Show:
Spin Cycle
A load off your mind
LOADS of trouble
The Sockrifice
Throwing in the towel
100

What 2 things need to be filled in for every demand account?

Intended Use & Third Party

100

What are the 3 options of Purpose and Intended Nature of Business Relations?

Primary, Secondary, Limited

100

Cash deposits over $10,000 are reported to this agency?

Fintrac

100

What is it called when an account is operated on behalf of someone else?

Third Party

100

Why does ISCU require the Central Securities Registry and Share Breakdown for corporate business accounts?

To determine Beneficial Ownership.

200

When a member sends/receives a wire transfer, what amount is considered a triggering event?

$1,000

200

What does PEP and HIO stand for?

Politically Exposed Person and Head of an International Organization.

200

Name 3 categories that would qualify as a Politically Exposed Foreign Person.

Judge
Head of state or head of government
Member of the executive council of government or member of a legislature
Deputy minister or equivalent rank
Ambassador or attaché or counselor of an ambassador
Military officer with a rank of general or above
President of a state owned company or a state owned bank
Head of a government agency
Leader or president of a political party represented in a legislature

200

What is the dollar threshold for a suspicious transaction?

Any transaction can be suspicious. Employees must use discretion when determining if a transaction is suspicious or not.

200

What information must we obtain for all cash transactions under $1,000?

First Name

Last Name

300

Name the 4 of the 8 items that need to be confirmed and/or updated for AML on a personal members accountName the 4 of the 8 items that need to be confirmed and/or updated for AML on a personal members account

  1. Occupation
  2. Identification
  3. Intended use
  4. Physical Address
  5. Third party
  6. Purpose and nature of business relationship
  7. PEP designation
  8. FATCA & CRS
300

When is it required to create a profile for a non-member conductor?

Deposit includes cash $1,000 and over

300

What 2 types of accounts do not require intended use declared outside of shares and rewards?

RRSP & RRIF.

300

Name 2 revenue generating activities commonly used for Terrorist Financing.

Smuggling

Credit Card fraud

300

What information must we obtain for all cash transactions over $1,000?

First Name
Last Name
Physical Address
Date of Birth
Occupation

400

What does FINTRAC stand for?

Foreign Account Tax Compliance

400

If a prospect member advises that they work in the cannabis industry, what must the employee do to proceed with the application?

Search government records to ensure the company is licensed.
400

3 reasons criminals want to launder money

  • Avoid prosecution
  • Increase profits
  • Avoid seizure of accumulated wealth
  • Appear legitimate
  • Tax evasion
400

What level of approval is required for a new or existing member that is identified as PEFP?

AVP Retail Operations or the SVP & COO. (Bonus 100 pts: Must be submitted by the BM within 30 days after the member was identified as PEFP.)

400

Name 3 Money Laundering Methods

  • Smurfing (Structuring) - this is possibly the most commonly used money laundering method. It involves many individuals who deposit cash or buy bank drafts in amounts under $10,000. This method is common to both Canada and the United States
  • Bank complicity - a criminally co-opted bank employee may facilitate money laundering. Given the Canadian Bankers Association’s policy, procedures and training, it is becoming increasingly difficult for criminals to employ this method
  • Currency Exchanges - an exchange booth that permits individuals to buy foreign currency that can then be transported out of the country. Money can also be wired to offshore bank accounts anywhere in the world by these exchanges
  • Securities’ Brokers - a stock broker may take in large quantities of cash and issue securities in exchange
  • Asset Purchases with Bulk Cash - Money Launderers purchase big ticket items such as cars, boats, planes, or real estate. In many cases, launderers may use the asset but will distance themselves by having assets registered in a friend’s name
  • Telegraphic Transfer of Funds - wiring money from one city or country to another without actually carrying the money
  • Postal Money Orders - exchanging cash for money orders, then shipping them out of the country for deposit
  • Travel Agencies - exchanging cash for travel tickets. This is a common method of moving money from one county to another
  • Credit Cards - overpaying credit cards and keeping a high credit balance that can be turned over to cash at any time and place
  • Gambling in Casinos - cash may be taken to a casino to purchase chips. After gaming and placing normal bets, chips are reclaimed at the cashiers cage where a casino cheque is issued
  • Refining - individuals who change smaller bills into large. This is easily done by visiting a number of banks so as not to arouse suspicion. The purpose of refining is to decrease the bulk of larger cash quantities
  • Commingling - criminals take over and/or invest in businesses that customarily handle a high cash transaction volume mixing the illicit proceeds with that of the legitimate business
  • Loanback - a criminal provides an associate with a specific amount of illegitimate money. The associate then provides a “loan or mortgage” back to the trafficker for the same amount with all the necessary “loan and/or mortgage” documentation. This creates an illusion that the trafficker’s funds are legitimate. The scheme is re-enforced through “legitimately” scheduled payments made on the loan by the traffickers
500

What does CRS stand for?

Common Reporting Standards

500
Name 4 account types that allow "third party" transactions, but are not considered third party accounts.
  • internal undocumented junior trust accounts
  • an executor or administrator of an estate (either a will or statute governs what is to be done with the funds in the estate. The beneficiaries, in almost all cases, do not instruct the executor or administrator on what to do with the funds)
  • a committee of an incapable adult (the committee is acting for the member, but is not taking instructions from the member)
  • a POA

Note: If the member/donor is adding a POA to his/her existing account that does not have a third party statement on file, the donor signs the Third Party Statement

  • an employee depositing cash to the employers business account (Large cash transaction reporting still applies)
  • a Government account
500

Name 3 account types that are considered a Third Party.

  • Trustee for a documented or undocumented trust account (the beneficiary is the third party). Internal undocumented Junior Trust Accounts do not apply.
  • Victim’s trust account
  • Notary trust account
  • Brokerage trust account
  • Rental Property Manager trust account
  • Strata Management trust account
  • Strata Corporation trust account
  • Collection Agents trust account
  • Travel Agents trust account
  • Motor Dealers trust account
  • Election and Constituency accounts
500

What is the FinTRAC Reporting Deadline for Terrorist Financing?

Transactions related to Terrorist Financing must be submitted to FINTRAC immediately

500

What is the FinTRAC Reporting Deadline for Large Cash Transactions?

Large cash transactions must be submitted to FinTRAC within 15 days of the transaction date