Acams Chap 2 Exam Questions With
100% Verified Answers
Microstructuring -
correct answer ✅This term is structuring done at a much smaller
level. Detected through:
- counter deposit slips (instead of pre-printed slips)
-frequent activity in an account immediately following the opening
of the account with preliminary and incomplete documentation
-frequent visits to make cash deposits of nominal amounts that are
inconsistent with typical business or personal banking activity
-cash deposits followed by ATM withdrawals particularly in higher
risk countries
-cash deposits into business accounts with no apparent relation
UK Joint Money Laundering Steering Group (UK JMLSG) 2006
Guidance (Credit Unions) -
correct answer ✅This Guidance by a UK ML Regulator stated that
Credit Unions pose lower ML risk due to smaller average size and
fewer products offered, still vulnerable to ML /TF High Risk
Transactions:
-Money Transfers to third partiesh for someone else
-Higher Transaction values than normal
-Activity within the accounts of children accounts
,Acams Chap 2 Exam Questions With
100% Verified Answers
Wolfsberg Principles on Correspondent Banking (5 main topics for
FI's to address (R G E M I) -
correct answer ✅This guidance issued by this group of Financial
Institutions addresses risks associated with Foreign Correspondent
Banking Relationships:
1) Responsibility and Oversight.
2) Guidelines / Consideration for Risk Based Due Diligence
3) Enhanced Due Diligence
4) Monitoring and Reporting of Suspicious Activities
5) Integration with Anti-Money Laundering
Wolfsberg Principles on Correspondent Banking: Responsibility and
Oversight mandates (4 Big Points) -
correct answer ✅This group's directive on correspondent banking
states:
-Specific Officer appointed to oversee compliance with Wolfsberg
Principles.
-Governance Body with specific oversight of Foreign Correspondent
Banking, inclusive of on-boarding and escalations may be
considered for this purpose.
,Acams Chap 2 Exam Questions With
100% Verified Answers
-Require that a separate independent senior officer (separate from
the Sponsor of the relationship) approve the Correspondent
Banking relationship.
-Provide for independent review for continued compliance with the
institution's policies, procedures and these Principles.
Wolfsberg Principles on Correspondent Banking: Risk Based Due
Diligence Guidelines/ Considerations (Measures) -
correct answer ✅All Correspondent Banking Clients will be
subjected to DD to ensure that that the FI is worth banking based
on additional risks. DD Measures
-Geographic Risk
-Branches /Subsidiaries/Affiliates of Correspondent Banking Clients
(Correspondent) (may require EDD)
-Branches, Subidiaries and Affiliates of the INstitution.
-Correspondent Banking Client's Ownership and Management
Structures
(No shells!)
-Correspondent Banking Clients Business
-Correspondent BAnking Client's Customer Base
-Products or Services Offered to the Correspondent Bank Client
- Regulatory Status and HIstory
, Acams Chap 2 Exam Questions With
100% Verified Answers
- AML Controls
-No Business Arrangements With Shell Banks (Indirect or otherwise)
-Client Visit
Wolfsberg Principles on Correspondent Banking: Enhanced Due
Diligence (Warranted for) and mandated -
correct answer ✅Enhanced Due Diligence for:
-PEP involvement
-Downstream Correspondents (Nested Relationships)
-Approval by Higher Levels of Business and Compliance. Periodic
Reviews shall be conducted of all high risk Correspondent Banking
Relationships (at minimum Annual)
Wolfsberg Principles on Correspondent Banking: Monitoring and
Reporting mandated for... -
correct answer ✅FIs to create Policies and Procedures to detect
and investigate unusual or suspicious FCB activity and report any
such activity as required by applicable law. These will include
guidance on what is considered to be a unusual and suspicious and
gives example)
100% Verified Answers
Microstructuring -
correct answer ✅This term is structuring done at a much smaller
level. Detected through:
- counter deposit slips (instead of pre-printed slips)
-frequent activity in an account immediately following the opening
of the account with preliminary and incomplete documentation
-frequent visits to make cash deposits of nominal amounts that are
inconsistent with typical business or personal banking activity
-cash deposits followed by ATM withdrawals particularly in higher
risk countries
-cash deposits into business accounts with no apparent relation
UK Joint Money Laundering Steering Group (UK JMLSG) 2006
Guidance (Credit Unions) -
correct answer ✅This Guidance by a UK ML Regulator stated that
Credit Unions pose lower ML risk due to smaller average size and
fewer products offered, still vulnerable to ML /TF High Risk
Transactions:
-Money Transfers to third partiesh for someone else
-Higher Transaction values than normal
-Activity within the accounts of children accounts
,Acams Chap 2 Exam Questions With
100% Verified Answers
Wolfsberg Principles on Correspondent Banking (5 main topics for
FI's to address (R G E M I) -
correct answer ✅This guidance issued by this group of Financial
Institutions addresses risks associated with Foreign Correspondent
Banking Relationships:
1) Responsibility and Oversight.
2) Guidelines / Consideration for Risk Based Due Diligence
3) Enhanced Due Diligence
4) Monitoring and Reporting of Suspicious Activities
5) Integration with Anti-Money Laundering
Wolfsberg Principles on Correspondent Banking: Responsibility and
Oversight mandates (4 Big Points) -
correct answer ✅This group's directive on correspondent banking
states:
-Specific Officer appointed to oversee compliance with Wolfsberg
Principles.
-Governance Body with specific oversight of Foreign Correspondent
Banking, inclusive of on-boarding and escalations may be
considered for this purpose.
,Acams Chap 2 Exam Questions With
100% Verified Answers
-Require that a separate independent senior officer (separate from
the Sponsor of the relationship) approve the Correspondent
Banking relationship.
-Provide for independent review for continued compliance with the
institution's policies, procedures and these Principles.
Wolfsberg Principles on Correspondent Banking: Risk Based Due
Diligence Guidelines/ Considerations (Measures) -
correct answer ✅All Correspondent Banking Clients will be
subjected to DD to ensure that that the FI is worth banking based
on additional risks. DD Measures
-Geographic Risk
-Branches /Subsidiaries/Affiliates of Correspondent Banking Clients
(Correspondent) (may require EDD)
-Branches, Subidiaries and Affiliates of the INstitution.
-Correspondent Banking Client's Ownership and Management
Structures
(No shells!)
-Correspondent Banking Clients Business
-Correspondent BAnking Client's Customer Base
-Products or Services Offered to the Correspondent Bank Client
- Regulatory Status and HIstory
, Acams Chap 2 Exam Questions With
100% Verified Answers
- AML Controls
-No Business Arrangements With Shell Banks (Indirect or otherwise)
-Client Visit
Wolfsberg Principles on Correspondent Banking: Enhanced Due
Diligence (Warranted for) and mandated -
correct answer ✅Enhanced Due Diligence for:
-PEP involvement
-Downstream Correspondents (Nested Relationships)
-Approval by Higher Levels of Business and Compliance. Periodic
Reviews shall be conducted of all high risk Correspondent Banking
Relationships (at minimum Annual)
Wolfsberg Principles on Correspondent Banking: Monitoring and
Reporting mandated for... -
correct answer ✅FIs to create Policies and Procedures to detect
and investigate unusual or suspicious FCB activity and report any
such activity as required by applicable law. These will include
guidance on what is considered to be a unusual and suspicious and
gives example)
