AML

Politically Exposed Persons (PEPs) are identified as higher risk clients as they have been entrusted with a prominent public function. A PEP generally presents a higher risk for potential involvement in bribery and corruption by virtue of their position and the influence that they may hold. Click on the PEPs stated below (more than 1)

• Heads of government or heads of state.

• Social media influencers with 1,000,000+ followers

• Top military or judicial officials.

• Premiership footballers

• Senior politicians and government officials.

Identify below the three stages of money laundering of which you should inform your firm's "nominated officer" when discover evidence of the same ? 

• Intergration

• Depositing money in firm's client account

• Identity Fraud

• Placement

• Layering

Inspired by the TV program with the little blue people, what is ‘Smurfing’?

• Smurfing is a money-laundering technique involving the structuring of large amounts of cash into multiple small transactions.

• Smurfing is smuggling cash to foreign jurisdiction with less onerous AML regulations.

• Smurfing is a money-laundering technique involving post offices

• Smurfing is a money-laundering technique involving little blue people

• Smurfing is money-laundering technique where OCG's buy control of a bank in a country with less onerous AML regulations & launder their criminal proceeds through that bank

What is a source of funds check ?

• It is checking the transaction type (i.e. bank transfer, cheque, cash)

• It is checking where the specific money for a transaction has come from (eg salary, gift, investment profit).

• It is checking that the client has the amount of money required to fulfill the transaction.

• It is checking that the clients funds have cleared in your firms client account

Which of the following may be an indicator of money laundering?

• Paying by credit card

• Expensive policies being taken out and then cancelled

• Insurance being taken out on property

• Money being withdrawn from different cash machines

Which of the following answers is the best definition of a suspicious transaction?

• A transaction that is unusually complex

• A transaction that is inconsistently large

• A transaction that is unusually large

• A transaction that is inconsistent with the client's known legitimate business, personal activities, or type of client

1. Which of the following may suggest a high degree of ML/TL risk?

• a. Source of funds is difficult to verify

• b. Funds deposited in the customer’s account come from one or two sources

• c. Funds sourced from companies or accounts in low ML/TF risk countries

• d. Customers has employment-based income

9. What are the two main components of CDD?

• a. Performing ongoing monitoring of customers and their transactions

• b. Declaring any conflicts of interest, including potential conflicts of interest

• c. Collecting and verifying identification information

• d. Notifying customers of any red flags they have triggered and AML/CTF reports made about them.

17. This refer to a person who is or who has been entrusted with prominent public functions, such as head of State or heads or government, members of parliament and members of any court or judicial body?

• a. Special Interest Persons (SIPs)

• b. Special Interest Entities (SIEs)

• c. Politically Exposed Persons (PEPs)

• d. Casino Operators

18. This means revealing to any person any information which may prejudice an investigation refers to?

• a. Tipping Off

• b. Enhance Due Diligence

• c. Customer Due Diligence

• d. Tapping Off