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

EDD involves additional verification measures and ongoing monitoring applied to customers or transactions that present a higher risk of money laundering.

Question 2

What is a Politically Exposed Person (PEP)?

Accepted Answer

An individual who holds or has held a prominent public function

Answer

A PEP is someone who currently holds or has recently held a prominent public function (e.g., head of state, senior politician, military leader), posing a higher risk due to their position.

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

PEPs are considered higher risk because their positions of influence and power may make them more vulnerable to corruption, bribery, and the laundering of ill-gotten gains.

Question 4

What is the 'tipping off' offence?

Accepted Answer

Alerting a person that they are being investigated for money laundering

Answer

Tipping off is a criminal offence where someone informs a person that a suspicious transaction report has been filed or that an investigation is underway.

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

STRO receives STRs from reporting entities, analyses them for patterns and connections, and disseminates intelligence to relevant law enforcement agencies.

CMFAS Practice Test

CMFAS Practice Test

CMFAS Anti-Money Laundering 2