Module 6: Anti-Money Laundering

Question 1

You are an investment manager in an investment firm. You have a client on whom your firm’s due diligence has been satisfactorily carried out. They transfer funds to their account with you, from another institution. A few days later the client advises that they wish to cash in their investment, even though they will suffer a loss, and that they wish to transfer the funds to another institution. You report your concerns to your Compliance Office. Which of the stages of money laundering is this potentially an example of?

A. Layering
B. Placement
C. Integration
D. Recycling

Answer 1

A. Layering

Question 2

Which of the following is a covered person/institution supervised or regulated by the SEC?

A. Pre-need companies
B. Investment advisor, agent or consultant
C. Issuer of proprietary shares or non-proprietary shares
D. None of the above

Answer 2

B. Investment advisor, agent or consultant

Question 3

The following are considered unlawful activities under AMLA except:

A. Rape
B. Kidnapping for ransom
C. Swindling
D. Robbery

Answer 3

A. Rape

Question 4

You are a business relationship manager of a covered person. A prospective new client approaches you to establish a business relationship. The client advises that she has an urgent transaction to undertake while you are carrying out the identification procedure. The client cannot produce satisfactory proof of identification. What must you do?

A. Undertake the transaction, but make a suspicious transaction report to the AMLC
B. Establish the relationship and hope satisfactory identification documents are provided
C. Refuse to proceed and submit a suspicious transaction report to the AMLC
D. None of the above

Answer 4

C. Refuse to proceed and submit a suspicious transaction report to the AMLC

Question 5

Which of the following would require covered persons to conduct enhanced due diligence?

A. When the prospective client has a romantic relationship with a Cabinet secretary
B. When the prospective client is a government institution
C. When the prospective client is a public company that is subject to regulatory disclosure requirements
D. When the prospective client is an employee of a private corporation in the Philippines

Answer 5

A. When the prospective client has a romantic relationship with a Cabinet secretary

Question 6

Who is the head of AMLC Secretariat?

A. Executive Director
B. Non-executive Director
C. Corporate Secretary
D. None of the above

Answer 6

A. Executive Director