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AML test study guide new exam, Exams of Foreign Exchange Law

Liberty University (LU)Foreign Exchange Law

AML test actual study guide solution new exam

Typology: Exams

2023/2024

Available from 07/03/2024

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AML test study guide new exam
Insurance companies are required to file SAR with:
A) FBI
B) IRS
C) FATF
D) FinCEN - D) FinCEN
Which of the following insurance products are not covered by AML regulations?
A) an annuity contract other than a group annuities contract
B) whole life insurance
C) universal life insurance
D) term life insurance - D) term life insurance
A money launderer decides to borrow the money against the whole life insurance policy
purchased with illicit funds. This is an illustration of which money laundering phase?
A) Placement
B) Layering
C) Integration
D) None of the above - C) Integration
A customer deposited $11,000 in cash into his bank account. The bank must file the following:
A) CTR
B) SAR
C) Both
D) None of the above - A) CTR
A customer deposited $50,000 in cash into his bank account during the same day from multiple
branches. The bank must file the following:
A) CTR
B) SAR
C) Both
D) None of the above - C) Both
A customer bought ten whole life insurance policies and five annuity contracts over the past
year using money orders and traveler's cheques. Which phases of money laundering this
activity could represent?
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AML test study guide new exam

Insurance companies are required to file SAR with: A) FBI B) IRS C) FATF D) FinCEN - D) FinCEN Which of the following insurance products are not covered by AML regulations? A) an annuity contract other than a group annuities contract B) whole life insurance C) universal life insurance D) term life insurance - D) term life insurance A money launderer decides to borrow the money against the whole life insurance policy purchased with illicit funds. This is an illustration of which money laundering phase? A) Placement B) Layering C) Integration D) None of the above - C) Integration A customer deposited $11,000 in cash into his bank account. The bank must file the following: A) CTR B) SAR C) Both D) None of the above - A) CTR A customer deposited $50,000 in cash into his bank account during the same day from multiple branches. The bank must file the following: A) CTR B) SAR C) Both D) None of the above - C) Both A customer bought ten whole life insurance policies and five annuity contracts over the past year using money orders and traveler's cheques. Which phases of money laundering this activity could represent?

A) Placement B) Layering C) Integration D) None of the above - B) Layering Which of the following statements is correct? A) AML regulations apply to all US-based insurers B) AML regulations apply only to insurers engaged within the US as a business in the issuing or underwriting of covered products. - B) AML regulations apply only to insurers engaged within the US as a business in the issuing or underwriting of covered products. Which of the following statements is not correct? A) Money laundering is used to hide the origin of funds. B) A large portion of funds used in terrorist financing comes from money laundering. C) Insurance companies must monitor transactions for suspicious activity possibly related to money laundering. D) Insurance agencies must monitor transactions for suspicious activity possibly related to terrorist financing. - D) Insurance agencies must monitor transactions for suspicious activity possibly related to terrorist financing. Which organization published the rules obligating insurance carriers to create AML programs? A) FINRA B) LIMRA C) FinCEN D) FATF - C) FinCEN An insurance agency receives the payment from a customer in the amount of $10,500 in the form of money orders and traveler's checks. Does this transaction have to be reported to the IRS? A) Yes B) No - A) Yes Do AML regulations apply to general agencies? A) Yes B) No C) Only if the agency is large - B) No

Why some insurers may keep SAR records for more than 5 years? A) Because the AML regulation may change in the future B) Because it doesn't cost much to keep SAR longer C) Because the insurer may still have financial relations with the customer but initial detection happened more than 5 years ago - C) Because the insurer may still have financial relations with the customer but initial detection happened more than 5 years ago Can customers sue an insurance company or an agent for disclosing their possible criminal activity? A) Certain states allow this B) Yes C) No - C) No What kind of penalties can an insurance company face for not reporting suspicious activity related to money laundering? A) Criminal charges B) Civil charges - B) Civil charges Does the amount of penalties and the length of imprisonment for money laundering increases if a person also violated other US laws? A) Yes B) No - A) Yes Which of the following penalties can be imposed for each OFAC violation? A) Fine of up to $1M and/or up to 20 years in prison B) Fine of up to $500K and/or up to 10 years in prison C) Fine of up to $250K and/or up to 5 years in prison - A) Fine of up to $1M and/or up to 20 years in prison