Cam AML/Cft Training Quiz
End test following AML/CFT training.
- 1.
Failure to report suspicious activities can result in penalties or legal action against you and your company?
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Failure to report suspicious activities can result in penalties or legal action against you and your company because reporting suspicious activities is an important part of maintaining the security and integrity of a company's operations. Failing to report such activities can indicate negligence or complicity, which can lead to legal consequences. Additionally, reporting suspicious activities helps law enforcement agencies to prevent potential crimes or threats, making it a crucial responsibility for individuals and organizations.Rate this question:
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- 2.
Who is CAM's Money Laundering Reporting Officer?
Correct Answer
Kevin WakehamExplanation
Kevin Wakeham is CAM's Money Laundering Reporting Officer.Rate this question:
- 3.
What is the term for breaking up large sums of money into smaller amounts for deposit?
- A.
Slicing
- B.
Smurfing
- C.
Anting
- D.
Hacking
Correct Answer
B. SmurfingExplanation
Smurfing is the term used to describe the act of breaking up large sums of money into smaller amounts for deposit. This is typically done to avoid suspicion or detection by authorities, as large deposits may trigger investigations into the source of the funds. Smurfing involves multiple individuals making smaller deposits, often at different locations, to make it more difficult to track the origin of the money.Rate this question:
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- 4.
Which of the following is not acceptable as verification of identity?
- A.
Passport
- B.
Driving Licence
- C.
Birth Certificate
- D.
Identity Book
Correct Answer
C. Birth CertificateExplanation
A birth certificate is not acceptable as verification of identity because it only provides information about a person's birth and does not contain a photograph or other identifying details. In contrast, a passport, driving license, and identity book all include a photograph and other personal information that can be used to verify a person's identity.Rate this question:
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- 5.
Which of the following is not an element of money laundering?
- A.
Layering
- B.
Placement
- C.
Intergration
- D.
Filtration
Correct Answer
D. FiltrationExplanation
Filtration is not an element of money laundering. Money laundering typically involves three stages: placement, layering, and integration. Placement refers to the process of introducing illegal funds into the financial system. Layering involves complex transactions to obscure the origin of the funds. Integration is the final stage where the laundered money is made to appear legitimate. Filtration is not a recognized stage in the process of money laundering.Rate this question:
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- 6.
Which of the following should raise your "red flag"?
- A.
A customer who is more than usually reluctant to provide you with information.
- B.
A customer who seems to have no real reason to use the financial sector in Guernsey.
- C.
Transactions that are much larger or more frequent than normal for the account.
- D.
Transactions involving "high risk" jurisdictions.
- E.
Unnecessary use of third parties.
- F.
All of the above.
Correct Answer
F. All of the above.Explanation
All of the options mentioned in the question should raise a "red flag" in terms of potential financial risk. A customer who is reluctant to provide information may be trying to hide something or engage in fraudulent activities. A customer with no legitimate reason to use the financial sector in Guernsey may also be involved in suspicious activities. Transactions that are significantly larger or more frequent than usual can indicate money laundering or other illicit activities. Transactions involving "high risk" jurisdictions are also more likely to be associated with illegal activities. Lastly, unnecessary use of third parties can be a sign of attempts to conceal the true nature of transactions. Therefore, all of these factors should be considered warning signs.Rate this question:
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Current Version
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Mar 20, 2023Quiz Edited by
ProProfs Editorial Team -
Dec 21, 2011Quiz Created by
Zrphelps