MONEY LAUNDERING UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS
Question:
The most dangerous step for money launderers is
Answer:
Placement
Question:
It is estimated that money laundering constitutes
Answer:
2-5% of the world's GDP
Question:
The primary source of illegal funds is
Answer:
Illegal Drugs
Question:
The first step in the money laundering process is
Answer:
Placement
Question:
Integration in the money laundering process means
Answer:
Commingling illegal funds with legitimate funds
Question:
A reason that the insurance industry is particularly susceptible to money
laundering is
Answer:
Business is conducted through agents
Question:
The securities industry lends itself well to money laundering because of all of
the following EXCEPT
Answer:
The industry is extremely effective at conducting due diligence of account
holders
Question:
All of the following are threats to AML efforts EXCEPT
Answer:
The Bank Secrecy Act
Question:
Reasons that the securities industry is particularly vulnerable to money
laundering include all of the following EXCEPT
, Answer:
A strong supervisory system
Question:
Private client banking is susceptible to money laundering efforts because
Answer:
Conflicts of interest exist among private bankers charged with monitoring the
accounts
Question:
Which of the following still forms the foundation for today's AML legislation?
Answer:
The Bank Secrecy Act
Question:
All of the following are objectives of an effective "know your customer" policy
EXCEPT
Answer:
Ascertaining the names and ages of all members of the customer's family
Question:
Which of the following first made noncompliance a felony?
Answer:
Money Laundering Control Act of 1986
Question:
Which of the following was enacted when it became apparent that money
laundering had a role in the terrorist act of September 11
Answer:
The USA PATRIOT Act
Question:
Depositing illicit money in a financial institution is an example of
Answer:
Placement
Question:
The 2 methods used to verify customer information provided by a client are
Answer:
The documentary and non-documentary methods
Question:
Customer identification programs (CIPSs) are designed to help a firm
Answer:
Have a reasonable belief that it knows the true identity of its customers
Question:
When opening a new account, it's important to gather and verify
Answer:
The customers's name and date of birth
Question:
All of the following are options if your firm cannot form a reasonable belief
that it knows the true identity of a customer EXCEPT
AND CORRECT ANSWERS
Question:
The most dangerous step for money launderers is
Answer:
Placement
Question:
It is estimated that money laundering constitutes
Answer:
2-5% of the world's GDP
Question:
The primary source of illegal funds is
Answer:
Illegal Drugs
Question:
The first step in the money laundering process is
Answer:
Placement
Question:
Integration in the money laundering process means
Answer:
Commingling illegal funds with legitimate funds
Question:
A reason that the insurance industry is particularly susceptible to money
laundering is
Answer:
Business is conducted through agents
Question:
The securities industry lends itself well to money laundering because of all of
the following EXCEPT
Answer:
The industry is extremely effective at conducting due diligence of account
holders
Question:
All of the following are threats to AML efforts EXCEPT
Answer:
The Bank Secrecy Act
Question:
Reasons that the securities industry is particularly vulnerable to money
laundering include all of the following EXCEPT
, Answer:
A strong supervisory system
Question:
Private client banking is susceptible to money laundering efforts because
Answer:
Conflicts of interest exist among private bankers charged with monitoring the
accounts
Question:
Which of the following still forms the foundation for today's AML legislation?
Answer:
The Bank Secrecy Act
Question:
All of the following are objectives of an effective "know your customer" policy
EXCEPT
Answer:
Ascertaining the names and ages of all members of the customer's family
Question:
Which of the following first made noncompliance a felony?
Answer:
Money Laundering Control Act of 1986
Question:
Which of the following was enacted when it became apparent that money
laundering had a role in the terrorist act of September 11
Answer:
The USA PATRIOT Act
Question:
Depositing illicit money in a financial institution is an example of
Answer:
Placement
Question:
The 2 methods used to verify customer information provided by a client are
Answer:
The documentary and non-documentary methods
Question:
Customer identification programs (CIPSs) are designed to help a firm
Answer:
Have a reasonable belief that it knows the true identity of its customers
Question:
When opening a new account, it's important to gather and verify
Answer:
The customers's name and date of birth
Question:
All of the following are options if your firm cannot form a reasonable belief
that it knows the true identity of a customer EXCEPT
