ACAMS Quiz 16 Topic 2 Questions 76-80

Question: 1

In May 2002, the Wolfsberg Principles on Private Banking were revised and included a section that prohibits the use of internal non-client accounts in a manner that would prevent officials from appropriate monitoring movements of funds or keep clients from being linked to the movement of funds on their behalf.

What is another name for these internal, non-client accounts?

ATrust accounts

BCorrespondent accounts

CConcentration accounts

DPay through accounts

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Question: 2

Why do government entities around the world believe that a risk-based approach to AML/CFT compliance is a preferable prescriptive measure?

AIt is easier for examiners to make subjective criticisms

BIt is more flexible, effective and proportionate

CIt allows institutions to focus their attention on only high risk customers

DIt allows the creation of hard and fast rules that must be followed

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Question: 3

What should be part of an institution's monitoring and STR filing process? Choose 3 answers

AReview on a regular basis of all high-risk accounts and transactions

BReview of STR filing trends and typologies

CPeriodic training on the identification of red flags

DRequirement that the Board of Directors approves the filing of an STR

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Question: 4

An anti-money laundering officer for a financial institution has been conducting a monthly self assessment.

The officer reviews the accounts increase in compliance with a long standing know your Customer policy. The self-assessment for the latest month shows a significant increase in compliance deficiencies for the first time in more than a year. What is the nest course of action for the anti-money laundering officer to take?

AInform the Board of Directors promptly of the Know Your Customer policy trend over the last six months.

BDetermine if there is a readily identifiable cause for the deficiencies

CImplement a revision to the account-opening training program

DRevise the policy to simplify Know Your Customer compliance before the report is issued

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Question: 5

In which type of banking transaction is price manipulation, as a form of money laundering, a common practice?

ARedeeming an annuity

BSending a wire transfer

CIssuing a letter of credit

DSubscribing to a cash management account

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Acams CAMS Quiz:16 Topic:2 Questions:76-80