Topic 5 - Trade-based Financial Crime Compliance

Question 1

List the 3 stages in Money Laundering

Answer 1

1) Placement - dirty funds entering the financial system
2) Layering - layers of transactions distance the money from it’s illegal origins
3) Integration - funds re-enter legitimate commerce looking clean

Question 2

What are Dual-use items?

Answer 2

Dual-use items = goods, software and technology that can be used for both civilian and military applications.

Question 3

What does FATF stand for and what does it do?

Answer 3

FATF = The Financial Action Task Force

The FATF = an inter-governmental body that sets standards and promotes effective implementation of legal, regulatory and operational measures for combatting money laundering, terrorist financing and other related threats to the integrity of the international financial system.

Question 4

Sanctions applicability?

Answer 4

Sanctions can apply to:

• individuals
• organizations
• countries