AML EXAM 2 QUESTIONS WITH 100% CORRECT ANSWERS

AML EXAM 2 QUESTIONS WITH 100% CORRECT ANSWERS The Office of Foreign Assets Control (OFAC) is allowed to impose sanctions against certain foreign countries. A. True B. False - answerA The Financial Action Task Force (FATF) is best known for what? A. Passing EU-Wide laws and policies on AML B. Issuing AML/CTF recommendations for countries to follow C. Having several subgroups D. Establishing the definition of counter terrorist financing - answerB The Third EU Directive defined "money laundering" and "terrorist financing" as separate crimes. A. True B. False - answerA The European Union's First EU Directive focused primarily on what issue? A. Terrorist financing B. Structuring C. Drug trafficking D. Casinos - answerC There are ten FATF-style regional bodies (FSRBs) that have similar form and functions to those of FATF. A. True B. False - answerB Section 311 of the Act provides for the potential designation of what three kinds of "primary money laundering concern"? A. Foreign account B. Foreign transaction C. Foreign politically exposed person D. Foreign jurisdiction - answerA,B,D The Wolfsberg Group was formed to provide a forum for financial intelligence units around the world to improve cooperation in the fight against money laundering and financing of terrorism. A. True B. False - answerB What are three suggestions articulated by FATF? A. That is appropriate to have good customer due diligence procedures B. That it is appropriate to require suspicious activity reporting C. That it is appropriate to criminalize money laundering and the financing of terrorism. D. That it is important never to allow numbered accounts - answerA,B,C The Fourth EU Directive decreed that customer due diligence was to be applied for transfers of funds exceeding EUR 10,000. A. True B. False - answerB The United Nations' Palermo Convention expanded on the Vienna Convention by doing what three things? A. Expanding the scope of when identification and confiscation of the proceeds of crime should be used B. Expanding the number of elements making up the definition of money laundering C. Expanding the coverage of the convention to include issues other than drug trafficking D. Expanding the coverage of the convention to include organized crime - answerA,C,D FATF fulfills its stated objectives by monitoring implementation of the FATF Recommendations among its members through _______________________ and _____________. A. risk assessment; compliance assessment B. international cooperation; law enforcement C. compliance assessment; effectiveness assessment D. technical compliance assessment; institutional framework assessment technical - answerC The Basel Committee's paper on "Customer Due Diligence for Banks" specifies that the four key elements of a KYC program are: 1. Customer identification 2. Risk mitigation 3. Employee training 4. Geographic diversification A. True B. False - answerB Which of the following statements is T