CCO Anti-Money Laundering and Financial Crimes 3

Question 1

What is the Financial Action Task Force (FATF)?

Accepted Answer

An intergovernmental body that sets international AML and counter-terrorist financing standards

Answer

A US federal law enforcement agency

Answer

A private banking association

Answer

A United Nations subcommittee on sanctions

Question 2

What is beneficial ownership in AML compliance?

Accepted Answer

The natural person(s) who ultimately own or control a legal entity, even if ownership is indirect

Answer

The legal owner of a corporation as shown in public filings

Answer

The largest shareholder by share count

Answer

The registered agent of a company

Question 3

Under FinCEN's Customer Due Diligence rule, covered financial institutions must identify beneficial owners holding what percentage or more of a legal entity?

Accepted Answer

25%

Answer

10%

Answer

50%

Answer

5%

Question 4

What is terrorist financing and how does it differ from money laundering?

Accepted Answer

Terrorist financing funds violent acts and can involve legitimate money moved for criminal purposes, while money laundering conceals illegally obtained funds

Answer

They are identical processes

Answer

Terrorist financing only involves foreign currencies

Answer

Money laundering always involves larger sums than terrorist financing

Question 5

What is the role of an AML compliance officer?

Accepted Answer

To oversee the AML program, ensure regulatory compliance, conduct training, and act as liaison with regulators and law enforcement

Answer

To approve all customer transactions personally

Answer

To serve as a customer relationship manager

Answer

To manage the bank's investment portfolio

Question 6

What is a 'red flag' in AML monitoring?

Accepted Answer

An indicator of potentially suspicious activity that warrants further review

Answer

A mandatory stop on all transactions

Answer

A customer complaint requiring immediate resolution

Answer

A declined payment notification