What are some useful tools or methods in conducting an internal AML investigation? Choose 3 answers

• A.Reviewing documents, particularly of relevant accounts
• B.Interviewing knowledgeable employees of the institution
• C.Exploring leads through internet searches
• D.Subpoenaing the owners of the relevant accounts

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Why do trusts established in certain offshore jurisdictions make good vehicles to launder money?

• A.Offshore jurisdictions are unfamiliar with trusts
• B.Trust are typically set up to minimize taxes
• C.Names of the settlor and beneficiaries are not publicly available
• D.Trusts may hold assets of significant size

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A bank located in Arizona is considering a loan application for a new client. The collateral for the loan is a property in Florida.
The loan will be in the name of a limited company (LLC) whose ownership is not disclosed to the bank. The LLC was established by a New York-based attorney.
The loan will be repaid by the LLC in monthly wire transfers of $9,000 which is more than the required monthly payment.
Which aspect indicates the potential for money laundering?

• A.The repayment in the amount of $9,000 indicates potential structuring
• B.The attorney associated with the account is outside the bank's lending area
• C.The collateral, a property in Florida, is not located in Arizona
• D.The LLC's ownership is not disclosed to the bank

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What do Financial Action Task Force (FATF)-style regional bodies do for their members to help combat money laundering and terrorist financing?

• A.They provide technical assistance to members in implementing FATF recommendations
• B.They assist member countries in penalizing entities that violate FATF standards and recommendations
• C.They work with members on areas of concern outside of anti-money laundering and terrorist financing
• D.They supervise member country financial institutions relating to anti-money laundering and terrorist financing

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According to the Basel Committee on Banking Supervision, banks should deal with high-risk customers by:

• A.maintaining segregated records to enable easy inspection by law enforcement in case of a subpoena.
• B.seeking approval from the board of directors before establishing the relationship.
• C.performing enhanced due diligence including enhanced ongoing monitoring of the account activity.
• D.assigning those customers to specified private bankers for better monitoring of their offshore transactions.

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