AML Exam (CE)
1. The information an insurance agent must collect for customer identification purposes
depends on
a. the amount of money the customer is worth.
b. The amount of money the customer spends.
c. whether the insurance product the customer is purchasing at a low or high risk for money
laundering.
d. the size and resources of the insurance company. - ANSc. Whether the insurance product
under consideration is at a low or high risk for money laundering
2. When Tom Jensin mixes illicit and legal funds and then uses the money to purchase a new
car, he is practicing.
a. rebating
b. diversification
c. integration
d. smurfing - ANSc. integration
3. When a client gives an insurance agent $14,000 in cash for an insurance transaction, the
agent is obligated to
a. consult with a lawyer
b. file a CTR
c. call the police
d. do nothing - ANSb. file a CTR
4. Federal staff have surveyed the ABC insurance company and determined that it is in
compliance with the USA PATRIOT act of 2001 because it has all of the following Except.
a. a customer identification and verification program
b. a suspicious activity monitoring and reporting system
c. a fire safety committee
d. an employee training program. - ANSd. an employee training program
5. What has Marcela Benson done when she transfer the benefit of her insurance policy to an
apparently unrelated third party?
a. performed an unlawful transfer
b. performed a transfer by fault
c. performed a secondary transfer
d. raised a red flag for suspicious activity - ANSd.
6. Tony demarco successfully laundered $75,000 of drug money, In doing so, he went through
each of the following processes EXCEPT
a. placement
1. The information an insurance agent must collect for customer identification purposes
depends on
a. the amount of money the customer is worth.
b. The amount of money the customer spends.
c. whether the insurance product the customer is purchasing at a low or high risk for money
laundering.
d. the size and resources of the insurance company. - ANSc. Whether the insurance product
under consideration is at a low or high risk for money laundering
2. When Tom Jensin mixes illicit and legal funds and then uses the money to purchase a new
car, he is practicing.
a. rebating
b. diversification
c. integration
d. smurfing - ANSc. integration
3. When a client gives an insurance agent $14,000 in cash for an insurance transaction, the
agent is obligated to
a. consult with a lawyer
b. file a CTR
c. call the police
d. do nothing - ANSb. file a CTR
4. Federal staff have surveyed the ABC insurance company and determined that it is in
compliance with the USA PATRIOT act of 2001 because it has all of the following Except.
a. a customer identification and verification program
b. a suspicious activity monitoring and reporting system
c. a fire safety committee
d. an employee training program. - ANSd. an employee training program
5. What has Marcela Benson done when she transfer the benefit of her insurance policy to an
apparently unrelated third party?
a. performed an unlawful transfer
b. performed a transfer by fault
c. performed a secondary transfer
d. raised a red flag for suspicious activity - ANSd.
6. Tony demarco successfully laundered $75,000 of drug money, In doing so, he went through
each of the following processes EXCEPT
a. placement
