AML EXAM 1 QUESTIONS WITH 100% CORRECT ANSWERS

AML EXAM 1 QUESTIONS WITH 100% CORRECT ANSWERS 3 Stages of Money Laundering - answer1. Placement 2. Layering 3. Integration Three things that might be done during the course of laundering money. - answera. Depositing money into a bank account b. Buying high-end goods c. Sending money abroad T/F Accepting money derived from illegal sources makes you an accomplice to money laundering. - answerTrue What is the goal of the Placement stage? - answerGetting the money into the financial system. What is the ultimate purpose of ML? - answerTo make it appear that the funds are legitimate. Examples of economic consequences of ML - answer1. Increased exposure to organized crime and corruption 2. Dampening effect on foreign investments 3. Risk of international sanctions 3 ML risks to Financial Institutions - answer1. Reputational 2. Operational 3. Legal Structuring is usually a process associated with which stage in ML? - answerPlacement Examples of ML in banks - answer1. Bank accounts 2. Concentration accounts 3. Correspondent accounts 4. Electronic funds transfer 5. Payable through-accounts 6. Private banking Vulnerabilities of ML in Correspondent banking - answer- Correspondent banking relationships create a situation in which a financial institution carries out transactions on behalf of customers of another institution. - The amount of money that flows through correspondent accounts can pose a significant threat to financial institutions, as they process large volumes of transactions for their customers' customers. Examples of ML in non-bank financial institutions - answer1. Credit and Debit cards 2. Money remitters / Money exch