Risk Indicators
This risk indicator detects transactions conducted just below a reporting threshold.
Structuring
This Chicago-based gangster is often credited with popularizing the term "money laundering" because of his innovative money laundering schemes.
Al Capone
The 3 stages of money laundering are: ________, Layering, and integration
Placement
This independent U.S. government agency was created in 1933 to restore trust in the American banking system by insuring deposits and examining financial institutions for safety and soundness.
Federal Deposit Insurance Corporation (FDIC)
This acronym represents the set of programs, policies, and procedures designed to prevent and detect money laundering.
AML (Anti-Money Laundering)
What does a high-risk rating mean for due diligence requirements?
Enhanced monitoring and EDD are required.
As a young man, he cashed $2.5 million worth of bad checks while impersonating a Pan Am pilot, a doctor, a teacher, and an attorney. A movie was made about his life in the early 2000s starring Leonardo Dicaprio.
Frank Abagnale
A type of entity with no verifiable business operations. Set up to exist only in name.
Shell Company
This bureau collects and analyzes financial transaction data to detect money laundering and terrorist financing.
FinCEN (Financial Crimes Enforcement Network)
When a customer’s risk level increases, this type of additional review is required.
EDD (Enhanced Due Diligence)
What type of business customer operates a check-cashing business which would typically be classified as high risk?
MSB (Money Service Business)
Don't let this man "make off" with your money.
Bernie Madoff
As part of the US Department of the Treasury, this entity administers and enforces economic and trade sanctions based on US foreign policy and national security goals
OFAC (Office of Foreign Assets Control)
This U.S. agency serves as the central bank and supervises financial institutions for safety, soundness, and compliance with the Bank Secrecy Act.
Federal Reserve Board (FRB)
This U.S. act, passed after 9/11, expanded AML requirements and information sharing across agencies.
USA Patriot Act-Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001
Frequent incoming international wires from unrelated senders might indicate this stage of money laundering.
Layering
The release of the __________ revealed the widespread use of off-shore shell companies to launder money and evade taxes. In April 2016, 11.5 million confidential documents from a law firm exposed a sprawling network of offshore companies used by the world’s elite.
Panama Papers
This type of individual may hold a position of office or association to other high ranking members of government, making them higher risk.
PEP (politically exposed person)
This federal agency charters and supervises national banks to ensure they comply with AML laws.
Office of the Comptroller of the Currency (OCC)
This acronym describes global standards that ensure financial institutions “know their customer’s customer.
KYC (Know Your Customer’s Customer)
A car dealership frequently sells vehicles for cash to the same group of buyers, who quickly resell them overseas. This pattern could indicate what type of money laundering scheme?
Trade Based Money Laundering
This energy company was involved in dubious accounting practices, resulting in their 2001 bankruptcy
Enron
An informal value transfer system common in the Middle East, North Africa, and the Indian sub-continent. Exists outside of the traditional banking system
Hawala
This international task force sets global AML/CFT standards and evaluates countries’ compliance efforts.
Financial Action Task Force (FATF)
Under this due diligence process, banks must collect information to understand a customer’s expected activity and assess their risk level.
CDD (Customer Due Diligence)