A junior account manager within an international private bank in Country A was asked by one of his valued customers, who has held an account for several years in the institution, about depositing a large sum of cash into her account. The junior account manager informed his customer that his bank does not accept cash. The junior account manager later reviewed a customer activity report and noticed a number of smaller dollar wires from banks in neighboring Country B, which has lax currency controls, that totaled about as much as the customer intended to deposit.
What should the junior account manager do?

• A. Offer the customer a more secure method of depositing in the hope of learning something more during the conversation
• B. Notify the anti-money laundering specialist of his bank, but do not call the customer
• C. File a suspicious transaction report with the Financial Intelligence Unit
• D. Close the account

The product department of an insurance company proposes launching aspecial life insurance productwith investment elements that allow clients toinstruct payments to unknown third partiesvia partner financial institutions. The product department seeksfast-track approvalfrom compliance to ensure quick market launch.
What is the best course of action from a compliance perspective?

• A. Do not sign off on the product because the compliance department was not involved from the beginning of the product development process, which is a severe governance violation.
• B. Do not sign off on the product because it contains the option to make payments to unknown third parties, which carries a high money laundering risk.
• C. Sign off on the product quickly to gain a competitive advantage while evaluation by compliance can be completed later.
• D. Sign off on the product because client KYC is complete, and unknown individuals can be added or removed throughout the duration of the contract.

What are the European Union Directives on Money Laundering?

• A. They are written by the Wolfsberg Group
• B. They require members to implement certain laws of prevent money laundering
• C. They require financial institutions to report suspicious activity to the Egmont Group in Brussels
• D. They are voluntary codes of best practice for the financial sector

A typical red flag regarding potential money laundering in connection with an art purchase occurs when a customer:

• A. pays more at an auction for a painting than the estimated maximum price.
• B. buys a painting as an anonymous bidder and provides the source of wealth.
• C. asks to pay in installments and pays from two differently named accounts.
• D. asks to pay a large amount in cash without a comprehensible reason.

The ultimate goal of economic sanctions is to:

• A. prevent terrorists from profiting from trade.
• B. protect national security.
• C. protect the reputation of the country.
• D. reduce the profits of sanctioned countries.