Question 1

How should law enforcement obtain documentation from an institution when suspicious activity was identified? (Choose two.)

Options :

A : Request copies of the relevant documents from the accountable institution.

B : Pay an employee of the accountable institution to make copies of the documents.

C : Request a Financial Intelligence Unit (FIU) share copies of suspicious transaction reports.

D : Request the documents from the FIU.

E : Acquire a search warrant to obtain the documents.

Answer: A,D

Question 2

Which Trust parties should be identified to determine the true nature of the Trust relationship according to Basel guidelines? (Choose three.)

Options :

A : Respondents

B : Payees

C : Trust Administrators

D : Trustees

E : Beneficiaries

F : Settlors/grantors

Answer: A,B,D

Question 3

What are two requirements of United States financial institutions when conducting business with an
international institution as a result of the USA PATRIOT Act? (Choose two.)

Options :

A : Performing enhanced due diligence on shell banks

B : Performing due diligence on correspondent accounts

C : Visiting the head office of the international financial institution

D : Complying with Special Measures issued under the USA PATRIOT Act

Answer: A,D

Question 4

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

Options :

A : Gather a list of their politically exposed customers

B : Identify natural persons who own or control more than 5%

C : Obtain senior management approval before establishing the relationship

D : Obtain a third party independent review of the respondent-s anti-money laundering program

Answer: C

Question 5

A potential client calls a broker-dealer wishing to purchase securities. The client does not appear to be concerned with any fees associated with the account or price of the securities. Further information provided by the potential client indicates the individual may have relatives working for a company in which the potential client wants to invest. Which type of activity is the potential client attempting to commit?

Options :

A : Transfer of value to relatives

B : Usage as a deposit account

C : Usage of insider information

D : Transfer funds to a third-party

Answer: B

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