Acronyms and Definitions
The acronym PEP is short for this term.
What is a politically exposed party?
I saw something suspicious... What should I do?
What is contact your Compliance Officer and manager?
I make rapid fund movements, trade randomly and have abnormal amounts of assets relative to my profile. When conducting transactions, my account will result in this.
What is a red flag?
Transaction verification records are kept for this period of time.
What is 5 years?
This is sending transactions through multiple financial institutions to limit tracking.
What is layering?
The acronym FATF is short for this.
What is a Financial Action Task Force?
This risk category applies to a PEP who is an investment banker?
What is low-risk?
One of these cannot be used for money laundering: property, business, model trains
What is all of them can be used?
Your duty of care is called this.
What is Know Your Member?
The stage of money laundering that isolates illicit funds and make transactions into financial institutions appear normal.
What is placement?
This acronym for a type of due diligence is oriented towards customers.
What is CDD?
A member is acting the ______ when she comes into the branch and transfers $2900 for the fourth consecutive day.
What is strange/abnormal/suspicious?
What is common in these 3 scenarios: multiple strange transactions, multiple same-value withdrawls under a limit, multiple frequest reposits and withdrawls in short periods of time
What is a risk of money laundering?
Enhanced due diligence is when an MSR...
What is "observes pre-determined circumstances and applies increased due diligence"?
Placement, layering and integration.
What are the 3 stages of money laundering?
Intentionally shrinking deposit size to fit under suspicious transaction limits
What is smurfing?
You are required to fill out this in the event: cancelling a transaction and rescheduling one, refusing to explain funding sources, nervousness when talking to MSRs and bribe attempts.
What is a suspicious activity report?
This is the means of legitimizing illictly obtained funds through a financial instituion.
What is money laundering?
This is valid identification but cannot be used as a verification of identity.
What is a birth certificate?
One of the following is not included in money laundering: placement, layering,spending, re-integration.
What is spending?
This licensing requirement is standard for all introducers in a financial system.
What is licensing under a financial services regulator?
To verify a place of residence, you need _______ and ________
What is a home address on a utility bill and the name of the resident?
These employees are responsible for stopping you from laundering money?
What is the Board, Senior Management, Compliance Officer and all employees.
Money laundering was ignored and eventually caught. This happens to the ignoring party.
What is assumption of liability and risk of fines or jail time?
I am a ________ customer if I am a charity.
What is high-risk?