Private Banking

Question 1

“concentration” or internal non-client

accounts, what revision were made to this in 2001

Answer 1

prohibition use of concentration accounts. It stated that banks should forbid the use of such internal
accounts in a manner that would prevent officials from appropriately monitoring movements of
client funds.

Question 2

What did the Principles of Private Banking

Answer 2

CARRD.
AML Training, Retention of relevant documents, Deviations from policy,Creation of an anti-money laundering department and an AML policy, Reporting to management of money laundering issues.

Question 3

When do Client from Private banks require greater scrutiny

Answer 3

DIEO

Information gained from monitoring their activities.
• External inquiries.
• Derogatory information such as negative news reporting.
• Other factors that may expose the bank to reputation risk.

Question 4

Per the principle, which situation demands EDD

Answer 4

Politically exposed persons,
Persons residing in and/or having funds from high-risk countries,
Persons involved in types of “economic or business activities or sectors known to be susceptible
to money laundering.”
Credible source says that particular countries have inadequate anti-money laundering standards or representing high-
risk for crime and corruption.”

Question 5

Why was this Principle released

Answer 5

make

it harder for corrupt people to deposit their ill-gotten gains in the world’s banking system

Question 6

what is the need to identify beneficial owner

Answer 6

need to identify the

beneficial owner of funds “for all accounts” when that person is someone other than the client,

Question 7

what des the priciple sates about money managers

Answer 7

urge private bankers to perform due diligence on “money managers and similar intermediaries”
to determine that the middlemen have a “satisfactory” due diligence process for their clients or a
regulatory obligation to conduct such due diligence.

Question 8

Who approve all new clients and accounts.

Answer 8

The principles recommend that “at least one

person other than the private banker” should approve all new clients and accounts.

Question 9

when was published Wolfsberg Anti-Money Laundering Principles for Private Banking

Answer 9

was published in October 2000

and was revised in May 2002 and again in June 2012