CII R01 Financial Crime Prevention 3

Question 1

What is the Sanctions and Anti-Money Laundering Act 2018?

Accepted Answer

UK legislation providing the framework for financial sanctions and AML measures post-Brexit

Answer

An EU regulation that no longer applies to the UK

Answer

A voluntary industry code of practice

Answer

An act that only applies to banks

Question 2

What is the role of the Joint Money Laundering Steering Group (JMLSG)?

Accepted Answer

To produce industry guidance on anti-money laundering and counter-terrorist financing for the UK financial sector

Answer

To prosecute money launderers

Answer

To set interest rates for banks

Answer

To manage the FSCS

Question 3

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

Accepted Answer

Terrorist financing involves providing funds for terrorism regardless of whether the funds are legitimate, while money laundering involves disguising criminal proceeds

Answer

They are the same thing

Answer

Terrorist financing only involves large amounts

Answer

Terrorist financing is not a criminal offence in the UK

Question 4

What is a 'consent SAR' (also known as a Defence Against Money Laundering or DAML)?

Accepted Answer

A SAR requesting consent from the NCA to proceed with a transaction that the reporter suspects involves criminal property

Answer

A SAR submitted with the customer's consent

Answer

A SAR that gives consent for the NCA to investigate

Answer

A voluntary SAR submitted for record-keeping purposes

Question 5

What is the 'moratorium period' when a consent SAR is submitted?

Accepted Answer

The NCA has 7 working days to refuse consent, followed by a further 31 calendar days moratorium if refused

Answer

There is no time limit

Answer

The NCA has 30 days to respond

Answer

The firm must wait 90 days before proceeding

Question 6

What is 'wilful blindness' in the context of financial crime?

Accepted Answer

Deliberately avoiding knowledge of facts that would indicate criminal activity

Answer

A visual impairment that prevents checking documents

Answer

Not being aware of AML regulations

Answer

Failing an eye test required for compliance roles