The first criminal money laundering law in the United States, the Money Laundering Control Act of 1986, is a potent tool that can be employed if the assets in question are the proceeds of at least one identified underlying crime, or a "specified unlawful activity" (SUA).
Assessors reach a conclusion regarding a nation's compliance with the FATF standard. Five potential levels of technical compliance are rated as a consequence:
‥ Obedient
‥ Generally in compliance
‥ Only partially adhering
‥ Incompliance
‥ Not relevant
Please select 4 correct answers
Banks should keep records since one of the main goals of AML regulations is to generate documentation that allows law enforcement to track down the individuals who undertake financial transactions. When confirming the identity of a customer or beneficial owner, banks should keep a record of the documents they receive, whether they are photocopies or contain information from non-documentary sources, and they should also enter all CDD data into their IT system.
The declared goals of FATF are to:
Establish guidelines and encourage the efficient application of legislative, regulatory, and operational measures to combat the funding of terrorism, money laundering, and other challenges to the integrity of the global financial system. Beginning with its members, FATF evaluates money laundering and terrorist financing methods and countermeasures, tracks how well nations are adopting the FATF Recommendations, and advocates for the adoption and application of the FATF Recommendations worldwide.
PS. FATF is not an enforcement agency, and it will never carry out the inquiry.
Please select 4 correct answers
A banking institution may be more at risk from TPPPs that serve telemarketing, online gambling, casinos, and internet retailers, as well as those that handle RCCs for these enterprises, because these industries have a significant risk of money laundering and consumer fraud.
PS. By itself, PayPal, Stripe, AliPay, and WeChat Pay do not put financial institutions at greater risk.
In the US, principal MSBs must designate a Bank Secrecy Act (BSA) Officer, provide education and training, carry out independent reviews and audits, and keep an eye on transactions for suspicious behavior in addition to having established AML policies, procedures, and internal controls.
Please select 4 correct answers
Banks should create client acceptance rules and procedures that outline the background, nationality, company operations, and other risk indicators of the customer as well as provide precise and straightforward definitions of what constitutes an acceptable customer.
Please select 3 correct answers
The following specific issues are highlighted in the paper:
‥ A KYC program's four essential components are:
1. Identification of the clientele.
2. Control of risks.
3. Customer approval.
4. Monitor.
Please select 3 correct answers
Travel agencies may be the target of money laundering in the following ways:
‥ Buying a pricey plane ticket for someone else, who then requests a refund.
‥ Arranging small-scale wire transfers to get around record-keeping obligations, particularly when the wires originate from overseas.
‥ Create networks of tour operators using fictitious reservations and paperwork to support large sums of money from international travel agencies.
Please select 3 correct answers
The article "The Use Of Online Gambling For Money Laundering And The Financing Of Terrorism Purposes" found multiple possible money laundering typologies. Here are a few instances:
‥ A money launderer conspires with the owner of an offshore online gambling business to transfer money gained from illicit activity into the gambling account and take winnings out of it. While the money launderer reports the winnings to the tax authorities and uses the money for legal purposes, the website operator retains a portion of the revenues as a commission.
‥ Professional gamblers and money launderers work together to deposit funds obtained illegally on internet gaming platforms. Before giving the launderer the remaining cash, the gamblers keep a commission on any wins.
‥ A money launderer uses a stolen identity to transfer money into an online gaming account. Using the money, he or she places bets and either wins or incurs manageable loses.
The comprehensive list of acceptable standards that FATF has provided for countries to adopt is a crucial component of its work. The 40 Recommendations, which were first released in 1990 and updated in 1996, 2003, and 2012, contain these measures.
