QUESTION 51
Law enforcement submitted a request to a bank for information regarding one of its customers.
How should the bank respond according to Financial Action Task Force Guidance?

QUESTION 52
What indicates potential money laundering activity by a lawyer?

QUESTION 53
Bank A is a non-United States (U.S.) bank that has $5 million in a correspondent account at a bank in New York City. The Worldwide Terrorist Syndicate (WTS) has $1 million in its account at a non-US branch of Bank A.
The U.S. government has initiated forfeiture action against the WTS.
Which potential action can the U.S. take under the USA PATRIOT ACT pursuant to the issuance seizure warrant?

QUESTION 54
According to the Financial Action Task Force 40 Recommendations, Designated Non-Financial Businesses and Professionals include which entities?

QUESTION 55
You plan to build an application that will perform predictive analytics. Users will be able to consume the application data by using Microsoft Power BI or a custom website.
You need to ensure that you can audit application usage.
Which auditing solution should you use?

QUESTION 56
A Money Laundering Reporting Officer’s (MLRO) lack of action led to deficiencies in the bank’s AML program and a civil monetary penalty being levied against the MLRO. Why was this direct action taken against the MLRO?

QUESTION 57
What are two reasons physical certificates present a money laundering risk to broker-dealers? (Choose two.)

QUESTION 58
A large United States (U.S.) bank is performing due diligence on a non-U.S. bank. The non-U.S. bank has applied for a correspondent account at the U.S. bank.
Which two steps should the U.S. bank take under the USA PATRIOT Act? (Choose two.)

QUESTION 59
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?

QUESTION 60
After several months of research, the Director of Marketing and the Managing Director of Business Development received approval to launch a branded, stored-value card that will be marketed to the diverse, primarily non-resident population that comprises the bank’s current customer demographics. The Chief Credit Officer and the Risk Officer have also been involved in the efforts to develop the card. After the card is launched, the anti-money laundering officer is consulted. The anti-money laundering officer should advise the bank that compliance should have been involved

QUESTION 61
What do the Financial Action Task Force (FATF) mutual evaluations of each member assess?

QUESTION 62
What can a compliance officer do in the absence of automated software to conduct U.S. Department of the Treasury Office of Foreign Assets Control (OFAC) sanction screens?

QUESTION 63
An anti-money laundering specialist is employed by a large multi-national bank. The bank is planning to open an international department that will be responsible for expanding services to various countries. The head of the new international department has asked specialist to assess risks associated with the bank’s expansion plans. What three set of materials should be included as a reference? Choose 3 answers

QUESTION 64
A compliance officer at an insurance company has been reviewing the transaction activity of several clients.
Which transaction is considered a red flag for potential money laundering?

QUESTION 65
Which is a FATF characteristic used to assess a country’s effectiveness of its AML regime?

QUESTION 66
Which of the following customer transactions with a securities dealer would indicate the highest suspicion of money laundering?

QUESTION 67
A bank located in Arizona is considering a loan application for a new client. The collateral for the loan is a property in Florida.
The loan will be in the name of a limited company (LLC) whose ownership is not disclosed to the bank. The LLC was established by a New York-based attorney.
The loan will be repaid by the LLC in monthly wire transfers of $9,000 which is more than the required monthly payment.
Which aspect indicates potential for money laundering?

QUESTION 68
A bank has maintained an account for a European charity for several years. The charity provides clothing to persons in need in various countries with active terrorists’ cells.
Which action by the charity indicates possible terrorist financing?