AML Exam Anti-Money Laundering WebCE/AML Exam Anti-Money Laundering WebCE All CHapter questions and Exam Questions Newest 202/2026 100% VERIFIED

AML Exam Anti-Money Laundering
WebCE/AML Exam Anti-Money Laundering
WebCE All CHapter questions and Exam
Questions Newest 202/2026 100% VERIFIED
During which stage of the money laundering process are laundered or cleansed funds circulated
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back into the hands of the criminal and ultimately into the financial system?
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Il` a. closet
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Il` b. placement
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Il` c. layering
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Il` d. integration - Correct Answers d. integration
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That's correct! The final stage in the money laundering process is called integration. Here, the
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cleansed money is circulated back into the hands of the criminal and ultimately into the financial
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system.
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Il` Insurance companies are not required to establish anti-money laundering programs, though they
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Il` are encouraged to do so.
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Il` a. True
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Il` b. False - Correct Answers b. False
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That's correct! Title III of the PATRIOT Act specifically addresses money laundering and expands
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the Bank Secrecy Act to encompass all financial institutions, including life insurance companies.
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The Act's inclusion of insurance companies recognized the simple fact that some insurance
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products were being used in money laundering schemes.
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, Il` A customer has purchased over a dozen life insurance and annuity contracts over the past year,
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Il` using cashier's checks to pay the premiums. If this action is part of a money laundering operation,
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Il` which stage does it represent? Il` Il` Il` Il`




Il` a. acquisition
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Il` b. placement
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Il` c. layering
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Il` d. integration - Correct Answers c. layering
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That's correct! Money laundering is a process that moves illegal money through three stages on its
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way to apparent legitimacy: placement, layering, and integration. The second stage, layering, is
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achieved by using cash or cash equivalents to purchase multiple financial instruments that can
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subsequently be converted into clean money.
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Il` All of the following are federal laws or related rulings that have a direct impact on anti-money
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Il` laundering requirements EXCEPT: Il` Il`




Il` a. the Bank Secrecy Act of 1970
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Il` b. the Fair Credit Reporting Act of 1972
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Il` c. the USA PATRIOT Act of 2001
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Il` d. the FinCEN final rules published November 2005 - Correct Answers b. the Fair Credit
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Il` Reporting Act of 1972 Il` Il` Il`




That's correct! The USA PATRIOT Act expands the AML directives of the Bank Secrecy Act, and
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FinCEN's final rules amended the USA PATRIOT Act to address the insurance company needs. The
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FCRA does not directly relate to money laundering.
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Il` Under FinCEN's final rules as they apply to insurance companies, agents and brokers are required
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Il` to establish and maintain their own AML programs and procedures.
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