CCB Financial Crime Prevention 3

Question 1

Which of the following best describes the 'loan-back' money laundering technique?

Accepted Answer

Depositing illicit funds offshore then borrowing them back as a legitimate loan

Answer

The loan-back scheme places illicit funds in an offshore account, then borrows the money back to create a seemingly legitimate paper trail.

Question 2

Under the USA PATRIOT Act, financial institutions are required to establish Customer Identification Programs (CIP). What is the minimum information required for individual customers?

Accepted Answer

Name, date of birth, address, and identification number

Answer

CIP regulations require collection of name, date of birth, address, and identification number (e.g., SSN or passport number) for individual customers.

Question 3

Which type of Politically Exposed Person (PEP) poses the HIGHEST risk and typically requires enhanced due diligence by default?

Accepted Answer

Foreign PEPs

Answer

Foreign PEPs are classified as highest risk under FATF and US regulations because they may use US financial systems to hide corruption proceeds.

Question 4

A financial institution's AML program must include which four core elements under the BSA/AML framework?

Accepted Answer

Internal controls, independent testing, a designated AML officer, and training

Answer

The BSA requires the 'four pillars': written internal controls, independent testing (audit), a designated compliance officer, and an ongoing employee training program.

Question 5

Which federal agency is the primary financial intelligence unit (FIU) in the United States that receives and analyzes SARs and CTRs?

Accepted Answer

FinCEN

Answer

The Financial Crimes Enforcement Network (FinCEN), a bureau of the US Treasury, is the US FIU responsible for collecting and analyzing BSA filings.

(CCB) Certified Compliance and Business Specialist Practice Test

(CCB) Certified Compliance and Business Specialist Practice Test

CCB Financial Crime Prevention 3