and calls a supervisor to discuss the matter further with the customer. What offence has the cashier potentially committed?

A) data protection breach

B) tipping off

C) failure to disclose

D) arranging

Answer 5

B) tipping off

Question 6

When accepting an investment into a savings account at what transaction value will it become necessary to obtain evidence of the customers identity?

A) €15,000

B) €10,000

C) £10,000

D) £15,000

Answer 6

A) €15,000

Question 7

The EU Fourth Money Laundering Directive contains a provision requiring member states to maintain a register of the beneficial owners of legal enitities. A beneficial owner is one who controls what percentage of a legal entity?

Answer 7

25%

Question 8

A new client has invested £12,000 in the forms of stocks and shares in an ISA product offered by Forward bank. The bank did not carry out any client identification procedures. This is most likely to have been because:

A) investments into ISAs are exempt from money laundering identification requirements

B) the client is only temporarily resident in the UK

C) investment amounts of less than £15,000 are exempt from money-laundering identification requirements

D) the client was introduced by an intermediary who obtained the necessary evidence

Answer 8

D) the client was introduced by an intermediary who obtained the necessary evidence

Question 9

If a money laundering reporting officer (MRLO) suspects a case of attempted money laundering, to whom must this be reported?

Answer 9

The national crime agency

Question 10

A firms senior management is required to request a report from the money laundering reporting officer at least once a year. What action should they take upon receiving the report?

A) forward it to the FCA

B) include the total numbers of SARs in the firms annual report

C) review and if necessary improve the firms processes and training

D) retain the report indefinitely

Answer 10

C) review and if necessary improve the firms processes and training