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

After an institution files an STR with regard to a particular account, a law enforcement agent requests the institution to keep the account open until advised otherwise by law enforcement.

What steps should the institution take?

AThe institution should close the account in order not to be caught in the middle of a law enforcement investigation

BThe institution should follow the request of the law enforcement agent and keep the account open

CThe institution should request a written letter From the law enforcement ( agency signed by an appropriate authorized signature

DThe institution should keep the account open only if doing so comports with the bank's own AML procedures

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Question: 3

The marketing department presents a business plan targeting individuals holding important public positions. What are some steps the financial institution should implement as part of the plan to target such individuals?

AInvestigate the source of funds

BDetermine the purpose of the account

CDetermine if the client appears on the Basel Committee on Banking Supervision's list of public officials

DTake all reasonable steps to check the background of the individual based on public information

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Question: 4

In 2004, Consolidated KYC Risk Management was issued by the Basel Committee on Banking Supervision (BCBS). What is a key message in this document?

AKYC Risk Management required a yearly consolidation effort

BKYC Risk Management means as established decentralized process for promulgating policies and procedures

CPolicies and procedures should be designed not merely to comply strictly with all relevant laws and regulations

DConsolidated KYC risk management for a group is critical and trumps jurisdictional rules hat limit information sharing

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Question: 5

To guard against acquisition or control of a financial institution by money launderers or their associates, what should supervisory agencies require?

AAdequate surety bonds, cash deposits, or equivalencies

BComprehensive compliance programs

CProspective owners have prior experience in the area of finance

DThorough due diligence on prospective owners

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