AML TEST ACTUAL COMPLETE EXAM|WITH
ACCURATE QUESTIONS AND VERIFIED
ANSWERS|GRADED A
A bank can apply the following methods to reduce the money laundering
risk associated with third party payment processors Ans✓✓✓
implementing a policy that requires an initial background check of the
processor and the processors underlying merchants
restrict the types of entities for which the bank will allow processing
services
A bank must establish the accuracy of every element of identifying
information obtained under the CIP Ans✓✓✓ False
A bank must verify the identification of an agent who is opening an
account on behalf of another person Ans✓✓✓ False
A bank must verify the identification of an individual opening a new
account for another individual who lacks the legal capacity Ans✓✓✓
True
A bank that has implemented partially Consolidated anti-money
laundering compliance program May opt to assess its risk profile by
assessing risk individually within business lines or across all activities
and legal entities Ans✓✓✓ True
,A bank with a higher number of large value domestic wire transfers
would have a higher risk rating than a bank with a significantly lower
number of low value International fund transfers Ans✓✓✓ True
A bank's bsa/aml compliance program must Ans✓✓✓ be in writing
be approved by the board of directors
be noted in the board minutes
A bank's General Due diligence program must include policies
procedures and processes to assess the risk polls by the bank's foreign
financial institution Ans✓✓✓ True
A bank's independent testing should at minimum include Ans✓✓✓ an
evaluation of the overall integrity and effectiveness of the BSA AML
compliance program
A review of the bank's risk assessment for reasonableness appropriate
risk transaction testing
A bank's non-documentary verification procedures must address among
other situations the following when Ans✓✓✓ an individual is not able to
present an unexpired government issued identification document that
bears a photograph or similar safeguard
when the bank is not familiar with the documents presented when the
customer opens the account without appearing in person
,A business that engages in multiple business activities may qualify for
an exemption as non-listed business as long as no more than what
percentage of its cross revenues per year is derived from one or more of
the ineligible business activities Ans✓✓✓ 50%
A construction company owned by a British Virgin Island company that
is turn owned by a partnership that includes a senior officer in the
foreign countries military Ans✓✓✓ PEP
A major risk posed by third-party processors is that when the bank is
unable to identify and understand the nature and source of the
transaction process through an account the risk to the bank and the
likelihood of suspicious activity may increase Ans✓✓✓ True
A parallel banking organization exists when at least two US banks are
controlled either directly or indirectly by the same person or group of
persons Ans✓✓✓ False
A sar narrative should contain an introduction a body of information and
a conclusion Ans✓✓✓ True
A US branch of a foreign Bank should not share SAR with its head
office outside the US Ans✓✓✓ False
A US dollar draft is Ans✓✓✓ a check denominated in US dollars made
available at a foreign Financial
, According to CIP regulations a customer is Ans✓✓✓ an individual or
other entity recognize as a legal person who opens a new account
an individual who opens a new account for another individual who lacks
legal capacity
According to CIP regulations and account includes Ans✓✓✓ a deposit
transaction or asset account
a credit account or other extension of credit
our relationship to provide cash management trust and custodial services
According to fincen the Colombian Black Market peso exchange is the
most efficient and extensively used money laundering system in the
Western Hemisphere Ans✓✓✓ True
ACH transactions may involve one-time debits Ans✓✓✓ True
ACH transactions that are originated through a third party service
provider that is when the originator is not a direct customer of the odfi
may increase the bsa/aml wrist therefore making it difficult for an odfi to
under right and review originator transactions for compliance with BSA
/ AML rules Ans✓✓✓ True
All MSB should be classified as high risk accounts Ans✓✓✓ False
ACCURATE QUESTIONS AND VERIFIED
ANSWERS|GRADED A
A bank can apply the following methods to reduce the money laundering
risk associated with third party payment processors Ans✓✓✓
implementing a policy that requires an initial background check of the
processor and the processors underlying merchants
restrict the types of entities for which the bank will allow processing
services
A bank must establish the accuracy of every element of identifying
information obtained under the CIP Ans✓✓✓ False
A bank must verify the identification of an agent who is opening an
account on behalf of another person Ans✓✓✓ False
A bank must verify the identification of an individual opening a new
account for another individual who lacks the legal capacity Ans✓✓✓
True
A bank that has implemented partially Consolidated anti-money
laundering compliance program May opt to assess its risk profile by
assessing risk individually within business lines or across all activities
and legal entities Ans✓✓✓ True
,A bank with a higher number of large value domestic wire transfers
would have a higher risk rating than a bank with a significantly lower
number of low value International fund transfers Ans✓✓✓ True
A bank's bsa/aml compliance program must Ans✓✓✓ be in writing
be approved by the board of directors
be noted in the board minutes
A bank's General Due diligence program must include policies
procedures and processes to assess the risk polls by the bank's foreign
financial institution Ans✓✓✓ True
A bank's independent testing should at minimum include Ans✓✓✓ an
evaluation of the overall integrity and effectiveness of the BSA AML
compliance program
A review of the bank's risk assessment for reasonableness appropriate
risk transaction testing
A bank's non-documentary verification procedures must address among
other situations the following when Ans✓✓✓ an individual is not able to
present an unexpired government issued identification document that
bears a photograph or similar safeguard
when the bank is not familiar with the documents presented when the
customer opens the account without appearing in person
,A business that engages in multiple business activities may qualify for
an exemption as non-listed business as long as no more than what
percentage of its cross revenues per year is derived from one or more of
the ineligible business activities Ans✓✓✓ 50%
A construction company owned by a British Virgin Island company that
is turn owned by a partnership that includes a senior officer in the
foreign countries military Ans✓✓✓ PEP
A major risk posed by third-party processors is that when the bank is
unable to identify and understand the nature and source of the
transaction process through an account the risk to the bank and the
likelihood of suspicious activity may increase Ans✓✓✓ True
A parallel banking organization exists when at least two US banks are
controlled either directly or indirectly by the same person or group of
persons Ans✓✓✓ False
A sar narrative should contain an introduction a body of information and
a conclusion Ans✓✓✓ True
A US branch of a foreign Bank should not share SAR with its head
office outside the US Ans✓✓✓ False
A US dollar draft is Ans✓✓✓ a check denominated in US dollars made
available at a foreign Financial
, According to CIP regulations a customer is Ans✓✓✓ an individual or
other entity recognize as a legal person who opens a new account
an individual who opens a new account for another individual who lacks
legal capacity
According to CIP regulations and account includes Ans✓✓✓ a deposit
transaction or asset account
a credit account or other extension of credit
our relationship to provide cash management trust and custodial services
According to fincen the Colombian Black Market peso exchange is the
most efficient and extensively used money laundering system in the
Western Hemisphere Ans✓✓✓ True
ACH transactions may involve one-time debits Ans✓✓✓ True
ACH transactions that are originated through a third party service
provider that is when the originator is not a direct customer of the odfi
may increase the bsa/aml wrist therefore making it difficult for an odfi to
under right and review originator transactions for compliance with BSA
/ AML rules Ans✓✓✓ True
All MSB should be classified as high risk accounts Ans✓✓✓ False
