1
AML EXAM ANTI-MONEY LAUNDERING
WEBCE (AML EXAM ANTI-MONEY
LAUNDERING WEBCE ALL CHAPTER
QUESTIONS AND CORRECT ANSWERS
During which stage of the money laundering process are laundered or
cleansed funds circulated back into the hands of the criminal and ultimately
into the financial system?
a. closet
b. placement
c. layering
d. integration
Ans: d. integration
That's correct! The final stage in the money laundering process is called
integration. Here, the cleansed money is circulated back into the hands of
the criminal and ultimately into the financial system.
Insurance companies are not required to establish anti-money laundering
programs, though they are encouraged to do so.
a. True
b. False
,2
Ans: b. False
That's correct! Title III of the PATRIOT Act specifically addresses money
laundering and expands the Bank Secrecy Act to encompass all financial
institutions, including life insurance companies. The Act's inclusion of
insurance companies recognized the simple fact that some insurance
products were being used in money laundering schemes.
A customer has purchased over a dozen life insurance and annuity
contracts over the past year, using cashier's checks to pay the premiums. If
this action is part of a money laundering operation, which stage does it
represent?
a. acquisition
b. placement
c. layering
d. integration
Ans: c. layering
That's correct! Money laundering is a process that moves illegal money
through three stages on its way to apparent legitimacy: placement, layering,
and integration. The second stage, layering, is achieved by using cash or
cash equivalents to purchase multiple financial instruments that can
subsequently be converted into clean money.
All of the following are federal laws or related rulings that have a direct
impact on anti-money laundering requirements EXCEPT:
, 3
a. the Bank Secrecy Act of 1970
b. the Fair Credit Reporting Act of 1972
c. the USA PATRIOT Act of 2001
d. the FinCEN final rules published November 2005
Ans: b. the Fair Credit Reporting Act of 1972
That's correct! The USA PATRIOT Act expands the AML directives of the Bank
Secrecy Act, and FinCEN's final rules amended the USA PATRIOT Act to
address the insurance company needs. The FCRA does not directly relate to
money laundering.
Under FinCEN's final rules as they apply to insurance companies, agents and
brokers are required to establish and maintain their own AML programs and
procedures.
a. True
b. False
Ans: b. False
That's correct! Agents and brokers are not required to establish separate AML
programs; however, as integral as they are to the insurance business and the
insurance sales process, they have an important role to play in assisting their
companies with AML efforts.
As part of the life insurance application process in compliance with AML
requirements, producers are required to obtain all of the following
information EXCEPT:
AML EXAM ANTI-MONEY LAUNDERING
WEBCE (AML EXAM ANTI-MONEY
LAUNDERING WEBCE ALL CHAPTER
QUESTIONS AND CORRECT ANSWERS
During which stage of the money laundering process are laundered or
cleansed funds circulated back into the hands of the criminal and ultimately
into the financial system?
a. closet
b. placement
c. layering
d. integration
Ans: d. integration
That's correct! The final stage in the money laundering process is called
integration. Here, the cleansed money is circulated back into the hands of
the criminal and ultimately into the financial system.
Insurance companies are not required to establish anti-money laundering
programs, though they are encouraged to do so.
a. True
b. False
,2
Ans: b. False
That's correct! Title III of the PATRIOT Act specifically addresses money
laundering and expands the Bank Secrecy Act to encompass all financial
institutions, including life insurance companies. The Act's inclusion of
insurance companies recognized the simple fact that some insurance
products were being used in money laundering schemes.
A customer has purchased over a dozen life insurance and annuity
contracts over the past year, using cashier's checks to pay the premiums. If
this action is part of a money laundering operation, which stage does it
represent?
a. acquisition
b. placement
c. layering
d. integration
Ans: c. layering
That's correct! Money laundering is a process that moves illegal money
through three stages on its way to apparent legitimacy: placement, layering,
and integration. The second stage, layering, is achieved by using cash or
cash equivalents to purchase multiple financial instruments that can
subsequently be converted into clean money.
All of the following are federal laws or related rulings that have a direct
impact on anti-money laundering requirements EXCEPT:
, 3
a. the Bank Secrecy Act of 1970
b. the Fair Credit Reporting Act of 1972
c. the USA PATRIOT Act of 2001
d. the FinCEN final rules published November 2005
Ans: b. the Fair Credit Reporting Act of 1972
That's correct! The USA PATRIOT Act expands the AML directives of the Bank
Secrecy Act, and FinCEN's final rules amended the USA PATRIOT Act to
address the insurance company needs. The FCRA does not directly relate to
money laundering.
Under FinCEN's final rules as they apply to insurance companies, agents and
brokers are required to establish and maintain their own AML programs and
procedures.
a. True
b. False
Ans: b. False
That's correct! Agents and brokers are not required to establish separate AML
programs; however, as integral as they are to the insurance business and the
insurance sales process, they have an important role to play in assisting their
companies with AML efforts.
As part of the life insurance application process in compliance with AML
requirements, producers are required to obtain all of the following
information EXCEPT:
