Annual AML Training and Testing

The statement is True. Placement, Layering and Integration

The correct answer is C. While the bank may want to visit the prospect, that is not the common reason for requesting a utility bill and personal visits are not the norm. Further the monthly expenses (b) has no real relevance.

The correct answer is C.

The statement is False. Equal or greater due diligence is required for Charities and Non-profit entities.

The Correct answer is A. A combined automated system (which identifies transactions out of a profile) and manual (which investigates transactions identified) is more effective than separate systems.

The correct answer is C. Exposed persons are individuals who have a level of influence (authority, perceived immunities, means and resources) and due to their public office, are quite visible and accessible. Choices A and C are not valid descriptions of exposed persons in relation to AML.

The statement is False. Reputation Risk is the responsibility of all staff

The correct answer is C. Your reputation may be affected by both the quality of clients accepted, and the quality of service offered.

The correct answer is A. A passport, being an accepted document for entry into foreign countries, is more complete than a driver's license, containing information such as Nationality, Home Address and Travel history. A credit card is not a valid ID.

The correct answer is C.

The statement is True.

The answer is C. Specific circumstances (which are defined) require enhanced due diligence, such as limited interaction with the prospect, an exposed person, a high risk country.

The statement is False. Corporations (and beneficial owners) are held to similar standards in due diligence as personal prospects.

The statement is True. A bank with a damaged reputation is more likely to lose accounts than one with its reputation intact.

The correct answer is C. Having identified the depositor, the source of the funds is very relevant, more so than the deposit amount, or ultimate intended use.

The correct answer is C, since both A (there are least 34 member countries) and B (it is headquartered in Paris) are incorrect.

The correct answer is A. Choices B and C are not valid reasons for documenting training records.

The statement is False. Clients on a 'watch list' are generally considered High Risk.

The correct answer is C. Suspicious Transactions should be reported to the Money Laundering Reporting Officer.

The correct answer is A. Local entities licensed under a financial services regulator qualify as eligible introducers.

The statement is True.

The statement is True. Our laws are framed to follow international standards, and not specific to our geographical area.

The statement is False. Politically Exposed Persons are not limited to Members of Parliament.

The correct answer is A. Most attempts to forge undue relationships with bank employees is for the intent to commit fraud.

The statement is False.. Acceptance of new clients should be a process which is independent, meaning that the decision is a joint one either directly or through the approval process.

The statement is False. Our threats also include the use of funds within the system, and our reputation for competent customer service and a global partner in the effort against Money Laundering.

The correct answer is B. The other choices are valid, while B, is mostly disregarded.

The correct answer is C. Laws and Regulations are enforceable by penalties, while Guidelines are intended to present practical advice on how the bank licensee should conduct itself. In the absence of evidence that the bank is following advice, the regulator may conclude that the bank is carrying on business in a manner which may give rise to sanctions under the applicable law.

The statement is True. Higher risk rated accounts are reviewed more regularly.

The correct answer is A. The issuance of a Certificate of Incorporation by a Registrar is proof of a duly formed company. Items B and C are documents which are required in forming a company, but not evidence that is has been registered.

The correct answer is D. All of the other answers are valid reasons why a periodic client review is performed.

The statement is False. The effort is global, with international bodies and standards, encouraging and enabling cooperation despite diversity of countries and cultures.

The correct answer is C. The client's political persuasion has no rlevant effect on the profile, except if the client is an exposed person. A, B and D are all factors in establishing a profile.

The statement is False. The best time to intercept a Suspicious Transaction is at Placement.

The correct answer is B. Risk to your reputation result from negative publicity, while positive publicitiy (answers A and C) should generally help your company.

The correct answer is B. The relationship to be established is based on the integrity of the representations made to the bank on the prospect and a complete reliance that the person is who they represent themselves to be.

The correct answer is C. The FIU Act authorizes enforcement of penalties under the POCA, while The Central Bank of The Bahamas Act establishes the Central Bank as the regulatory body with defined duties and powers.

The correct answer is C.

The correct answer is C. Decisions made in good faith and poor ethical decisions can result in risks to your reputation.

The correct answer is A. Reputation Risk is measured by the potential that negative publicity about your company may result in negative consequences. Both B and C are incorrect, because Risk is measured in likelihood not unlikelihood, and not in actual events, but the potential that an event may occur.

The correct answer is C. The most important component in the prevention of Money Laundering is the people who operate the systems intended to facilitate compliance with the laws. Without the people, the systems would be inoperable, and the laws unenforceable.

The correct answer is A. The transaction monitoring program should be structured in relation to the risk rating; higher risk rated accounts require more extensive monitoring. While B and C are relevant, they are not most relevant.

The statement is True. The origin and legality of the wealth being offered takes precedence to the legal structure being proposed.

The correct answer is B, the Proceeds of Crime Act which grants the authorities power over the proceeds of crime related to money laundering and connected purposes; both A and C relate to proceedings in foreign jurisdiction.

The correct answer is C. All the others may have a connection with the prospect, and would be considered less than independent.

This statement is True. Equal due diligence is required whether the entity is incorporated or not.

The statement is False. Risk Rating assignment is required before the first transaction occurs.

The correct answer is A. While B and C is recommended. D is not relevant.

The correct answer is C. A. company should act to limit its liability to clients and third parties; and independent professional advice is recommended; with regard to the regulator, a company may simply consult the regulator with any queries.

The statement is True. The regulations allow for reliance on KYC procedures performed by third parties who qualify as 'eligible introducers'