Compliance in Action: Everyday Compliance in the Workplace A
1. In most cases, money which is going to be laundered starts out as:
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(a) A Bank Draft
(b) Cash
(c) A Wire Transfer
(d) A Share Certificate
2. Layering is the process by which:
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(a) money is introduced into the Financial System
(b) laundered money reenters the legitimate economy
(c) the money launderer makes money
(d) the money launderer tries to cover his tracks by moving or converting the funds in order to distance them from their source
3. The Act which criminalizes money laundering is:
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(a) The Financial Transactions Reporting Act, 2000
(b) The Anti-Terrorism Act
(c) The Financial Transactions Reporting (Amendment) Regulations, 2001
(d) The Proceeds of Crime Act
4. The law which requires financial institutions to appoint a Money Laundering Reporting Officer is:
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(a) the Financial Transaction Reporting Act, 2000
(b) the Anti-Terrorism Act
(c) the Financial Intelligence (Transactions Reporting) Regulations, 2001
(d) the Proceeds of Crime Act
5. When providing your client's name, it is best to:
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(a) take the name directly from a government issued ID
(b) use the name that the client is most comfortable with
(c) use their maiden name if they are married
(d) use the name they used to introduce themselves to you
6. In processing a new application form, Tina notices that her client, Mrs. Bethel, has signed in a way very different from the signature on her ID. Tina should:
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(a) ignore it, as she witnessed the client sign
(b) call the police, as the customer is obviously trying to launder money
(c) inquire as to why and, if necessary, ask for further information
(d) make sure the check for the first premium has the correct signature
7. Simply put, the term Source of Funds in the context of Compliance refers to:
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(a) A customer's efforts to raise money
(b) The bank at which a check is drawn
(c) Information which allows the company to gain an understanding of where the funds to finance a transaction are coming from
(d) Both a and b
8. Jane has just received completed application forms for her new customer's policy. Her customer has indicated that the policy is being funded from the sale of her old car. On the New Business Compliance Form, Jane expects to see the following listed as Source of Funds
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(a) Salary
(b) Business Profits/Investments
(c) Savings Accumulation
(d) Sale of Assets
9. If you are required to obtain verification of a customer's identity you may accept:
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(a) a valid driver's license
(b) a valid passport
(c) any valid photo ID
(d) Both a and b
10. Clients who make numerous small cash payments so as to avoid heightened due diligence requirements are:
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(a) engaged in structuring
(b) laundering money
(c) practicing good accounting habits
(d) engaged in risky business
11. Paying attention to your client's payment habits:
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(a) may help you spot suspicious transactions
(b) is unnecessary
(c) may offend them
(d) is only important when taking on new customers
12. Financial institutions must report to the Financial Intelligence Unit:
(a) any transaction, or any proposed transaction, the financial institution knows, involves the proceeds of criminal conduct as defined in the Proceeds of Crime Act, 2000
(b) any transaction, or any proposed transaction, the financial institution suspects or has reasonable grounds to suspect involves the proceeds of criminal conduct as defined in the Proceeds of Crime Act, 2000
(c) Both a and b
(d) None of the above
13. In our case study, which stage of money laundering took place when the funds emerged as a wire transfer or a cheque from the insurance company?
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(a) Placement
(b) Integration
(c) Layering
(d) All of the above
14. Where a person provides information to another person that either prejudices, or is likely to prejudice an investigation or proposed investigation into money laundering, the person who provides the information is guilty of:
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(a) Money Laundering
(b) the offence of Tipping Off
(c) no offence
(d) being a caring agent
15. What may have helped insurance firm Z spot the money laundering activity?
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(a) Careful monitoring of their customers' transactions
(b) Verifying the source of their customers' funds
(c) Verifying their customers' address
(d) All of the above
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