AML Test Questions And Answers

What are the four elements of fraud? - Answer- 1. Material false statement 2. Knowledge that statement is false 3. Reliance on false statement 4. Financial loss What is the distinct difference between a fraud and an attempted fraud? - Answer- Financial loss What is the process of making illegally obtained proceeds appear legal? - Answer- Money laundering What two financial statements are usually provided by a business to a financial institution when trying to secure a business loan? - Answer- Balance sheet & Income statement What is a financial statement that summarizes a company's assets, liabilities (what you own and what you owe) plus the net worth at a specific point in time? - Answer- Balance sheet What is a financial statement that reports a company's revenue and expenses and profit/loss over a specific period of time? - Answer- Income statement What is a division of the United States Treasury Department whose goal is to prevent and punish criminals and criminal networks that participate in money laundering? - Answer- FINCEN (Financial Crimes Enforcement Network) What is a report that US financial institutions are required to file for each deposit, withdrawal or exchange of currency in excess of $10,000? - Answer- CTR (Currency Transaction Report) What is a report that financial institutions must file following a suspected incident of money laundering, fraud or other violation of the law? - Answer- SAR (Suspicious Activity Report) What is a form that needs to be filed by any person in a trade or business who receives more than $10,000 in cash in a single transaction or related transactions? - Answer- Form 8300 What is the central bank of the United States, founded in 1913 to provide the nation with a safe, flexible and stable monetary and financial system? - Answer- The Federal Reserve Who was the N