AML EXAM 3
What are 3 red flags with regard to cash transactions? - ANSWERS-1. customers
making frequent purchases of monetary instruments just under the reporting
requirements
2. large amounts of cash being deposited and wired to a foreign country
3. large cash transactions in excess of what is normal for the customer's line of
business
The BSA officer of an institution should have what 3 attributes? - ANSWERS-1. be
answerable only to the institution's board of directors or one of its committees
2. be well-trained in the area of AML
3. be capable of investigating red flags that emerge
What are 3 red flags in regard to employee behavior? - ANSWERS-1. wants to
work in the private banking area of the bank
2. frequently overrides internal controls
3. takes foreign trips on a regular basis for non-bank business
What 3 events would trigger a filing of a report? - ANSWERS-1. a large wire
transfer
2. a suspicious transaction
3. a large cash transaction
, When completing a risk assessment, determining the countries where the bank's
major customers do business in is not an important factor - ANSWERS-false
In completing a comprehensive risk assessment, what are 3 products that may
present a higher ML risk? - ANSWERS-1. wire transfers
2. payable through accounts
3. private banking
The overall AML policy of an institution should be detailed and should set forth
the specific duties of all AML staff - ANSWERS-true
In completing a comprehensive risk assessment, what 3 types of customers may
present a higher risk for ML? - ANSWERS-1. car dealerships
2. cash intensive businesses
3. travel agencies
What 3 groups in an institution should receive AML training? - ANSWERS-1. The
AML group
2. the senior staff
3. the board of directors
According to the AML risk categories, __ customers may include PEPs or certain
types of MSBs or cash intensive businesses - ANSWERS-High risk
What are 3 red flags with regard to cash transactions? - ANSWERS-1. customers
making frequent purchases of monetary instruments just under the reporting
requirements
2. large amounts of cash being deposited and wired to a foreign country
3. large cash transactions in excess of what is normal for the customer's line of
business
The BSA officer of an institution should have what 3 attributes? - ANSWERS-1. be
answerable only to the institution's board of directors or one of its committees
2. be well-trained in the area of AML
3. be capable of investigating red flags that emerge
What are 3 red flags in regard to employee behavior? - ANSWERS-1. wants to
work in the private banking area of the bank
2. frequently overrides internal controls
3. takes foreign trips on a regular basis for non-bank business
What 3 events would trigger a filing of a report? - ANSWERS-1. a large wire
transfer
2. a suspicious transaction
3. a large cash transaction
, When completing a risk assessment, determining the countries where the bank's
major customers do business in is not an important factor - ANSWERS-false
In completing a comprehensive risk assessment, what are 3 products that may
present a higher ML risk? - ANSWERS-1. wire transfers
2. payable through accounts
3. private banking
The overall AML policy of an institution should be detailed and should set forth
the specific duties of all AML staff - ANSWERS-true
In completing a comprehensive risk assessment, what 3 types of customers may
present a higher risk for ML? - ANSWERS-1. car dealerships
2. cash intensive businesses
3. travel agencies
What 3 groups in an institution should receive AML training? - ANSWERS-1. The
AML group
2. the senior staff
3. the board of directors
According to the AML risk categories, __ customers may include PEPs or certain
types of MSBs or cash intensive businesses - ANSWERS-High risk
