CFT Exam with all Correct & 100% Verified Answers |
Latest Version |Already Graded A+
In the first stage of money laundering what is the goal?
a. distance yourself from the money
b. get the money into the financial system
c. make it appear that the money is legitimate
d. purchase high-end goods ✔Correct Answer-b
What is the process in the second stage of money laundering?
a. sending money between accounts so the audit trail is obscured
b. bribing bank officials to take the money
c. investing the money into legitimate business operations
d. depositing the money into a bank account ✔Correct Answer-a
What are the three things that might be done during the course of laundering money?
a. depositing money into a bank account
b. underpaying taxes
c. buying high-end goods
d. sending money abroad ✔Correct Answer-a,c,d
What is the ultimate purpose of money laundering?
a. to make it appear that the funds are legitimate
b. to invest money in your business
c. to invest in high-end luxury goods
d. to buy more drugs ✔Correct Answer-a
Why is a payable through account vulnerable to money laundering?
a. it can be very difficult to conduct due diligence on the foreign institution customers who are
ultimately using these accounts
b. these are concentration accounts located in a domestic branch of a foreign bank
c. these are nested correspondent accounts at a foreign shell bank with customers with whom
the domestic bank did not exercise due diligence
d. these are master escrow accounts on which a domestic bank generally does not conduct
periodic verification ✔Correct Answer-a
In which three areas can money laundering occur?
a. in luxury hotels
b. in payable through accounts
c. in correspondent accounts
d. in bank accounts ✔Correct Answer-b,c,d
, Accepting money derived from illegal sources makes you an accomplice to money laundering.
a. no
b. yes ✔Correct Answer-b
Financial institutions that rely on the proceeds of crime face all of the following adverse
consequences of money laundering, EXCEPT:
a. diversification risks
b. reputational risks
c. operational risks
d. legal risks ✔Correct Answer-a
Structuring is usually a process associated with which stage of money laundering?
a. first stage
b. second stage
c. third stage
d. none of the above ✔Correct Answer-a
What are the three potential economic consequences of money laundering in a country?
a. increased drug trafficking
b. corruption
c. increased wealth for the residents
d. increased crime ✔Correct Answer-a,b,d
What is the definition of a respondent bank?
a. a bank for which another financial institution establishes, maintains, administers or manages
a correspondent account
b. a bank that provides international services to another local financial institution
c. a foreign bank that does not have a permanent staff
d. a bank that is not subject to any regulation ✔Correct Answer-a
Designing a transaction to evade triggering a reporting or recordkeeping requirement is called
a. layering
b. nesting
c. structuring
d. cuckoo smurfing ✔Correct Answer-c
What is nesting?
a. when a respondent bank is providing upstream correspondent services to other financial
institutions
b. when a respondent bank is providing downstream correspondent services to other financial
institutions
c. the bank may not know the source of the funds
d. when customers have accounts with many local banks ✔Correct Answer-b
Latest Version |Already Graded A+
In the first stage of money laundering what is the goal?
a. distance yourself from the money
b. get the money into the financial system
c. make it appear that the money is legitimate
d. purchase high-end goods ✔Correct Answer-b
What is the process in the second stage of money laundering?
a. sending money between accounts so the audit trail is obscured
b. bribing bank officials to take the money
c. investing the money into legitimate business operations
d. depositing the money into a bank account ✔Correct Answer-a
What are the three things that might be done during the course of laundering money?
a. depositing money into a bank account
b. underpaying taxes
c. buying high-end goods
d. sending money abroad ✔Correct Answer-a,c,d
What is the ultimate purpose of money laundering?
a. to make it appear that the funds are legitimate
b. to invest money in your business
c. to invest in high-end luxury goods
d. to buy more drugs ✔Correct Answer-a
Why is a payable through account vulnerable to money laundering?
a. it can be very difficult to conduct due diligence on the foreign institution customers who are
ultimately using these accounts
b. these are concentration accounts located in a domestic branch of a foreign bank
c. these are nested correspondent accounts at a foreign shell bank with customers with whom
the domestic bank did not exercise due diligence
d. these are master escrow accounts on which a domestic bank generally does not conduct
periodic verification ✔Correct Answer-a
In which three areas can money laundering occur?
a. in luxury hotels
b. in payable through accounts
c. in correspondent accounts
d. in bank accounts ✔Correct Answer-b,c,d
, Accepting money derived from illegal sources makes you an accomplice to money laundering.
a. no
b. yes ✔Correct Answer-b
Financial institutions that rely on the proceeds of crime face all of the following adverse
consequences of money laundering, EXCEPT:
a. diversification risks
b. reputational risks
c. operational risks
d. legal risks ✔Correct Answer-a
Structuring is usually a process associated with which stage of money laundering?
a. first stage
b. second stage
c. third stage
d. none of the above ✔Correct Answer-a
What are the three potential economic consequences of money laundering in a country?
a. increased drug trafficking
b. corruption
c. increased wealth for the residents
d. increased crime ✔Correct Answer-a,b,d
What is the definition of a respondent bank?
a. a bank for which another financial institution establishes, maintains, administers or manages
a correspondent account
b. a bank that provides international services to another local financial institution
c. a foreign bank that does not have a permanent staff
d. a bank that is not subject to any regulation ✔Correct Answer-a
Designing a transaction to evade triggering a reporting or recordkeeping requirement is called
a. layering
b. nesting
c. structuring
d. cuckoo smurfing ✔Correct Answer-c
What is nesting?
a. when a respondent bank is providing upstream correspondent services to other financial
institutions
b. when a respondent bank is providing downstream correspondent services to other financial
institutions
c. the bank may not know the source of the funds
d. when customers have accounts with many local banks ✔Correct Answer-b
