In order to protect investigative materials from disclosure when conducting an internal Investigation of any employee of a financial institution, legal counsel of that financial should________?

• A.Refuse to provide any records or documents to law enforcement because the bank has client privilege with its bank customers
• B.Request formal company authorization to conduct the investigation. Such authorization should be granted, if possible, by the board of directors or audit committee
• C.Let the bank hire any and all contract investigators to conduct the internal investigation. That way Legal is not a party to the action and may remain independent
• D.Not mark files or documents with privileged and Confidential: Attorney-Client Privilege and/or Work-Product. Those marks will only encourage law enforcement

Comment: *

Name: *

Email: *

Verification: *

What are two requirements for monitoring and reporting suspicious activity for correspondent banking according to the Wolfsberg Principles? (Choose two.)

• A.Incorporate suspicious activity monitoring into periodic reviews
• B.Incorporate due diligence results such as customer risk ratings
• C.Utilize downstream correspondents to investigate and report suspicious activity
• D.Investigate and report suspicious activity only for the correspondent bank's clients

Comment: *

Name: *

Email: *

Verification: *

Which statement is true about when an institute becomes aware that a particular employee is under investigation by law enforcement as a result of a subpoena or warrant?

• A.The employee can and should be interviewed, as well as notified of the investigation to demonstrate the seriousness of the offence and to get the employee's full attention and cooperation
• B.The institute has a duty as an employer to inform the employee he or she is under investigation by law enforcement, buy must not inform them that a warrant or subpoena has been received
• C.If an independent investigation provides grounds to interview the employee, they can be interviewed and, if necessary, terminated buy not advised that they are under investigation
• D.Under no circumstances can the employee be interviewed by the institution without the consent of law enforcement for fear of tipping the employee off

Comment: *

Name: *

Email: *

Verification: *

What is the intentional evasion of a reporting or recordkeeping requirement?

• A.Layering
• B.Money laundering
• C.Placement
• D.Structuring

Comment: *

Name: *

Email: *

Verification: *

Which transaction monitoring processes would alert a bank for red flag activity?

• A.A client who does not typically make extravagant credit card purchases books an airline ticket on a travel website.
• B.The company has a name that is similar to that of a company whose directors are named on the bank's internal blacklist.
• C.A client makes a prepayment on their credit card and a week later makes multiple cash withdrawals using an automated teller machine (ATM) in a foreign country.
• D.A charity account receives multiple electronic transfers and then sends a wire transfer to a higher-risk country.

Comment: *

Name: *

Email: *

Verification: *