Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

BusFin > Money Laundering > Flashcards

Money Laundering Flashcards

1
Q

is an act or series
or combination of acts whereby
proceeds of an unlawful activity,
whether in cash, property or other
assets, are converted, concealed or
disguised to make them appear to
have originated from legitimate
sources.

A

Money laundering

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

has been described by many as
the lifeblood of crime and
is a major threat to the economic and social well-being of societies.

A

Money laundering

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

is a serious threat

A

Money laundering

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

WHY MONEY LAUNDERING
A SERIOUS PROBLEM?

A

it provides funds for
terrorists, drug traffickers, arms
dealers, and criminal groups.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

refers to the laws, regulations
and procedures intended to
prevent criminals from
disguising illegally obtained
funds as legitimate income.

A

Anti-money laundering (AML)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Can Money Laundering be Stopped?

A

cannot be completely stopped but it
can be reduced through constant vigilance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

3 Stages of Money Laundering

A
  1. Placement
  2. Layering
  3. Integration
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

involves initial placement or introduction of the illegal money.

A

Placement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

involves a series of financial
transactions during which the dirty money is passed through a series of procedures, putting layer upon layer of persons and financial activities into the laundering process.

A

Layering

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

the money is once again made available to the criminal with the occupational and geographic origin obscured or concealed.

A

Integration

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Goal: deposit criminal proceeds into financial system

A

Placement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Goal: conceal the criminal origin of proceeds

A

Layering

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Goal: Create an Apparent Legal origin for criminal proceeds

A

Integration

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

is the Philippines’ financial intelligence unit, which is tasked to implement the AMLA

A

Anti-Money Laundering Council (AMLC)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

(AMLC) is composed of:

A

1) Governor of the Bangko Sentral ng Pilipinas (BSP) as Chairman.
2) Commissioner of the Insurance Commission (IC) as member.
3) Chairman of the Securities and Exchange Commission (SEC) as member.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

KYC RULE

A

Know
Your
Client

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What are the covered institutions in AMLC?

A

Banks
pawnshops
Insurance companies, pre-need companies
SecuritiesPhilippine Gaming Corporations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

are a critical function to assess
customer risk and a legal requirement to comply with Anti-Money Laundering (AML) laws.

A

KYC Proceedures

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

KYC Proceedures

A

1) Customer Identification
2) Customer Due Diligence
3) On Data Privacy

20
Q

Vice Mayor to Kagawad, Medium Businesses

A

Normal Risk

21
Q

No possibility you will get involved in illegal activities (Students, Sari-sari stores)

A

Low Risk

22
Q

PEPS (Vice Mayor, Mayor, Big Companies)

A

High Risk

23
Q

Relatives of high-risk politicians

A

First Degree

24
Q

Customer Identification:

A

✔ Name
✔ Date of birth
✔ Address
✔ Identification number

25
Q

Transaction in cash or other equivalent monetary instruments involving a total amount in excess of P500,000.00 within one business day.

A

Covered transactions

26
Q

✔ there is no underlying legal or trade obligation, purpose or economic justification

A

Suspiscious transactions

27
Q

Such data will only be used for the purposes specified at the time the information is collected or as permitted by law, unless otherwise agreed with the client.

A

On Data Privacy

28
Q

The privacy of individual client data will be respected in accordance with the laws and regulations of individual jurisdictions.

A

On Data Privacy

29
Q

✔ the client is not properly identified

A

suspicious transactions

30
Q

✔ the amount involved is not commensurate with the business or financial capacity of the client;

A

suspicious transactions

31
Q

other offenses punishable under the AMLA, as amended:

A

Failure to keep records
Malicious reporting
Breach of Confidentiality
Administrative offenses

32
Q

is committed by any responsible official or employee of a covered institution who fails to maintain and safely store all records of transactions for 5 years from the dates the transactions were made or when the accounts were closed.

A

Failure to keep records

33
Q

is committed by any person who, with malice or in bad faith,
reports or files a completely unwarranted or false information regarding a money laundering transaction against any person.

A

Malicious reporting

34
Q

The penalty is 6 months to 4 years imprisonment and a fine of not less than P100,000.00 but not more than P500,000.00.

A

Malicious reporting

35
Q

In case the prohibited information is reported by media, the responsible reporter, writer, president, publisher, manager, and editor-in-chief are held criminally liable.

A

Breach of Confidentiality

36
Q

when you break a rule in your contact.

A

Breach of Contract

37
Q

The AMLC, after due investigation, can impose fines from P100,000.00 to P500,000.00 on officers and employees of covered institutions or any person who violates the provisions of the AMLA.

A

Administrative offenses

38
Q

They show the results of operation,
financial condition, changes in owner’s equity, and sources and uses of cash.

A

FINANCIAL STATEMENTS

39
Q

are the product of financial Accounting.

A

FINANCIAL STATEMENTS

40
Q

discusses the business enterprise’s products, services, facilities, and future directions in both numbers and narrative form.

A

Review of Operations

41
Q

provides comparative financial statement information and covers important points such as profitability, sales, dividends, market price of share capital, and asset acquisitions.

A

Highlights

42
Q

4 types of audit opinions:

A

Unqualified Opinion
Qualified Opinion
Disclaimer of Opinion
Adverse Opinion

43
Q

When a severe scope limitation exists, the auditor may decide to offer a disclaimer of opinion. A disclaimer indicates that the auditor was unable to form an opinion on the fairness of the financial statements.

A

Disclaimer of Opinion

44
Q

if the company has placed a “scope limitation” on CPA’s work.

A

Qualified Opinion

45
Q

the CPA is satisfied that the business enterprise’s financial statements present fairly its financial position and results of operations

A

Unqualified Opinion

BusFin (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions