Anti-Money Laundering Flashcards

What is Enhanced Due Diligence (EDD)?

Answer: Additional scrutiny applied to higher-risk customers and transactions

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

What is a Politically Exposed Person (PEP)?

Answer: An individual who holds or has held a prominent public function

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.

Why are PEPs considered higher risk for money laundering?

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

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.

What is the 'tipping off' offence?

Answer: Alerting a person that they are being investigated for money laundering

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.

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

Answer: To receive, analyse, and disseminate STRs to law enforcement

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

What is terrorism financing?

Answer: Providing or collecting funds intended for terrorist activities

Terrorism financing involves raising, moving, or providing funds or assets that are intended to be used to support terrorist activities or organisations.