AML EXAM 1 QUESTIONS WITH 100% CORRECT ANSWERS

AML EXAM 1 QUESTIONS WITH 100% CORRECT ANSWERS 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 - answerb 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 - answera 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 - answera,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 - answera 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 - answera 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 - answerb,c,d Accepting money derived from illegal sources makes you an accomplice to money laundering. a. no b. yes - answerb 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 - answera 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 - answera 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