Crowe AML Training Session 8 FATF

Which one of the following statements is correct in respect of the FATF 40 Recommendations which state that countries should:

• . Not allow bearer shares and legal persons that are able to issue bearer shares

• Gather statistics on STRs; prosecutions and convictions; but not necessarily on other international requests for cooperation.

• Consider the feasibility of a system where banks and other financial institutions and intermediaries would report currency transactions without indicating a minimum fixed amount.

• Not approve the establishment or accept the continued operation of shell banks

In most laws criminalizing money laundering, it is stated that

• Financial institutions are not responsible for money laundering or suspicious transactions taking place within their accounts until the government places the customer on a watch list.

• Tipping off (telling customers that their accounts/ transactions are under investigation because of suspicion) is not punishable

• The dirty money undergoing money laundering will not be confiscated because of privacy laws

• Employees of financial institution who intentionally ignore clear signs of money laundering may be punished with imprisonment and/or fines

According to the FATF 40 Recommendations, “designated non-financial businesses and professions” include:( Choose the best answer)

• Casinos, real estate agents and dealers in precious stones

• Money service businesses, gatekeepers, and issuers of electronic money

• Dealers in precious metals, lawyers, commodity futures traders

• Life insurance companies, real estate agents and notaries

The FATF has consistently noted the use of casinos in money laundering schemes in its annual typologies reports. One laundering technique involving casinos is:

• Asking for winners’ checks to be made out in the name of third persons or without a payee

• Abusing casinos by circumventing its gatekeepers.

• Prepaying a casino token or chip by using funds that are already in the casino system, creating a debit balance

• Extensive gambling via multiple games throughout the casino

The General Guide to Account Opening Consultative Document published in 2015 by the Basel Committee lists information that should be obtained for the identification of “Legal Persons”. Which three items, listed below, are recommended?( Choose 3)

• Name, legal form, status and proof of incorporation of the legal person

• Permanent address of principal place of the legal person’s activities

• A report describing a visit, by the account officer, to the principal place of business

• Identity of natural persons who have authority to operate the account and who exercise control of the legal person through ownership or other means.

Which statements about FATF Recommendations are true?( Choose 3)

• FIs apply enhanced due diligence measures to business relationships and transactions with natural and legal persons, and financial institutions, from high risk countries

• If a FI suspects or has reasonable grounds to suspect that funds are the proceeds of a criminal activity, or are related to terrorist financing then it should be promptly reported to FIU

• FIs should not deal in Virtual assets

• Countries should take measures to prevent the misuse of legal persons for money laundering or terrorist financing.

FATF recommendations about MVTS. Which statements are true?( choose 3)

• MVTS are licensed or registered, and subject to effective systems for monitoring and ensuring compliance with the relevant AML &CFT measures

• MVTS provider should maintain a current list of its agents accessible by competent authorities

• MVTS provider should not appoint agents

• MVTS providers that use agents include them in their AML/CFT programmes and monitor them for compliance with these programmes.

FATF Recommendations allow MVTS to rely on third parties to perform CDD measures

• True

• False

According to FATF which customers are High Risk?( Choose 4)

• significant unexplained geographic distance between the financial institution and the customer

• Non-resident customers

• Companies that have nominee shareholders or shares in bearer form

• Customers that send wire transfers

• Business that are cash-intensive.