AML Test Study Guide questions with answers, Exams of Finance

Download AML Test Study Guide questions with answers and more Exams Finance in PDF only on Docsity! AML Test Study Guide questions with answers Insurance companies are required to file SAR with: A) FBI B) IRS C) FATF D) FinCEN - .......ANSWERS 🔷🖊✔✔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 - .......ANSWERS 🔷🖊✔✔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 - .......ANSWERS 🔷🖊✔✔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 - .......ANSWERS 🔷🖊✔✔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 - .......ANSWERS 🔷🖊✔✔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 - .......ANSWERS 🔷🖊✔✔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. - .......ANSWERS 🔷🖊✔✔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? C) Insurance agents are expected to work with carriers in identifying suspicious transactions that the carrier must report D) If an agent suspects there is a potential for money laundering they should immediately contact the carrier's AML compliance officer and await instructions. - .......ANSWERS 🔷🖊✔✔C) Insurance agents are expected to work with carriers in identifying suspicious transactions that the carrier must report D) If an agent suspects there is a potential for money laundering they should immediately contact the carrier's AML compliance officer and await instructions. A financial institution can't delay reporting after the date of initial detection A) more than 90 calendar days B) more than 60 calendar days C) more than 30 calendar days - .......ANSWERS 🔷🖊✔✔B) more than 60 calendar days 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 - .......ANSWERS 🔷🖊✔✔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 - .......ANSWERS 🔷🖊✔✔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 - .......ANSWERS 🔷🖊✔✔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 - .......ANSWERS 🔷🖊✔✔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 - .......ANSWERS 🔷🖊✔✔A) Fine of up to $1M and/or up to 20 years in prison