Topic 23 Flashcards
Which one of following is true in respect of a firm’s responsibilities under the money laundering regulations? A firm must:
A. report suspicious circumstances
B. maintain client confidentiality at all times
C. appoint its Money Laundering Reporting Officer at director or partner level
D. deny access to appropriate services to anybody unable to provide detailed evidence of identity
A. report suspicious circumstances
Employees should receive regular training about money laundering so that:
A. they are aware of the consequences to themselves if they fail to comply.
B. they can complete the Money Laundering Report.
C. they can assess their firm’s compliance with the sourcebook.
D. they can caution as appropriate any suspect individuals.
A. they are aware of the consequences to themselves if they fail to comply.
In relation to money laundering, how is ‘property’ defined under the European Directive 1991?
A. Physical assets with a freehold title deed only
B. Assets held in cash within the European Union only
C. Physical assets with a leasehold title deed only
D. Assets of every kind including legal papers giving title to such assets
D. Assets of every kind including legal papers giving title to such assets
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 that the person is involved in money laundering
B. advise the person that 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
D. have reasonable grounds for believing that a person is involved in money laundering
Why might money laundering regulations create ‘financial exclusion’?
A. Because not everyone can provide the necessary identification
B. Because certain non-residents cannot be offered banking facilities
C. Because financial organisations are wary of opening bank accounts with cash deposits
D. Because customers want to know why they have been declined a financial product
A. Because not everyone can provide the necessary identification
What is the MAIN reason why an authorised firm’s senior management must requisition an annual report from its Money Laundering Reporting Officer?
A. So that they can be compliant with the Proceeds of Crime Act
B. In order to monitor activities and increase deficiencies
C. So that they can be compliant with the Financial Services Act
D. In order to review activities and strengthen controls
D. In order to review activities and strengthen controls
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 of converting criminal property.
B. personally owned the proceeds of criminal activity.
C. unwittingly failed to report a potentially suspicious transaction.
D. personally used the proceeds of criminal activity.
A. knowingly become involved in the process of converting criminal property.
Insurance Life plc has set up an ISA for a new client. Why was it NOT necessary for the company to obtain evidence of identity for money laundering purposes?
A. The client was introduced by an intermediary who obtained the necessary evidence
B. Investments into ISAs are exempt from money laundering identification requirements
C. The client is only temporarily resident in the UK.
D. Investment amounts of less than £10,000 are exempt from money laundering identification requirements
A. The client was introduced by an intermediary who obtained the necessary evidence
Staff training on money laundering must cover all of the following requirements EXCEPT how to:
A. liaise with the National Crime Agency.
B. identify potentially suspicious transactions.
C. evidence client identity.
D. report suspicious transactions.
A. liaise with the National Crime Agency.
An authorised firm’s senior management must ensure that their organisation is protected from use by money launderers by doing all of the following EXCEPT:
A. appointing a Money Laundering Reporting Officer.
B. providing regular training for staff.
C. alerting those under suspicion of money laundering.
D. reporting suspicious transactions.
C. alerting those under suspicion of money laundering.
Mandy, a financial adviser, has completed a report form and submitted it to her company’s Money Laundering Reporting Officer. Under what circumstances would she take this action?
A. Only when she believes a colleague may be supporting money laundering
B. Only when she knows, for sure, that a client is involved in money laundering activity
C. When the value of the transaction exceeds €15,000
D. When she knows or suspects that a client is involved in money laundering activity
D. When she knows or suspects that a client is involved in money laundering activity
Paul was prosecuted under the Proceeds of Crime Act 2002 and received the maximum sentence of five years and a fine. This means that he must have been convicted of which money laundering offence?
A. Concealing
B. Tipping off
C. Arranging
D. Acquiring
B. Tipping off
