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

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

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A bank employee recently opened an account for a new restaurant. Daily cash deposits over a three-month period are close to $9,500.
What are two red flags that indicate possible money laundering or terrorist financing? (Choose two.)

• A.The restaurant is located in a different city
• B.The new account demonstrates a steady flow of income
• C.It is a new account that has daily cash deposits
• D.The daily cash deposits are so close in amount

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Which are characteristics of Mutual Legal Assistance Treaties (MLATs)? (Select Three.)

• A.MLATs are neither public nor binding under international law.
• B.MLATs cannot be used for obtaining banking records from treaty partners.
• C.MLATs do not provide a legal basis for transmitting evidence.
• D.MLATs only involve two countries.
• E.MLATs cooperatively combat crime between countries.
• F.MLATs are useful for gathering evidence and intelligence in a foreign country.

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What are the European Union Directives on Money Laundering?

• A.They require members to implement certain laws of prevent money laundering
• B.They require financial institutions to report suspicious activity to the Egmont Group in Brussels
• C.They are voluntary codes of best practice for the financial sector
• D.They are written by the Wolfsberg Group

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A bank compliance officer has implemented enhanced monitoring rules that have identified some unusual activity that may be indicative of human trafficking.
Which red flag should prompt additional transactional review?

• A.Wire transfer activity from countries with significant migrant populations
• B.Cash deposits that occur in cities where the customer resides and conducts business
• C.Cash deposits that occur in cities where the customer does not reside or conduct business
• D.Cash deposits that occur in cities where the customer does not reside or conduct business followed by same-day withdrawals

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