CSCP Anti-Money Laundering & Financial Crimes 3

Question 1

What is the primary purpose of the Financial Action Task Force (FATF)?

Accepted Answer

To set global standards and promote effective implementation of AML and counter-terrorism financing measures

Answer

To regulate U.S. broker-dealers and investment advisers

Answer

To prosecute financial crimes in federal court

Answer

To manage the OFAC sanctions list

Question 2

Which of the following is considered a 'red flag' for potential securities fraud or market manipulation in an AML context?

Accepted Answer

Trading in thinly traded securities with sudden unexplained volume spikes followed by rapid liquidation

Answer

A customer who frequently reviews their account statements

Answer

A customer who diversifies across multiple asset classes

Answer

Routine dividend reinvestment by long-term investors

Question 3

Under the BSA, what is the minimum dollar amount for a suspicious transaction that a broker-dealer must consider for SAR filing?

Accepted Answer

$5,000

Answer

$2,000

Answer

$10,000

Answer

$25,000

Question 4

The term 'beneficial owner' in AML compliance most accurately refers to:

Accepted Answer

The natural person who ultimately owns or controls a customer account or legal entity

Answer

The registered agent of a corporate entity

Answer

The compliance officer responsible for AML oversight

Answer

A customer who receives preferential interest rates

Question 5

When an AML investigation reveals that a SAR has been filed on a customer, which of the following actions is strictly prohibited?

Accepted Answer

Notifying the subject of the SAR that it was filed

Answer

Retaining SAR records for five years

Answer

Sharing the SAR with law enforcement upon request

Answer

Reviewing the SAR for accuracy before submission

Question 6

Which of the following scenarios BEST illustrates the 'integration' stage of money laundering?

Accepted Answer

Purchasing real estate with laundered funds and then selling it at market value

Answer

Depositing drug proceeds into a bank account in small increments

Answer

Transferring funds through multiple offshore accounts in different countries

Answer

Converting cash into casino chips and then cashing them out

Question 7

A broker-dealer's AML program must include ongoing employee training. According to FINRA Rule 3310, this training must be provided:

Accepted Answer

On an ongoing basis

Answer

Once, during employee onboarding only

Answer

Annually, as mandated by FinCEN

Answer

Only to employees in the compliance department