AML FINAL EXAM STUDY GUIDE TEST.

AML FINAL EXAM STUDY GUIDE TEST. Insurance companies are required to file SAR with: A) FBI B) IRS C) FATF D) FinCEN - CORRECT ANSWER D) FinCEN Which of the following insurance products are not covered by AML regulations? A) an annuity contract other than a group annuities contract B) whole life insurance C) universal life insurance D) term life insurance - CORRECT ANSWER D) term life insurance A money launderer decides to borrow the money against the whole life insurance policy purchased with illicit funds. This is an illustration of which money laundering phase? A) Placement B) Layering C) Integration D) None of the above - CORRECT ANSWER C) Integration A customer deposited $11,000 in cash into his bank account. The bank must file the following: A) CTR B) SAR C) Both D) None of the above - CORRECT ANSWER A) CTR A customer deposited $50,000 in cash into his bank account during the same day from multiple branches. The bank must file the following: A) CTR B) SAR C) Both D) None of the above - CORRECT ANSWER C) Both A customer bought ten whole life insurance policies and five annuity contracts over the past year using money orders and traveler's cheques. Which phases of money laundering this activity could represent? A) Placement B) Layering C) Integration D) None of the above - CORRECT ANSWER B) Layering Which of the following statements is correct? A) AML regulations apply to all US-based insurers B) AML regulations apply only to insurers engaged within the US as a business in the issuing or underwriting of covered products. - CORRECT ANSWER B) AML regulations apply only to insurers engaged within the US as a business in the issuing or underwriting of covered products. Which of the following statements is not correct? A) Money laundering is used to hide the origin of funds. B) A large portion of funds used in terrorist financing comes from money laundering. C) Insurance companies must monitor transactions for suspicious activity possibly related to money laundering. D) Insurance agencies must monitor transactions for suspicious activity possibly related to terrorist financing. - CORRECT ANSWER D) Insurance agencies must monitor transactions for suspicious activity possibly related to terrorist financing.