Money Laundering Test Questions
AND ANSWERS GRADED A+ PASSED
D - ANS ✔✔All of the following are primary forces behind increased compliance efforts EXCEPT
A. Reputational risk
B. A company's good reputation improves business
C. Regulatory requirements
D. Money laundering activities are on the decline
C - ANS ✔✔Which of the following is the largest source of funds that go through the money
laundering process?
A. Financial crimes
B. Embezzlement and extortion
C. Drug trafficking
D. Organized crime rings
C - ANS ✔✔The insurance industry is susceptible to money laundering because
A. Agents and brokers focus more on money laundering than they do on sales
B.the industry strictly controls overfunding and additional deposits
C. The insurance industry has low levels of suspicious activity reporting
D. The international nature of the reinsurance market makes it easy to understand all aspects of
insurance transactions
,C - ANS ✔✔The International Monetary Fund (IMF) estimates that money laundering is about
what percent of the world's gross domestic product?
A. 4-8%
B. 1-3%
C. 2-5%
D. 6-10%
C - ANS ✔✔Criminals are increasingly turning to insurance and other financial industries to
launder money for all f the following reasons except
A. The insurance industry has low levels of suspicious activity reporting
B. The rise of sophisticated controls against money laundering in the banking sector
C. Insurers are incorporating world class AML technology
D. Insurance products are often marketed through non-insurance professionals
B - ANS ✔✔Which of these is a reason that the insurance industry is susceptible to money
laundering?
A. The regulators do not understand the insurance industry
B. There is a general lack of AML supervision in the insurance industry
C. The insurance industry is exempt from most anti-money laundering regulations
D. The anti-money laundering rules and regulations are too vague
D - ANS ✔✔Which of the following describes the integration stage?
, A. A money laundered divides large cash deposits into smaller amounts to avoid reporting
requirements
B. To make the illegal funds harder to detect, layers of transactions are used
C. Placing the funds in the laundering system with little or no effort to disguise their illegal
origins
D. Illegal funds are commingled with legitimate funds
D - ANS ✔✔Which stage involves numerous transactions that vary in form and complexity?
A. Placement
B. Gradation
C. Integration
D. Layering
A - ANS ✔✔Which is the first and most dangerous step in the money laundering process?
A. Placement
B. Assimilation
C. Integration
D. Layering
A - ANS ✔✔All of the following make the insurance industry susceptible to money laundering
except
A. Guaranteed products
B. Agents and brokers who are often unaware of the need to screen clients or to question
payment methods
AND ANSWERS GRADED A+ PASSED
D - ANS ✔✔All of the following are primary forces behind increased compliance efforts EXCEPT
A. Reputational risk
B. A company's good reputation improves business
C. Regulatory requirements
D. Money laundering activities are on the decline
C - ANS ✔✔Which of the following is the largest source of funds that go through the money
laundering process?
A. Financial crimes
B. Embezzlement and extortion
C. Drug trafficking
D. Organized crime rings
C - ANS ✔✔The insurance industry is susceptible to money laundering because
A. Agents and brokers focus more on money laundering than they do on sales
B.the industry strictly controls overfunding and additional deposits
C. The insurance industry has low levels of suspicious activity reporting
D. The international nature of the reinsurance market makes it easy to understand all aspects of
insurance transactions
,C - ANS ✔✔The International Monetary Fund (IMF) estimates that money laundering is about
what percent of the world's gross domestic product?
A. 4-8%
B. 1-3%
C. 2-5%
D. 6-10%
C - ANS ✔✔Criminals are increasingly turning to insurance and other financial industries to
launder money for all f the following reasons except
A. The insurance industry has low levels of suspicious activity reporting
B. The rise of sophisticated controls against money laundering in the banking sector
C. Insurers are incorporating world class AML technology
D. Insurance products are often marketed through non-insurance professionals
B - ANS ✔✔Which of these is a reason that the insurance industry is susceptible to money
laundering?
A. The regulators do not understand the insurance industry
B. There is a general lack of AML supervision in the insurance industry
C. The insurance industry is exempt from most anti-money laundering regulations
D. The anti-money laundering rules and regulations are too vague
D - ANS ✔✔Which of the following describes the integration stage?
, A. A money laundered divides large cash deposits into smaller amounts to avoid reporting
requirements
B. To make the illegal funds harder to detect, layers of transactions are used
C. Placing the funds in the laundering system with little or no effort to disguise their illegal
origins
D. Illegal funds are commingled with legitimate funds
D - ANS ✔✔Which stage involves numerous transactions that vary in form and complexity?
A. Placement
B. Gradation
C. Integration
D. Layering
A - ANS ✔✔Which is the first and most dangerous step in the money laundering process?
A. Placement
B. Assimilation
C. Integration
D. Layering
A - ANS ✔✔All of the following make the insurance industry susceptible to money laundering
except
A. Guaranteed products
B. Agents and brokers who are often unaware of the need to screen clients or to question
payment methods
