NEW QUESTION 292
How can a financial institution verify the nature and purpose of a business and its legitimacy?

NEW QUESTION 293
An anti-money laundering officer is conducting employee reviews.
Which employee action warrants enhanced due diligence?

NEW QUESTION 294
What is the primary action a financial institution should take before formulating its anti-money laundering program?

NEW QUESTION 295
An anti-money laundering specialist working at a bank just received a legal request from a law enforcement agency mandating the release of all financial transaction records relating to an account at the bank. The specialist immediately recognizes the account as one owned by the bank Chief Executive Officer’s brother.
During research to gather the requested documents, the specialist finds several internal memos he had sent to the bank president with concerns regarding possible suspicious activity relating to this account. The specialist recalls the bank president verbally responded to each memo with an explanation of the activity and indicated there was no cause for concern. What should the specialist do with respect to these internal memos?

NEW QUESTION 296
A new customer has just been onboarded in a securities firm. After a few weeks, there are unusual trading patterns that are being flagged. Which pattern is most concerning to the compliance officer?

NEW QUESTION 297
Why would a credit card account likely not be used in the placement stage of money laundering?

NEW QUESTION 298
At a small community bank, the compliance officer identifies unusual activity on a customer, who with his personal and company accounts, is the bank’s largest depositor. The customer’s companies have significant balances on their outstanding loans. The compliance officer notices that there is a lot of unusual movements of money between the customer’s individual and business accounts. After filing a suspicious transaction report (STR), the compliance officer gets a call from law enforcement indicating that they want the bank to keep the account open while they conduct an investigation into the customer.
How should the compliance officer escalate this information to the board of directors?

NEW QUESTION 299
Which constitute red flags in connection with a company involved in illegal logging? (Select Three.)

NEW QUESTION 300
Since its last regulatory examination, a financial institution has aggressively grown by adding profitable new products and services. The institution has not historically received regulatory criticism regarding its anti-money laundering compliance program. However, a recent regulatory examination cited significant deficiencies in the anti-money laundering program that were attributed primarily to the lack of oversight by the institution’s leadership in implementing adequate controls over the new products and services.
Which area of international control should leadership first address to correct the weaknesses in the program?

NEW QUESTION 301
An anti-money laundering audit identifies a significant weakness in how transaction monitoring alerts are cleared. Audit sampling identified potentially suspicious activity that was cleared as not suspicious.
Management accepts the audit finding and develops a remediation plan.
What is the role of the auditor during the correction phase?

NEW QUESTION 302
What does the Egmont Group’s support for its members include?

NEW QUESTION 303
Which action should financial institutions with cross border correspondent banking activity be required to perform according to the Financial Action Task Force 40 Recommendations?

NEW QUESTION 304
What is the currency threshold under the European Union Fourth Anti-Money Laundering Directive?

NEW QUESTION 305
Which is an objective of the Financial Action Task Force (FATF)-Style Regional Bodies (FSRBs)?

NEW QUESTION 306
What are the regulatory risks to a bank employee who willfully violates anti-money laundering laws?

NEW QUESTION 307
Which statements relate to the mandate, roles, and responsibilities of the Financial Action Task Force (FATF) and the FATF-Style Regional Bodies (FSRBs)? (Select Two).

NEW QUESTION 308
The anti-money laundering specialist of a small bank has identified suspicious activity at a branch located in an area of town where drug dealers are known to operate. An investigation of this activity discloses that the suspicious transactions occurred within the last 3 months and were processed by the same teller (cashier). The teller (cashier) did not file an internal report of unusual activity on these transactions. When checking personnel files, the specialist finds that the teller (cashier) has been a trusted employee for over 15 years, has an impeccable work record, and has participated in several anti-money laundering training sessions. The specialist recently became aware that the employee’s daughter has contracted a rare disease and is undergoing a very expensive treatment program. Regarding the teller’s (cashier’s) failure to report the unusual activity to the institution, the specialist should recommend

NEW QUESTION 309
What is the term for trading through multiple accounts, where an individual generates offsetting profits and losses and transfers of positions through accounts that do not appear to be commonly controlled?

NEW QUESTION 310
The line of business is responsible for creating, implementing and maintaining policies and procedures, as well as communicating these to all personnel. It must also establish processes for screening employees to ensure high ethical and professional standards and deliver appropriate training on AML policies and procedures based on roles and functions performed so employees aware of their responsibilities. To facilitate this, employees should be trained as soon as possible after being hired, with refresher training as appropriate.
To guard against acquisition or control of a financial institution by money launderers or their associates, what should supervisory agencies require?

NEW QUESTION 311
What are three elements of a sound Customer Due Diligence Program?

NEW QUESTION 312
A client who owns a swimming pool company requests to open 19 accounts at a bank, each with a debit card for its swimming pool technicians. When asked about the purpose of each account, the client explains that each technician needs a separate checking account to purchase pool chemicals.
Which available source could be used in the bank’s internal investigation on this client’s activities?

NEW QUESTION 313
What do Financial Action Task Force (FATF)-style regional bodies do for their members to help combat money laundering and terrorist financing?

NEW QUESTION 314
The compliance officer for a bank is reviewing on-boarding documents for a new business account for a domestic corporation. The officer is unable to verify the identity of the beneficial owners of the company. Only information on the nominee owners was provided, and none of the listed addresses are local. The purpose of the business and future expected activity was disclosed to include cash letters, money orders and international remittance transfers.
Which red flag identifies a heightened money laundering risk?

NEW QUESTION 315
According to the Financial Crimes Enforcement Network, after an initial suspicious activity report has been filed for a customer, a financial institution must perform a continuing review of the account for a period of how many days?