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AML TEST QUESTIONS
Actual Qs and Ans Expert-Verified Explanation
This Exam contains:
-Guarantee passing score -34 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: What is the process of making illegally obtained proceeds appear legal?
Answer:
Money laundering Question 2: Name ten additional countries that are of concern to the United States as it relates to financial transactions.
Answer:
- Afghanistan2. Brazil3. China4. Colombia5. Guatemala6. Lebanon7. Russia8. Spain9. Turkey10.
Venezuela Question 3: What is the distinct difference between a fraud and an attempted fraud?
Answer:
Financial loss Question 4: CDD is:
Answer:
Customer Due Dilligence
Question 5: This refers to the natural person who ultimately owns or controls a legal entity and/or the natural person on whose behalf a transaction is being conducted.
Answer:
Beneficial owner Question 6: Name the worlds largest anti-fraud organization and premier provider of anti-fraud training and education.
Answer:
ACFE (Association of Certified Fraud Examiners) Question 7: Name the three lawful ways in which law enforcement may obtain evidence such as
financial records:
Answer:
- Consent2. Subpoena3. Search Warrant
Question 8: What is a report that US financial institutions are required to file for each deposit, withdrawal or exchange of currency in excess of $10,000?
Answer:
CTR (Currency Transaction Report) Question 9: What is a report that financial institutions must file following a suspected incident of money laundering, fraud or other violation of the law?
Answer:
SAR (Suspicious Activity Report) Question 10: What is a form that needs to be filed by any person in a trade or business who receives more than $10,000 in cash in a single transaction or related transactions?
Answer:
Form 8300
Question 11: What are the four elements of fraud?
Answer:
- Material false statement2. Knowledge that statement is false3. Reliance on false statement4.
Financial loss
Question 12: What is a division of the United States Treasury Department whose goal is to prevent and punish criminals and criminal networks that participate in money laundering?
Answer:
FINCEN (Financial Crimes Enforcement Network) Question 13: The 4 primary institution regulators are:
Answer:
- NCUA (National Credit Union Administration)2. FDIC (Federal Deposit Insurance Corporation)3. The
Federal Reserve4. OCC (Office of the Comptroller of Currency) Question 14: PEP stands for:
Answer:
Politically Exposed Person Question 15: What is a financial statement that reports a company's revenue and expenses and profit/loss over a specific period of time?
Answer:
Income statement Question 16: What is a legal term used by financial regulators to describe businesses that transmit or convert money?
Answer:
MSB (Money Service Business)
Question 17: Name the 4 largest banks in the United States.
Answer:
- Wells Fargo2. Bank of America3. JP Morgan Chase4. Citi Group
Question 18: OFAC stands for:
Answer:
Office of Foreign Assets Control Question 19: This was created in 1970 to assist in criminal, tax and regulatory investigations:
Answer:
BSA (Bank Secrecy Act)
Question 20: The 2 primary regulators for Wall street are:
Answer:
- SEC (Securities and Exchange Commission)2. FINRA (Financial Industry Regulatory Authority)
Question 21: What two financial statements are usually provided by a business to a financial institution when trying to secure a business loan?
Answer:
Balance sheet & Income statement Question 22: Name the unemployed longshoreman in Philadelphia who, in February 1981 found $1.2 million in the street, after it had fallen out of the back of an armored car, and kept it.
Answer:
Joey Coyle Question 23: KYC is:
Answer:
Know Your Customer Question 24: SDN stands for:
Answer:
Specially Designated National Question 25: Who was the New York City hedge fund manager who was arrested in 2008 and subsequently plead guilty and sentenced to 150 years in prison for operating the largest Ponzi scheme in financial history?
Answer:
Bernie Madoff Question 26: If your firm files a Suspicious Activity Report (SAR) about a client's suspicious activities should an employee alert the customer that an SAR was filed?
Answer:
No, because it is illegal
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