CMFAS Anti-Money Laundering 2

Question 1

What is Enhanced Due Diligence (EDD)?

Accepted Answer

Additional scrutiny applied to higher-risk customers and transactions

Answer

Regular customer verification

Answer

A simpler version of CDD

Answer

A marketing technique

Question 2

What is a Politically Exposed Person (PEP)?

Accepted Answer

An individual who holds or has held a prominent public function

Answer

A celebrity

Answer

A wealthy business person

Answer

Any government employee

Question 3

Why are PEPs considered higher risk for money laundering?

Accepted Answer

Their position of power makes them more susceptible to corruption and bribery

Answer

They earn more money

Answer

They travel more frequently

Answer

They have more bank accounts

Question 4

What is the 'tipping off' offence?

Accepted Answer

Alerting a person that they are being investigated for money laundering

Answer

Giving a tip at a restaurant

Answer

Reporting suspicious transactions

Answer

Providing investment tips

Question 5

What is the role of the Suspicious Transaction Reporting Office (STRO)?

Accepted Answer

To receive, analyse, and disseminate STRs to law enforcement

Answer

To approve bank transactions

Answer

To audit financial institutions

Answer

To issue banking licences

Question 6

What is terrorism financing?

Accepted Answer

Providing or collecting funds intended for terrorist activities

Answer

Funding legitimate businesses

Answer

Government military spending

Answer

Charitable donations