Groups

Question 1

Only mandatory group

Answer 1

European Union

Question 2

Central Bank Governors of the G-10

Answer 2

Basel Committee

Question 3

primary global standard-setter for the prudential regulation of banks and provides a forun1 for cooperation on
banking supervisory matters. Its mandate is to strengthen the regulation, supervision and practices
of banks worldwide with the purpose of enhancing financial stability.

Answer 3

Basel Committee

Question 4

Principles called Prevention of Criminal Use
of the Banking System for the Purpose of Money Laundering

Core Principles for Effective Banking Supervision

Customer Due Diligence for Banks

Answer 4

Basel Committee

Question 5

association of 13 global banks

Answer 5

Wolfsberg Group

Question 6

aims to develop financial services
industry standards and guidance related to know your customer anti-money laundering and counter-
terrorist financing policies.

Answer 6

Wolfsberg Group

Question 7

Anti-Money Laundering Principles for Private Banking

AML Principles on private, correspondent banking. Statements on TF

Answer 7

Wolfsberg Group

Question 8

provide a forum for FIUs around the world to improve cooperation in the fight against money laundering and financing of terrorism
and to foster the in1plementation of domestic programs in this field.

Answer 8

Egmont Group

Question 9

required the members to enact legislation to prevent their domestic financial systems from being used for money laundering

Answer 9

1st EU Directive

Question 10

The definition of criminal
activity was expanded to cover not just drug trafficking, but all serious crimes, including
corruption and fraud against the financial interests of the European community.

Answer 10

2nd EU

Question 11

It explicitly brought bureaux de change and money remittance offices under AML coverage.

Answer 11

2nd EU

Question 12

It clarified that knowledge of criminal conduct can be inferred from objective factual
circumstances.

Answer 12

2nd EU

Question 13

defining money laundering and terrorist financing as separate crin1es.

Answer 13

3rd EU

Question 14

extending customer identification and suspicious activity reporting obligations to trusts and company service providers, life insurance intermediaries, and dealers selling goods for cash
payments of more than 15,000 euros;

Answer 14

3rd EU

Question 15

detailing a risk-based approach to customer due diligence. The extent of due diligence that is
performed on customers, whether simplified or enhanced, should be dependent on the risk of
money laundering or terrorist financing they pose;

Answer 15

3rd EU

Question 16

protecting employees who report suspicions of money laundering or terrorist financing. This
provision instructs member states to “do whatever is in their power to prevent employees from
being threatened”;

Answer 16

3rd EU

Question 17

obligating member states to keep comprehensive statistics regarding the use of and results
obtained from suspicious transaction reports, such as the number of suspicious transaction
reports filed; the follow-up given to those reports; and the annual number of cases investigated,
persons prosecuted and persons convicted; and

Answer 17

3rd EU

Question 18

requiring all financial institutions to identify and verify the beneficial owner of all accounts
held by legal entities or persons. “Beneficial owner” refers to the natural person who directly
or indirectly controls more than 25 percent of a legal entity or person.

Answer 18

3rd EU

Question 19

The scope of the Third Directive differs from the Second Directive in that

Answer 19

• it specifically includes the category of trust and company service providers;
• it covers all dealers trading in goods who trade in cash over 15,000 euros; and
• the definition of financial institution includes certain insurance intermediaries.

Question 20

Natural or legal persons trading in goods will be covered to the extent that they make or receive
cash payments of EUR 10,000 or more ( decreased from EUR 15,000)

Answer 20

4th EU

Question 21

The scope of obliged entities was enlarged from just casinos to all “providers of gambling
services.”

Answer 21

4th EU

Question 22

Customer due diligence is to be applied for transfers of funds exceeding 1,000 euros.

Answer 22

4th EU

Question 23

Tax crimes relating to direct and indirect taxes are included in the broad definition of criminal
activity, in line with the revised FATF Recommendations.

Answer 23

4th EU

Question 24

An explanation of “financial activity on an occasional or very limited basis” was included.

Answer 24

4th EU

Question 25

The European Commission must submit a report every 2 years on the findings of the risk assessment of ML and TF affecting the internal market.

Answer 25

4th EU

Question 26

The EU executive is also in charge of identifying third-country jurisdictions having strategic deficiencies with regard to AML and CIT (i.e., high-risk third countries).

Answer 26

4th EU

Question 27

Special attention is given to PEPs. In this regard, enhanced due diligence (EDD) should be applied to every PEP, whether the individual is a domestic or third-country citizen. The risk these people pose is for at least 12 months and measures they are subject to must also be applied to their family members and their known close associates.

Answer 27

4th EU

Question 28

``` For groups (and their branches and subsidiaries), this directive sets the criteria for adequate compliance related to third parties for customer due diligence. ```

Answer 28

4th EU

Question 29

New requirements regarding beneficial ownership information have been introduced, particularly for trusts and similar legal aJ.Tangements. Subject to data protection rules, this information must be held in central registers in each member state and must be made available to competent authorities, financial intelligence units (FIUs), obliged entities and any person with legitimate interest.

Answer 29

4th EU

Question 30

Data in the statistics relevant to the effectiveness of systems to combat ML and TF were enlarged to include, for instance, size and importance of sectors or the number of cross-border requests for information dealt with by FIUs.

Answer 30

4th EU

Question 31

Obliged entities that are part of a group are required to implement group-wide policies and procedures as well as to take measures proportionate to their risks. Criminals or their associates, convicted in relevant areas, are prevented from holding management functions or indirectly controlling certain obliged entities.

Answer 31

4th EU

Question 32

With regard to penalties for breach of the provisions, the set of administrative sanctions and measures now range from "name and shan1e" to withdrawal of authorization. Pecuniary sanctions for natural persons are set to at least 5 million euros or 10 percent of the total annual turnover for entities.

Answer 32

4th EU

Question 33

An entire section of the directive is dedicated to the rules for cooperation between member state FIUs, the European Supervisory Authorities (ESAs) and the EU Commission.

Answer 33

4th EU

Question 34

Because it is a directive and not a regulation, this legislative act gives some discretion to member states on the application of the provisions.

Answer 34

4ht EU

Question 35

At the national level, the Directive requests that member states conduct a risk assessment as well as designate a responsible authority. Moreover, they must ensure that obliged entities take appropriate steps to identify and assess their own risks. Non exhaustive lists of potentially lower and higher risks are provided for guidance in these risk assessments and are based on Customer, Product, Geographic Risk

Answer 35

4th EU