Insider Trading
What is the term for buying or selling a security using non-public, material information about the company?
Insider Trading
What financial crime involves placing and swiftly canceling large orders to give the false appearance of market demand or supply?
Layering
What does "SAR" stand for in the context of financial crimes?
Suspicious Activity Report
What is the act of providing funds or support to individuals or groups engaged in terrorist activities known as?
Terrorist Financing
What does "USA PATRIOT Act" stand for?
Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act
True or False: Insider trading is illegal in most jurisdictions.
True
In the context of layering, what is the main aim of creating a misleading market picture?
To manipulate the price of a security or create false trading volume
True or False: Financial institutions are required to file Suspicious Activity Reports (SARs) for transactions that raise red flags for potential money laundering or other illegal activities.
True
True or False: Terrorist financing is a crucial component of funding terrorist acts and organizations.
True
When was the USA PATRIOT Act signed into law?
October 26, 2001
Name one regulatory agency responsible for enforcing insider trading laws in the United States.
Securities and Exchange Commission (SEC) / Financial Industry Regulatory Authority (FINRA) / Department of Justice (DOJ)
True or False: Layering is a form of market manipulation.
True
Who are the primary recipients of Suspicious Activity Reports (SARs) filed by financial institutions?
Financial Crimes Enforcement Network (FinCEN)
Name one common method used for terrorist financing.
Money laundering through shell companies, Hawala, or charitable organizations
True or False: The USA PATRIOT Act primarily focuses on enhancing domestic surveillance to combat terrorism.
True
What is the maximum potential fine for an individual convicted of insider trading under U.S. law?
$5 million
Name one consequence or penalty for individuals engaged in layering.
Heavy fines, imprisonment, or other legal sanctions
In which industry are Suspicious Activity Reports (SARs) most commonly filed to report suspicious transactions?
Banking and Financial Services
What is the role of the financial sector in combating terrorist financing?
Implementing Anti-Money Laundering (AML) measures, reporting suspicious activities, and monitoring transactions
Name one key objective of the USA PATRIOT Act.
Enhancing law enforcement agencies' ability to detect and deter terrorism while preserving civil liberties
What landmark legislation enacted in 1934 strengthened regulations against insider trading and securities fraud?
The Securities Exchange Act of 1934
What are the primary motives for engaging in layering activities?
To influence stock prices, deceive market participants, or profit from market manipulation
Name one piece of information that is typically included in a Suspicious Activity Report (SAR).
Information about the suspect, description of suspicious activity, and the filer's contact information
Which international organization plays a vital role in combating terrorist financing by setting global standards and promoting effective implementation of measures?
Financial Action Task Force (FATF)
What are two financial-related provisions in the USA PATRIOT Act aimed at combating money laundering and terrorist financing?
Customer Identification Program (CIP) and Enhanced due diligence for correspondent accounts