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 are some of the methods for sharing information and cooperating on an international basis? Choose 3 answers

AMutual Assistance Legal Treaties

BInternational Money Laundering Information Network

CRegulatory sharing through Supervisory Channels

DIssuane subpoenas

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Question: 4

What is a key risk associated with Correspondent Accounts according to the Basel Customer Due Diligence paper?

AIt is not used on a daily basis

BThe service fees are insufficient to cover the cost of managing the account

CThe respondent bank's customer acceptance and know your customer policies are ineffective

DThe volume and value of transactions passing through the account may not be in line with the original
correspondent agreement

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Question: 5

What is one recommendation of the Basel Committee's 2001 paper Customer Due Diligence for Banks''?

ANumbered accounts should not be allowed

BCertain types of private banking can be exempt from KYC procedures

CBanks should develop dear descriptions of acceptable customers

DPolitically Exposed Persons (PEPs) should not be accepted as customers

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