AML EXAM
Which of the following is the most common method of laundering money through
a legal money services business?
a. exchange currency and remitting money
b. smuggling bulk cash
c. transferring funds through payable through accounts
d. exchanging Colombian pesos on the black market - ANSWERS-a
Which statement is true?
a. systemic weaknesses in free trade zones include inadequate AML/CFT
safeguards, minimal oversight by local authorities and weak procedures to inspect
goods
b. cuckoo smurfing is a significant money laundering technique
c. In its 40 recommendations
d. E-cash is not attractive to the money launderer - ANSWERS-a
Which two activities are typically associated with the black market peso exchange
money laundering system?
a. converting illicit drug proceeds from dollars to euros to Colombian pesos
b. converting illicit drug proceeds from Colombian pesos to dollars or euros
c. facilitating purchases by Colombian importers of goods manufactured in the US
or Europe through peso brokers
, d. facilitating purchases by European or US importers of good manufactured in
Colombia through peso brokers - ANSWERS-a,c
What is considered a beneficial owner of an account?
a. person or entity who has direct signatory authority over an account and whose
name appears on the account
b. person or entity who is ultimately entitled to the funds in the account, even
through his or her name may not appear on the account
c. person or entity who is the originator and the destination of most transactions
conducted within the account but who does not ultimately control such funds
d. person or entity who is a gatekeeper, has the legal title to the account and
typically transfers the funds to a trust - ANSWERS-b
Which statement is true regarding the risk of politically exposed persons? (PEPS)
a. provide access to third parties
b. have significantly greater exposure to the politically corrupt funds
c. are foreign customers who inherently present additional risk
d. generally do not pose enhanced risks to an institution due to their political
standing - ANSWERS-b
trade based money laundering requires the ability to _______
a. over or under invoice the goods
b. sell the imported goods for as little as possible
c. use goods that do not need to be declared
Which of the following is the most common method of laundering money through
a legal money services business?
a. exchange currency and remitting money
b. smuggling bulk cash
c. transferring funds through payable through accounts
d. exchanging Colombian pesos on the black market - ANSWERS-a
Which statement is true?
a. systemic weaknesses in free trade zones include inadequate AML/CFT
safeguards, minimal oversight by local authorities and weak procedures to inspect
goods
b. cuckoo smurfing is a significant money laundering technique
c. In its 40 recommendations
d. E-cash is not attractive to the money launderer - ANSWERS-a
Which two activities are typically associated with the black market peso exchange
money laundering system?
a. converting illicit drug proceeds from dollars to euros to Colombian pesos
b. converting illicit drug proceeds from Colombian pesos to dollars or euros
c. facilitating purchases by Colombian importers of goods manufactured in the US
or Europe through peso brokers
, d. facilitating purchases by European or US importers of good manufactured in
Colombia through peso brokers - ANSWERS-a,c
What is considered a beneficial owner of an account?
a. person or entity who has direct signatory authority over an account and whose
name appears on the account
b. person or entity who is ultimately entitled to the funds in the account, even
through his or her name may not appear on the account
c. person or entity who is the originator and the destination of most transactions
conducted within the account but who does not ultimately control such funds
d. person or entity who is a gatekeeper, has the legal title to the account and
typically transfers the funds to a trust - ANSWERS-b
Which statement is true regarding the risk of politically exposed persons? (PEPS)
a. provide access to third parties
b. have significantly greater exposure to the politically corrupt funds
c. are foreign customers who inherently present additional risk
d. generally do not pose enhanced risks to an institution due to their political
standing - ANSWERS-b
trade based money laundering requires the ability to _______
a. over or under invoice the goods
b. sell the imported goods for as little as possible
c. use goods that do not need to be declared
