Which statement about a multinational institution's ability to fully investigate unusual activity in all its foreign operations is correct?

• A.The institution should consult with the customer and request permission to conduct a full investigation into all the accounts.
• B.Enterprise-wide compliance oversight rules issued in the global institution's headquarters country will override any local limitations in other countries.
• C.Certain account documents may be stored only in local language which will prohibit a global assessment.
• D.Local privacy and data protection laws may prevent an affiliate from sharing information.

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An anti-money laundering officer for a financial institution has been conducting a monthly self assessment.
The officer reviews the accounts increase in compliance with a long standing know your Customer policy. The self-assessment for the latest month shows a significant increase in compliance deficiencies for the first time in more than a year. What is the nest course of action for the anti-money laundering officer to take?

• A.Revise the policy to simplify Know Your Customer compliance before the report is issued
• B.Inform the Board of Directors promptly of the Know Your Customer policy trend over the last six months.
• C.Determine if there is a readily identifiable cause for the deficiencies
• D.Implement a revision to the account-opening training program

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According to the Financial Action Task Force Special Recommendations on Terrorist Financing, which of the following should an anti-money laundering specialist do if the specialist has reasonable grounds to suspect funds are linked or related to terrorist acts?

• A.Inform the institution's managing Board.
• B.Promptly report to the competent authority.
• C.Contact the institution's legal advisor.
• D.Conduct a full due diligence review of the client.

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Which three statements are true regarding the extraterritorial reach of laws and legislation of the U.S.?

• A.Economic and trade sanctions by OFAC may pose extraterritorial risks for financial institutions and businesses outside the U.S.
• B.The defendant does not need to know the funds came from an illegal activity under state, federal or foreign law
• C.The extraterritorial reach covers all transactions throughout the global economy
• D.The criminal anti-money laundering law can apply to transactions that occur partially overseas

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A financial institution has expanded its scope of services so that it is attracting the business of politically exposed persons (PEPs) who had previously never been part of the customer base.
Which two courses of action should the compliance officer include in the institution's procedures for considering PEPs as customers? (Choose two.)

• A.Take adequate measures to establish the source of wealth and source of funds which are involved in the business relationship or occasional transaction
• B.Expedite due diligence when a PEP is pre-approved by a member of senior management
• C.Conduct enhanced ongoing monitoring of the business relationship
• D.Obtain appropriate senior management approval for establishing a business relationship with a PEP from a high risk country

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