Chapter 7: The Prevention and Suppression of Money Laundering and Terrorist Financing Laws Flashcards
Who appoints the assistant compliance and compliance manager?
Board of Directors
Give two examples of transactions that should arise suspicion of money laundering.
- Wire transfer from outside the country (initial deposit)
* Large cash transaction (initial deposit)
For how long do banks need to keep client and transaction information following the end of their relationship?
5 years
Who is the designated person of MOKAS who shall provide further information of a reported suspicious transaction?
Compliance AML officer
To which customers may a bank apply a simplified due diligence?
- Public authorities of EEA countries.
* Listed companies in an EU stock exchange.
To which customers may a bank apply an enhanced due diligence?
Applied to high risk customers:
• Non face to face customers
• Politically exposed persons
• Customers from countries who inadequately apply FATF recommendations.
Which due diligence measures must be taken to customers from countries which inadequately apply financial action task recommendations?
Enhanced due diligence.
Which forms can money laundering take?
Fraud, theft, tax evasion.
What does a risk-based approach in AML mean?
A risk-based approach is typically sees as being more cost effective and promoting the prioritization of efforts.
Which are the steps of Money Laundering Process?
- Placement: Introduction of the money into the financial system
- Layering: Moving the money around.
- Integration: The money is regarded as legitimate funds that are integrated into the financial system.
If a person has applied for a bank account far away from his residence address, is this considered as money laundering violation or that the person is considered as high risk?
The client is considered high risk.
What is the first thing that compliance function is responsible for?
For the reparation of the risk management procedures manual covering the risk that the organization faces regarding money laundering and terrorist financing.
Where are suspicious transactions reported?
Both internally and to MOKAS.
What is the fine for failing to comply with this Law?
CySEC may impose an administrative fine of up to 1.000.000 euros and a further fine of 1.000 euros for every day that failure continues.
Which records are included in the list of customers that the compliance has to prepare?
- Name of customer
- Their account numbers
- Date of the start of relationship.
