What are two requirements of United States financial institutions when conducting business with an international institution as a result of the USA PATRIOT Act? (Choose two.)

• A.Performing due diligence on correspondent accounts
• B.Visiting the head office of the international financial institution
• C.Performing enhanced due diligence on shell banks
• D.Complying with Special Measures issued under the USA PATRIOT Act

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A compliance officer at an insurance company has been reviewing the transaction activity of several clients.
Which transaction is considered a red flag for potential money laundering?

• A.A client paid the quarterly life insurance premium using money orders from two different banks.
• B.A client from a high-risk jurisdiction recently purchased property insurance for a real-estate development.
• C.A corporation owns several affiliates and recently opened separate group life insurance policies for each of the affiliates.
• D.A client established a $100,000 charitable annuity with a non-profit organization that provides health and safety assistance internationally.

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What is a key risk associated with Correspondent Accounts according to the Basel Customer Due Diligence paper?

• A.It is not used on a daily basis
• B.The service fees are insufficient to cover the cost of managing the account
• C.The respondent bank's customer acceptance and know your customer policies are ineffective
• D.The volume and value of transactions passing through the account may not be in line with the original correspondent agreement

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According to experts, what is the most effective way to prevent money laundering through financial institutions?

• A.Ensuring that transaction monitoring systems can identify terrorist financing
• B.Collecting information on beneficial owners and foreign customers
• C.Instituting a policy prohibiting the acceptance of funds intended for terrorist financing
• D.Implementing a sound customer due diligence program

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Financial Intelligence Units (FIUs) are responsible for:

• A.the timely dissemination of cases to law enforcement agencies.
• B.responding to requests from law enforcement agencies for information contained in regulatory reports.
• C.sharing evidence with other FIUs.
• D.receiving confirmed reports about committed crimes from accountable and reporting institutions.

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