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Which of the following is a critical consideration for private sector firms when sharing data and intelligence to combat financial crime?

A.

The preference of upper management regarding which teams should participate in the data-sharing initiative

B.

The cost of the data-sharing system and whether it its within the existing IT budget

C.

The potential return on investment (ROI) from the data shared versus the financial crime prevention effort

D.

Ensuring that the shared data complies with applicable data protection regulations while maintaining the integrity and accuracy of the information

Which of the following ate efficient approaches lo performing horizon scanning? (Select Two.)

A.

Subscribing lo a regulators' newsletter

B.

Using a specific provider for regulatory horizon scanning

C.

Regularly contacting the regulator to inquire about updates and future developments

D.

Relying on information and insights from peers and working groups

Which of the following are common indicators of possible money laundering within the securities industry? (Choose two.)

A.

Using brokerage accounts like deposit accounts

B.

Receiving securities into an existing brokerage account following the death of a spouse

C.

Allowing fixed income securities to mature

D.

Engaging in transactions involving nominees or third parties

In order to prevent financial crime risk, the implemented policies, controls, and procedures must:

A.

include sophisticated and automated controls that use the newest types of technology available (for example, artificial intelligence (Al) and machine learning).

B.

be proportionate with regard to the size and nature of the firm, approved by senior management, and regularly reviewed

C.

be completed by the business and validated by an external firm (for example, an auditing or consulting firm)

D.

be created approved, and owned only by the First Line of Defense business team, and reviewed annually

According to the Financial Action Task Force (FATF) methodology, which situations would require a financial institution (FI) to consider filing a suspicious activity report?

A.

A beneficiary of a transaction is a politically exposed person.

B.

A FI is unable to verify the relevant customer due diligence documents.

C.

A FI identifies the payer is a dealer in precious metals or stones.

D.

A transaction involves funds exchanged from crypto to fiat currencies.

An AML compliance officer for a large bank has recently received an internal audit report on the private banking unit. The report revealed that the unit staff were not following risk-based due diligence procedures, so that the unit was not operating effectively.

Which immediate actions should the AML compliance officer consider to address these findings? (Select Two.)

Management Should implement a quality assurance program in the private banking unit

A.

Private bankers should receive training on AML procedures.

B.

All employees should receive refresher AML training.

C.

The board should review and approve a revised AML policy to change customer due diligence requirements in private banking.

D.

The legal department should conduct a review to assess potential legal consequences.

The Basel Committee on Banking Supervision published guidelines on the "Sound management of risks related to money laundering and financing of terrorism."

With regard to identifying and accepting customers, it recommends that banks: (Select Two.)

A.

Establish policies and procedures to ensure due diligence activities are identical for all customers.

B.

Establish policies and procedures to identify and verify customers, beneficial owners, and any individuals that can transact on behalf of their customers.

C.

Establish policies and procedures for customer due diligence that vary based on risk.

D.

Are prohibited from offering numbered accounts to customers, even if procedures are established to gather and maintain due diligence information.

E.

Establish policies and procedures that encourage processing transactions while due diligence information is being established and verified.

The primary objectives of the Financial Action Task Force (FATF) are to: (Choose two.)

A.

evaluate and monitor compliance with the FATF standards and provide recommendations for improvement.

B.

assist countries in implementing EU, UN, and regional sanctions regimes.

C.

develop and promote international standards to prevent money laundering and terrorist financing.

D.

conduct investigations on countries legislations and laws to prevent them from being used for money laundering and terrorist financing.

E.

ensure that countries follow its laws to maintain financial stability.

A compliance officer at a large bank has been tasked with investigating a series of unusual transactions involving a long-time customer. The customer has made several large cash deposits into multiple accounts within a short period, raising red flags. After gathering and analyzing transaction data, reviewing customer records, and cross-referencing external sources, the compliance officer determines that there is a reasonable suspicion of money laundering. As part of documenting this investigation, the compliance officer must decide how and when to escalate the matter internally and whether to file a suspicious activity report (SAR).

What is the next critical step in this process?

A.

Document the customer's transaction history and keep the investigation confidential until further suspicious activity is detected.

B.

Immediately escalate the case to senior management, recommending the closure of the customer's accounts due to potential reputational risk.

C.

Report the investigation to external auditors and await further guidance before taking any action.

D.

Draft a SAR that includes a detailed chronology of the transactions, customer background and the rationale for suspicion, and submit it to the relevant financial intelligence unit (FIU) within the regulatory timelines.

In a large US bank, an individual leads a team in charge of overseeing the governance and effectiveness of the bank's transaction monitoring approach.

Which strategies should the team implement? (Select Two.)

A.

Periodic and ad hoc cooperation with the legal team to appropriately investigate and monitor the transactions of subjects of subpoenas or government inquiries

B.

Periodic review of client profiles to ensure that the most up-to-date information is on file for high-risk clients in line with the bank's internal policies and procedures

C.

Periodic review of suspicious activity reports (SARs) filed with FinCEN to determine whether any should be withdrawn

D.

Periodic review of the transaction monitoring scenarios and their productivity to ensure that appropriate AML typologies are reflected