AML CFT QUIZ 2023

1. What is Money Laundering?

The process where gambling winnings are invested into financial markets.

The process where money exchange programs are setup.

The process where illegal gains are 'cleaned' to hide the origin of the cash.

The monthly salary process at ADB.

2. What are the key stages in the Money Laundering process?

Integration, Leaving & Depositing

Depositing, Integration & Exchange

Placement, Harassment & Substitution

Placement, Layering & Integration

3. What is a 'STR' and what is the process of 'flagging' a STR?

'Sound Transaction Record' and inform Marcus in IT.

'Secret Terms Record' and inform CMC who investigates and informs CO.

'Suspicious Transaction Report' & inform the CO who investigates and reports to the FIU.

All the above.

6. After a risk assessment it is decided to carry out 'Enhanced Due Diligence' as the company was found to have foreign 'PEPs' on the board. What scope of work would suffice in reviewing the client?

Google/Internet/News searches. Verification of source of funds. Regular reviews. Assessment and checks on the PEPs immediate family and known colleagues/friends/companies. CMC and CO approval.

Wikipedia checks and World checks. CO sign off.

Spy on the PEP and bug his home. CO sign off.

Checking bank statements and asking for police reports. CO sign off and risk rating.

7. After starting a business relationship with a client which of the following would cause concern and be a 'Red Flag'?

Unrealistic wealth compared to profile.

Trades with no/little benefits and losses without concern.

Large/rapid movement of funds.

All the above.

9. A walk-in customer, Mr. Roberts, came to the Central branch and asked to set up a joint savings account, for himself and his wife. He asked this to be done quickly because he will be returning to Tobago soon. He provided proof of address documents and his form of ID. He claimed that he would supply the outstanding documents and a form of ID for his wife at a later stage. What is the most appropriate course of action?

Refuse Mr. Roberts’ business as the circumstances are suspicious

Proceed with the business and conduct CDD on Mr. Roberts and his wife

Refuse Mr. Roberts’ business as the circumstances are suspicious B. ProceProceed with the business but make a suspicious transaction report because it looks suspicious

Inform Mr. Roberts that his wife will have to be present to open a joint savings account and that she can accompany him to the Tobago Branch of ADB with the outstanding documents for the process to move forward.

10. Mr. Roberts told you that he came from Tobago and would stay in Trinidad for a few days only. He claimed that he wanted to deposit the funds from dividends he obtained from an investment in Tobago and invest in real estate in Trinidad. As he is a very busy man, he requested to deposit the money in cash into the bank account at the ADB so that the money could be transferred to the bank account of Company A, of which he is a director, for property investment. What should you do?

Ask your staff to deposit the cash into the bank account and wait for further instruction from Mr. Roberts

Complete a STR as the circumstances are suspicious

Refuse to proceed with the transaction but no need to complete a STR

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AML CFT QUIZ 2023

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