TOPIC 23 - Anti money laundering Flashcards
The primary money laundering offences do not include:
a) arranging.
b) obscuring.
c) acquiring.
d) concealing.
b) obscuring.
Charlotte is suspicious that a bank customer may be trying to launder money through an account. To whom should she report her suspicions?
a) The National Crime Agency.
b) The local police.
c) Her line manager.
d) The bank’s Money Laundering Reporting Officer.
d) The bank’s Money Laundering Reporting Officer.
EU member states must keep a central register of the beneficial owners of legal entities. A beneficial owner is someone who owns or controls at least what percentage of the entity?
a) 10.
b) 20.
c) 25.
d) 49.
c) 25.
Jenny is facing a money laundering charge of tipping off. What is the maximum sanction she could face?
a) Two years in prison, an unlimited fine, or both.
b) Three years in prison or an unlimited fine.
c) Five years in prison, an unlimited fine or both.
d) An unlimited prison sentence or an unlimited fine.
c) Five years in prison, an unlimited fine or both.
What would not be acceptable evidence of identity under money laundering legislation?
a) Utility bill or statement.
b) Mobile phone bill or statement.
c) Electoral roll statement.
d) Photo driving licence.
b) Mobile phone bill or statement.
Freddie is making a single premium payment into a life assurance policy. What is the minimum level of premium that will require the firm to carry out due diligence?
a) €1,000.
b) €2,500.
c) €10,000.
d) €15,000.
b) €2,500.
Barry has been found guilty of making recklessly false and misleading statements related to money laundering. What is the maximum applicable penalty?
a) An unlimited fine.
b) 2 years in prison, a fine or both.
c) 3 years in prison or a fine.
d) 5 years in prison, an unlimited fine or both.
b) 2 years in prison, a fine or both.
The Money Laundering Regulations 2017 define a politically exposed person as anybody in a senior position in a national or international governing body.
a) True b) False
b) False
It is defined as individuals who, because of their position, are considered to be more vulnerable to corruption.
o meet money laundering obligations, what is the minimum length of time an organisation must keep supporting evidence of a transaction after it was executed?
a) 12 months.
b) 3 years.
c) 5 years.
d) For the length of the client relationship.
c) 5 years.
Graham wondered if a customer might be using his bank account to launder money, but decided it was too much trouble to tell anyone. Later on, it was shown that Graham’s suspicions were correct. What could be the consequences for Graham?
a) He would receive an automatic fixed penalty.
b) He could be prosecuted for failure to disclose.
c) He could be prosecuted for tipping off.
d) None. As he had no proof, he had no obligation to report his suspicions.
b) He could be prosecuted for failure to disclose.
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:
a) had knowingly become involved in the process of converting criminal property.
b) personally owned the proceeds of criminal activity.
c) had unwittingly failed to report a potentially suspicious transaction.
d) had personally used the proceeds of criminal activity.
a) had knowingly become involved in the process of converting criminal property.
Transferring criminally obtained money through different accounts is an offence only if the funds derive from drug dealing or terrorist activity. True or false?
False. Transferring, disguising, concealing or converting criminal property is an offence, no matter what form of criminal activity the funds derive from.
The FATF’s role is to establish a broad policy framework at an international level for the prevention of money laundering.
True or false?
True
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.
A bank cashier notices that a customer is paying an unusually large sum of money into their account in cash. The cashier advises the customer that they regard the transaction as suspicious and calls a supervisor to discuss the matter further with the customer. What offence has the cashier potentially committed?
a) Data protection breach.
b) Tipping off.
c) Failure to disclose.
d) Arranging.
b) Tipping off.
