LIMRA's U.S. Anti-Money Laundering Training Program is a fast, easy, and inexpensive way for financial services companies to meet key requirements of U.S. Treasury Department rules. Please do not be blinded with this mock test. Globally governments have narrowed key risk indicators to five primary divisions of (1) Nature, size and complexity of a business, (2) Customer types including B2B and B2C, (3) the types of products and services provided to customers, (4) method of on-boarding new customers and ongoing communications with existing customers and finally, (5) Geography risks. A person recruited to transact with illegally obtained money, A gang member transporting laundered cash, Replacing incriminating words with code names, Outsourcing the depositing of illegal monies to multiple people. The UK is at the forefront of tackling money laundering and terrorist financing globally; in 2018 the UK achieved the best rating of any country assessed so far in of the UK. It can involve money from drug crimes, trafficking, people smuggling, tax crimes, robbery, fraud, arms trading, etc. Inspired by the TV program with the little blue people, what is ‘Smurfing’? A money laundering risk assessment is an analytical process applied to a business to measure the likelihood or probability that the business will unwittingly engage in … Staff NumbersThe greater the number of employees the greater the need to adequately manage communication of the programme and training. is a report that financial institutions must file following a suspected incident of money laundering, fraud or other violation of the law. Money launderers can commit the crime of money laundering in the following ways: (Select all that apply) A. We’ve got you covered! Therefore for businesses you should understand their products/services and customer types.Â. Suggested answer (any three aspects) The key aspects of the 2007 Regulations include requiring banks and other financial intermediaries to: Have a risk assessment in place in respect of money laundering. Published 17 December 2020 From: The both versions are providing interactive CAMS exam questions and answers in the process. High ValueHigh value products or services increase the risk of money laundering occurring.Enhanced due diligence should be considered for high value products by verifying the source of funds or wealth of the customer.AML/CFT risks: High value products or services offer those seeking to undertake money laundering and the financing of terrorism the opportunity to move illicit funds in large amounts with limited exposure. The worksheet and quiz will address some money laundering … Product or Service DiversityThe greater the number of products or services provided, the greater the opportunity for a launderer to use a business to layer their dirty funds and integrate with cleansed funds.AML/CFT risks: Each product and service must be risk profiled against vulnerability for ML/FT.  An alternative range is to use a 5-level rating of Very Low, Low, Medium, High and Very high. When the risk assessment includes the inherent risk and measures the strength of controls, this results in a finding of the residual risk. This will allow your business to more readily identify account activity that is posing a higher risk.  The influence will either increase or decrease the risk. susecas activity report is a form that needs to be filed by any person in a trade or business who receives more than $10,000 in cash in a single transaction or related transactions. What is a money laundering risk assessment? This assessment forms a critical evidence base for our response to money laundering and terrorist financing in the coming years. Registered Office is Global Reach, Dunleavy Drive, Cardiff CF11 0SN. Selling prepaid products and over the counter medication C. Structuring transactions D. The UK achieved one of the best ratings of any country assessed so far in this round of evaluations, outperforming other states who are at the forefront of tackling money laundering and terrorism financing. Conversely, where the measurement of a risk driver is low, the risk rating will decrease. Laundering the financial proceeds of criminal activity continues to pose one of the greatest threats to society: impacting economies, businesses, and most importantly, people across the globe. Learn about other organizations and federal government agency efforts to combat money laundering and terrorist financing It currently has 34 members and 30 international and regional organisations which are associate members or observers. AML/CFT risks: The less staff understand compliance obligations and associated risks - the less likelihood of suspicious activities being identified.   These known vulnerabilities are often referred to as Key Risk Indicators (KRIs). international standards against money laundering,were irst drawn up in 1990.The Recommendations were revised in 1996 and 2003. Anti-Money Laundering (AML) Chapter Exam Instructions. It then describes the FATF’s Strategic Surveillance Initiative and the main findings contained therein. Money laundering is a process to make money derived from criminal activities appear as though it was honestly gained. Staff TurnoverIt takes time for a new staff member to learn policies, procedures and controls.High staff turnover increases compliance risk due to loss of knowledge and may also indicate problematic areas within senior management.AML/CFT risks: Inexperienced staff without sufficient knowledge of AML/CFT requirements can support those undertaking money laundering and the financing of terrorism by providing the opportunity to successfully exploit the services and products provided by a business with weak detection capability. Denial is a common tactic that substitutes deliberate ignorance for thoughtful planning. Give it a shot and see how informed you are. TERMS IN THIS SET (9) Money laundering is the attempt to conceal or disguise money obtained as a result of criminal activities. Identify three key aspects of the UK Money Laundering Regulations 2007. Business Law, April 2014, Q3. 1406 days 1 hours 42 minutes ago Your business should operate with client risk profiling systems so you know which clients present the highest risk.AML/CFT risks: The ability to hide amongst other clients is a crucial factor for those seeking to undertake money laundering or the financing of terrorism. LexisNexis Risk Solutions UK Ltd is a company registered in England & Wales at 1st Floor, 80 Moorbridge Road, Maidenhead, Berkshire SL6 8BW. Our Anti-Money Laundering Employee Assessments have been extensively updated to comply with MLD4 and The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR17), the final version of which came into effect on 26th June 2017.Risk assessments, due diligence, internal controls, training, employee screening and reporting are featured … Size of Client BaseThe greater the number of clients the greater the exposure to ML FT. Cash ExposureYour business should measure the proportion of transactions that are linked to physical cash.AML/CFT risks: Cash products have greater vulnerability and exposure to the first stage of the money laundering cycle. These clients should therefore receive enhanced ongoing due diligence. On this page, we’ve listed some of the most common Anti-Money Laundering Accountant interview questions along with sample answers. Go to this link to get a copy of a money laundering risk assessment guideline. Assess your understanding of the money laundering process with this quiz. The next sections of the chapter explain what the Global Money Laundering and Terrorist Financing Threat Assessment (GTA) aims to achieve, Registration number 07416642. Once the residual risk is calculated, a business will then have an obligation to ensure ongoing identification, management, monitoring and reporting of ML/FT risks. About This Quiz & Worksheet. A comprehensive database of more than 15 anti money laundering quizzes online, test your knowledge with anti money laundering quiz questions.Our online anti money laundering trivia quizzes can be adapted to suit your requirements for taking some of the top anti money laundering … IIBF AML KYC Mock Test Series 2020: Practice free online IIBF AML (Anti Money Laundering) and KYC (Know Your Customer) model exam question paper with answers and solutions. They can simulate the Certified Anti-Money Laundering Specialists actual test to feel the real exam in advance. You can always opt-out from receiving such messages as set out in our Privacy Policy. Below are some examples of key risk drivers. LexisNexis® Risk Solutions is a leader in providing essential information that helps advance industry and society. 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