FERG Crowe Training

What are the three key goals of an anti-money laundering compliance program? ( Choose one)

• Prevent and detect money laundering and terrorist financing; report suspicious activity to proper authorities if the laws or regulations require it; train all pertinent employees.

• Satisfy regulatory requirements; report suspicious activity to proper authorities if the laws or regulations require it; train all pertinent employees.

• Train all pertinent employees if the laws require it; prevent money laundering; prevent terrorist financing.

• Reduce regulatory burdens; help the court systems in convicting money launderers; protect the institution

When drafting an AML policy, which of the following internal parties is most important to have approve the policy?

• Senior management

• The audit department.

• The sales team management

• The operational staff management

Salim is a compliance officer for a financial institution. Salim is looking to assess the effectiveness of the current AML program. Which of the following should Salim consider in his assessment of the program’s effectiveness?

• Sales staff surveys on AML efforts, customer due diligence error rates, quality assurance testing on STR filings

• Customer due diligence error rates, sales staff surveys on AML efforts, percent of products and services monitored for suspicious activity.

• Quality assurance testing on STR filings, sales staff surveys on AML efforts, percentage of products and services monitored for suspicious activity.

• Customer due diligence error rates, quality assurance testing on STR filings, percentage of products and services monitored for suspicious activity

When documenting ongoing training efforts, which of the following should be documented to demonstrate the distribution of the training to appropriate employees? (choose 1)

• Whether the training was provided to the board of directors.

• The topics the training addressed.

• The names and areas of the employees who took the training.

• Whether the employees who took the training passed the post-training assessment.

A financial institution’s internal audit department has found an issue with an AML process involving the AML compliance officer’s efforts to conduct sufficient account monitoring on certain products offered by the institution. The AML compliance officer should do which of the following ( Choose 1)

• Let the independent audit function remediate the issue, as they have identified it and the resolution of the issue needs to be handled independently of the compliance function

• Dispute the finding with audit, as the compliance officer should be sufficiently empowered to make all AML-related decisions for the institution.

• Develop and follow an action plan to remediate the issue and report to audit on the progress made on the issue

• Escalate the matter to the account opening team and have them make the appropriate business decision

As part of their role in fighting money laundering, financial institutions should:(choose 1)

• Designate a compliance officer

• Depend solely on The State’s staff for combating money laundering

• Refuse small cash deposits under the reporting threshold.

• Not open accounts for people from high risk jurisdictions.

Name three factors that could cause a financial institution to reassess its existing transaction monitoring system.(choose 3)

• . The launch of a new product

• The acquisition of another financial institution

• The election of a new Board of Directors

• The passage of time, e.g., 12-18 months.

Money laundering is the process by which the proceeds of criminal activity are converted into legitimate money

• True

• False

Employee training programs should ( Choose 3)

• include all existing and new employees

• be ongoing and updated to include new changes in the law and industry

• be specific to the employees duties and the services provided by the business

• should be provided by Compliance officer himself/herself

What are two legal arrangements commonly used in money laundering? ( Choose 2)

• Trusts

• LLCs

• Money services businesses

• Escrow accounts