How do payable through accounts (PTAs) differ from normal foreign correspondent accounts?

A. The customers do not have to worry about sanctions list screening such as OFAC

B. The customers have the ability to directly control funds at the correspondent bank

C. The customers can contact the correspondent bank directly to send wire transfers

D. The customers can hide their identity through the use of cover payments in U.S. dollars

What is an indicator of suspicious activity?

A. A customer who pay back a late loan all at once after collecting on a bad debt

B. A convenience store that brings in $20s and $10s and requests small bills and change

C. Large and frequent credit balances on a credit card resulting in request for refunds

D. An online retailer that uses a third-party payment processor to facilitate its transactions

A compliance officer learns from an Information Technology (IT) source of a potential new financial service being discussed by the new product approval committee. What is the correct next course of action?

A. Request that the new product approval committee include the compliance officer.

B. Go to the board of directors and try to shut the new service down immediately because the committee did not communicate with the compliance officer.

C. Get as much information as possible from the source so that potential risks can be researched and a report prepared and presented to the head of marketing.

D. Start initial research into potential risks but wait until notified that the service has been approved by the committee before initiating extensive research.

In which two ways do Financial Action Task Force-style regional bodies influence anti-money laundering and terrorist financing standards within their respective regions? (Choose two.)

A. They issue typologies specific to their geographical region.

B. They administer mutual evaluations of participating members.

C. They enforce the laws of the member countries in their geographic region.

D. They require participating countries to adopt laws in line with their recommendations.

One example of an external factor that will affect an organization's AML risk includes:

A. acceptance of new customer types.

B. introduction of mobile banking for all clients.

C. political system changes in a specific jurisdiction.

D. introduction of a new product which will be offered to wide range of clients.

According to the Basel Committee on Banking Supervision, banks should deal with high-risk customers by:

A. maintaining segregated records to enable easy inspection by law enforcement in case of a subpoena.

B. assigning those customers to specified private bankers for better monitoring of their offshore transactions.

C. performing enhanced due diligence including enhanced ongoing monitoring of the account activity.

D. seeking approval from the board of directors before establishing the relationship.

The bank's internal financial intelligence unit (FIU) has reviewed activity related to a politically exposed person (PEP); the activity in the account contains a large, round number, one time wire to an obscure organization. Which would not be a sufficient reason to file a SAR/STR?

A. Beneficiary is largely unknown

B. Maintain the bank's reputation

C. Wire is a large amount

D. Customer activity is unreasonable

A new business opened an account at a bank. After a month of activity, the account is referred to AML Investigations for potential human trafficking activity. Which red flags most likely triggered the referral? (Select Two.)

A. Trade in large volumes conducted with countries that are part of the diamond pipeline

B. Several cash deposits along the country's border that are quickly withdrawn by third parties _ Multiple purchases of virtual currency at or just below the reporting threshold

C. Several lodging and food payments made on the same day at unusual hours for a business

D. Conducting the businesses transactions online without visiting a branch

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

A. Business registry activities state promotion of environmental protection

B. High number of transactions through company's connected bank accounts

C. Paper packaging demand production

D. Expeditious shipment of wood to far away jurisdictions

E. Use of heavy machinery in non-protected areas

F. Executive's association with politically exposed persons

A compliance officer is reviewing transactions related to a company suspected of being involved in wildlife trafficking. Which of activities below are common in wildlife trafficking schemes? (Select Two.)

A. Large dollar wire transfers between wildlife farms and firms operating in inconsistent lines of business

B. Exchanging fiat currency to cryptocurrency to accomplish payment to the wildlife farm

C. Activity involving politically exposed persons with environmental, game, or forestry oversight

D. Payment of transportation charges using a fraudulent financial instrument

E. Customer requests payment of proceeds to an unrelated third party