Unit 2 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
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.
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.
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
