Topic 23 Flashcards
Anti-money-laundering
Why was the Financial Action Task Force set up?
To:
a. advise the FCA on matters relating to money laundering.
b. co-ordinate the international fight against money laundering.
c. ensure that financial services are available to everyone.
d. reduce the risk of insider dealing and market manipulation.
b. co-ordinate the international fight against money laundering.
Why might money-laundering regulations create financial exclusion?
Because:
a. certain non-residents cannot be offered banking facilities.
b. undischarged bankrupt customers find it hard to open bank accounts.
c. financial organisations are wary of opening bank accounts with cash deposits.
d. not everyone can provide the necessary identification.
d. not everyone can provide the necessary identification.
An adviser suspects a customer may be money laundering.
The adviser is required to:
a. discuss their suspicions with the customer initially.
b. monitor the customer’s activities themselves.
c. report their suspicions to the firm’s money laundering reporting officer.
d. report their suspicions to the National Crime Agency.
c. report their suspicions to the firm’s money laundering reporting officer.
What is the main reason why the senior management of an authorised firm must obtain an annual report from its money laundering reporting officer (MLRO)?
a. So that they can comply with regulations in the Financial Services and Markets Act.
b. So that they comply with the Proceeds of Crime Act.
c. To monitor activities and report suspicions.
d. To review any problems the firm has experienced and strengthen controls.
d. To review any problems the firm has experienced and strengthen controls.
Paul was prosecuted under the Proceeds of Crime Act 2002 and received the maximum sentence of five years in prison and a fine.
This means that he must have been convicted of which money-laundering offence?
a. Acquiring.
b. Arranging.
c. Concealing.
d. Tipping off.
d. Tipping off.
What maximum prison sentence may apply to an individual convicted of a bribery offence?
a. 3 years.
b. 5 years.
c. 10 years.
d. 14 years.
c. 10 years.
Customer due diligence does not need to be undertaken when:
a. a customer opens a new account.
b. a customer undertakes a transaction exceeding €15,000.
c. a new life policy is started.
d. an existing customer makes a cash deposit of £1,000 after selling his car.
d. an existing customer makes a cash deposit of £1,000 after selling his car.
Staff training on anti-money-laundering must cover all of the following requirements except:
a. how to liaise with the National Crime Agency.
b. the law relating to anti-money-laundering.
c. the firm’s anti-money-laundering procedures.
d. the responsibilities of the firm’s money laundering reporting officer (MLRO).
a. how to liaise with the National Crime Agency.
Which of the following actions by a bank employee would constitute ‘tipping off’ under the Proceeds of Crime Act 2002?
a. Advising a money laundering reporting officer of suspicious activity.
b. Disclosing to a customer that they may be subject to an investigation.
c. Providing evidence of a customer transaction to a police investigation.
d. Reporting procedural failures to the bank’s senior management.
b. Disclosing to a customer that they may be subject to an investigation.
The maximum penalty in the UK for an individual convicted of a bribery offence, is:
a. a fine of up to £50,000 and imprisonment of up to five years.
b. an unlimited fine and imprisonment of up to five years.
c. a fine of up to £100,000 and imprisonment of up to ten years.
d. an unlimited fine and imprisonment of up to ten years.
d. an unlimited fine and imprisonment of up to ten years.
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 that they had:
a. knowingly become involved in the process that enabled someone to acquire or control criminal property.
b. personally owned the proceeds of criminal activity.
c. personally used the proceeds of criminal activity.
d. unwittingly failed to report a potentially suspicious transaction.
a. knowingly become involved in the process that enabled someone to acquire or control criminal property.
A new customer to a regulated firm is required to provide a form of identification before a transaction can be undertaken.
This would not include a:
a. driving licence with photograph.
b. mobile phone bill.
c. passport.
d. recent utility bill.
b. mobile phone bill.
Under the Fourth Money Laundering Directive, beneficial owners of legal entities are defined as those who own or control what minimum percentage of the legal entity?
a. 5%.
b. 10%.
c. 25%.
d. 50%.
c. 25%.
Under the Proceeds of Crime Act 2002, which of the following is not one of the three principal money laundering offences?
a. Acquiring criminal property.
b. Arranging for someone else to use criminal property.
c. Concealing criminal property.
d. Disclosing the use of criminal property.
d. Disclosing the use of criminal property.
An offence by a UK individual under the Bribery Act can only occur in which geographical area?
a. Anywhere in the world.
b. England, Wales and Northern Ireland only.
c. In the UK only.
d. In the UK or EEA only.
a. Anywhere in the world.
Under the Money Laundering Regulations 2017, the maximum jail sentence for any individual who recklessly makes a statement in the context of money laundering which is false or misleading is:
a. 2 years.
b. 5 years.
c. 10 years.
d. 14 years.
a. 2 years.
