ANTI MONEY LAUNDERING UPDATED QUESTIONS AND CORRECT ANSWERS

ANTI MONEY LAUNDERING UPDATED
QUESTIONS AND CORRECT ANSWERS

Question:
1. You have been requested to disclose a SAR or information referenced in SAR. The agency making the
request is not FinCEN, a federal banking agency, or an appropriate law enforcement agency. You should:
Answer:
*Decline the request, and your financial institution should notify both FinCEN and its federal banking
agency*

Question:
2. The landmark law targeting money laundering is the
Answer:
*Bank Secrecy Act*

Question:
3. Structuring is a scheme money launderers use to _____________ illegal funds into the financial system.
Answer:
*Place*

Question:
4. An attempt to avoid large currency reporting by breaking a single large transaction into multiple smaller
transactions is:
Answer:
*structuring*

Question:
5. _____ includes representatives from various countries cooperating to combat money laundering.
Answer:
*FATF*

Question:
6. The USA PATRIOT Act requires financial institutions to establish due diligence and enhanced due
diligence policies to enable the financial institution to detect and report instances of money laundering
through ___________________ banking accounts.
Answer:
*Correspondent and private*

Question:
7. ______ involves moving funds around in the financial system to obscure the paper trail and sever the
link with the original illegal source
Answer:
*Layering*

, Question:
8. The reason money launderers typically deposit small amounts of money at a time is that:
Answer:
*A provision of the Bank Secrecy Act requires the filing of a CTR for transactions exceeding $10,000*

Question:
9. A CD is essentially a risk-free form of loan collateral.
Answer:
*False*

Question:
10. The purpose of money laundering is to:
Answer:
*Disguise the origin of funds derived from criminal activity*

Question:
11. OFAC requires procedures for blocking assets and accounts of an OFAC-specified country, entity, or
individual
Answer:
*True*

Question:
12. The Bank Secrecy Act (BSA) is the law that requires all bank and nonbank financial institutions:
Answer:
-Monitor customer behavior
-File reports on transactions that meet certain dollar amounts
-Maintain records of certain transactions *All of the above*

Question:
13. The process of legitimizing funds, such as through a front company, is:
Answer:
*Integration*

Question:
14. A(n) ________ banking relationship is created when an institution sells its services (such as foreign
exchange transactions, domestic or international payments, or credit) to another institution.
Answer:
*Correspondent*

Question:
15. A possible placement method lenders must be aware of is loans with short terms for permanent
mortgage financing.
Answer:
*true*