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Flashcards in AML Standards Part 2 Deck (28)
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1
Q

what did the first EU directive confine predicate offenses of ML to

A

drug trafficking

2
Q

what did the second expand it to

A

to cover not just drug trafficking, but all serious crimes, including corruption and fraud against the financial interests of the European Community

3
Q

what was the first big change of the third directive

A

defined ML and TF as separate crimes

4
Q

what else did it extend regarding customer identification and suspicious activity reporting obligations

A

to trusts and company service providers, life insurance intermediaries, and dealers selling goods for cash payments of more than 15,000 euros

5
Q

what is the first big change for the 4th directive

A

the threshold for entities obliged to report suspicious transactions decreased from 15k to 10k euros

6
Q

what is the second regarding gambling

A

the scope of obliged entities was enlarged from just casinos to all providers of gambling services

7
Q

what is the third regarding CDD

A

CDD is to be applied for transfers of funds exceeding 1,000 euros

8
Q

who doe the USA patriot act have implications for

A

US institutions and non-US institutions that do business in the US

9
Q

what premise do key provisions of the act stem from

A

that international access points to the US financial system must be controlled

10
Q

what is section 311 entitled

A

special measures for primary money laundering concerns

11
Q

what does this section provide

A

the US treasury dept with the authority to apply graduated proportionate measures against a foreign jurisdiction, foreign financial institution, a type of international transaction, or a type of account that

12
Q

that what

A

the treasury secretary determines to be a “primary money laundering concern.”

13
Q

by designating a country or a financial institution as a primary money laundering concern, what can the US government do

A

force US banks to halt many of their financial dealings with the designee

14
Q

what are the 5 special measures

A
  1. keep records or file reports on certain financial transactions
  2. obtain information on BO
  3. obtain info about customers who are permitted to use a foreign bank’s payable through account
  4. obtain info about customers who are permitted to use a foreign bank’s correspondent account
  5. close certain payable-through or correspondent accounts
15
Q

what does section 312 deal with

A

correspondent and private banking accounts

16
Q

what are the three measures that a due diligence program must address regarding correspondent banking

A
  1. determining whether EDD is necessary
  2. assessing the ML risk presented by the correspondent account
  3. applying risk-based procedures and controls reasonably designed to detect and report suspected ML
17
Q

what is a private banking account defined as under the rule

A

an account with a minimum aggregate deposit of 1 million dollars

for one or more non us people and

which is assigned to a bank employee acting as a liaison with the non-US person

18
Q

for covered private banking accounts US institutions must take reasonable steps to what (4 bullets)

A
  1. ascertain the identity of all nominal and beneifical owners of the accounts
  2. ascertain whether any such owner is a SPF
  3. ascertain he source of the funds in the account and the purpose and expected use of the account
  4. monitor the account to ensure the activity is consistent with the information provided as to the source of funds and the purpose and expected use of the account
19
Q

what is section 313

A

prohibition non correspondent accounts for foreign shell banks

20
Q

what is the term physical presence defined as

A

a place of business that is maintained by a foreign bank located at a fixed address (as opposed to solely an electronic address) where

21
Q

where what

A

it is authorized to conduct banking activities

employs one or more individuals on a full time basis at that location

maintains operating records at that location

is subject to inspection by the banking authority which licensed it at that location

22
Q

what does 314 a allow

A

law enforcement agencies through fincen to reach out to obtain info

23
Q

what does 314 b allow

A

provides financial institutions with the ability to share info with one another under a safe harbor that offers protections from liability.

24
Q

what is 319 called

A

forfeiture from US correspondent account

25
Q

what occurs here

A

in situations where funds have been deposited with a foreign bank, this section permits the US government to seize funds in the same amount from a correspondent bank account in the US that has been opened and maintained for the foreign bank

26
Q

is the government required to trace the funds

A

no, because they are deemed to have been deposited into the correspondent account

27
Q

what is 319 b called

A

records relating correspondent accounts for foreign banks

28
Q

what happens here

A

allows the appropriate federal banking agency to require a financial institution to provduce within 5 days records or information related to the instiuttions aML compliance or related to a customer of the institution