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Which of the following is a common strategy employed by non-governmental organizations (NGOs) to combat money laundering?

A.

Helping Financial Intelligence Units (FIUs) to analyze the suspicious activity reports (SARs)

B.

Directly prosecuting money launderers in court

C.

Providing financial assistance to governments to strengthen their anti-money laundering efforts

D.

Raising awareness about the issue of money laundering and its consequences

An internal audit team is reviewing the anti-financial crime (AFC) program of its firm.

Which of the following attributes of the third line of defense would be most critical to ensure unbiased and effective oversight?

A.

Consistency of approach

B.

Periodic training of the function

C.

Qualification of the team

D.

Independent testing

The financial industry relies heavily on rules-based approaches to transaction monitoring to detect suspicious activities.

Scenario-based systems use technology and algorithms to identify: (Choose three.)

A.

fraudulent identities involving stolen or manufactured identification.

B.

suspicious behavior involving a transaction that occurs at an unusual time of day.

C.

hidden beneficial owners.

D.

transaction patterns involving transactions that exceed a certain dollar amount.

E.

anomalies involving a transaction that occurs in a location far away from the customer's usual spending patterns.

When a multinational organization develops its anti-financial crime (AFC) program, what is the most important consideration for ensuring compliance across different jurisdictions?

A.

Ensuring sanctions coy on international bodies like the UN because there is no requirement to adhere to local laws.

B.

Ensuring group policies and procedures prioritize adherence to US regulations because they are the most influential worldwide.

C.

Applying global AFC and sanctions policies to ensure consistency without the need to adapt to local regulations.

D.

Ensuring group policies cater to compliance with each country's specific AML and sanctions regulations.

Having a risk-based approach is central to a financial institution understanding the money laundering and terrorist financing risk to which they are exposed. The development of a money laundering and terrorist financing risk assessment is a key starting point.

Commonly used risk factors include. (Select Three.)

A.

product risk.

B.

credit risk.

C.

geographic risk.

D.

customer risk.

E.

liquidity risk.

In a standard customer due diligence (CDD) process focused on financial inclusion, the Financial Action Task Force (FATF) Recommendations require: (Choose two.)

A.

identification of the customer's occupation.

B.

identification and verification of the customer's identity.

C.

identification of the customer's work address.

D.

identification of the beneficial owner.

E.

verification of the customer's credit history.

F.

[verification of the customer's income sources.

An employee at a financial institution (FI) suspects that one of their co-workers is involved in a financial investment scam syndicate.

Which step should be taken next by the employee who has the suspicion?

A.

Conduct an open-source intelligence investigation using artificial intelligence tools to gain more information on the activities of the suspected employee

B.

Use the FI's whistleblowing channel to report the suspected employee

C.

Question their co-worker to determine if their suspicions are correct before reporting to the FI's Human Resources department

D.

Warn colleagues and customers of the FI that the employee's suspicious financial investment proposals could be a scam

E.

Report the suspected employee to the line manager of the FI to take the required action

When the Financial Action Task Force (FATF) places a jurisdiction on the list of "jurisdictions under increased monitoring," also known as the "grey list," the jurisdiction:

A.

Accepts to participate in an off-cycle FATF mutual evaluation to be held within the next 12 months.

B.

Must pay a fine to be removed from the list before the next FATF plenary.

C.

Has committed to swiftly resolving the deficiencies identified in a FATF mutual evaluation.

D.

Poses a high money laundering, terrorist financing and proliferation financing risk and must be restricted from accessing the international financial system.

Which scenario best justifies why a customer's account might be closed by a financial institution?

A.

The customer is the object of a civil subpoena.

B.

The customer uses a shipping company dealing with specially designated nationals.

C.

The account shows periodic fixed amount remittances for tuition fees.

D.

The account has transactions that triggered multiple suspicious activity reports.

The law enforcement agency (LEA) of a foreign jurisdiction contacts a financial institution (FI) regarding one of the FI's clients. The LEA advises that the client is currently wanted for prosecution as a result of a series of human trafficking charges.

What should the FI do? (Select Two.)

A.

Inform local LEA and regulator of the request for awareness

B.

Close the client's accounts immediately to avoid any undue risk

C.

Review the client's activity, determine if suspicious activity exists, and report accordingly

D.

Advise the LEA that the government needs to be contacted for extradition

E.

Comply immediately with the foreign jurisdiction and turn over all client information