Module 2 (Part 1)

Question 1

What does module 2 cover

Answer 1

International AML/CFT Standards

Question 2

When did the pace of international activity in the anti money laundering field accelerate

Answer 2

in 1989

Question 3

what occurred then

Answer 3

the group of seven nations launched FATF

Question 4

what does FATF stand for

Answer 4

Financial Action Task Force

Question 5

what was it originally referred to as

Answer 5

the G-7 Financial Action Task Force

Question 6

what does FATF serve as

Answer 6

the vanguard in promulgating AML guidance to governmental bodies around the globe

Question 7

Where is FATF based

Answer 7

at the organization for Economic Cooperation and Development in Paris

Question 8

What is topic 1

Answer 8

FATF financial action task force

Question 9

What are FATF’s objectives

Answer 9

to set standards and promote effective implementation of legal, regulatory, and operational measures for combatting money laundering, terrorist financing, and other related threats

Question 10

Starting with its own members what does FATF monitor

Answer 10

countries’ progress in implementing the FATF recommendations

Question 11

What does FATF review

Answer 11

money laundering and terrorist financing techniques and counter-measures

Question 12

What does FATF promote

Answer 12

the adoption and implementation of the FATF recommendations globally

Question 13

How does FATF fulfill its stated objectives

Answer 13

by spreading the AML message worldwide

Monitoring the implementation of the FATF recommendations among its members

Question 14

What are the 2 ways in which FATF monitors the implementation of FATF recommendations among its members

Answer 14

Technical Compliance Assessment

Effectiveness Assessment

Question 15

What does the technical compliance assessment do

Answer 15

evaluates the specific requirements of the FATF Recommendations

Question 16

including what

Answer 16

how a member relates them to its relevant legal and institutional framework, and the powers and procedures of its competent authorities

Question 17

what is the focus on in the technical compliance assessment

Answer 17

the fundamental building blocks of an AML/CFT System

Question 18

What does FATF do with the effectiveness Assessment

Answer 18

seeks to assess the adequacy of a member’s implementation of the FATF Recommendations

Identifies the extent to which a member achieves a defined set of outcomes that are central to a robust AML/CFT system

Question 19

what is the focus on

Answer 19

the extent to which the legal and institutional framework of the member is producing the expected results

Question 20

what do both the technical compliance assessment and effectiveness assessment provide FATF

Answer 20

an integrated analysis of

the extent to which the country is compliant with the FATF Recommendations and

how successful it is in maintaining a strong AML/CFT system

Question 21

What is a key element of FATFs efforts

Answer 21

its detailed list of appropriate standards for countries to implement

Question 22

What are these measures set out in

Answer 22

the 40 recommendations

Question 23

when were these first issued

Answer 23

1990

Question 24

when were they subsequently revised

Answer 24

1996
2003
2012

Question 25

What do the 40 recommendations provide

Answer 25

a complete set of countermeasures against ML and Terrorist Financing

Question 26

what are the 5 areas they cover

Answer 26

1. The identification of risks and development of appropriate policies 2. The criminal justice system and law enforcement 3. The financial system and its regulation 4. The transparency of legal persons and arrangements 5. International cooperation

Question 27

What did the 2012 revision include

Answer 27

incorporated the 9 special recommendations on terrorist financing into the 40 recommendations

Question 28

What are Recommendations 1-2 subheading

Answer 28

AML/CFT Policies and coordination

Question 29

What do these recommendations cover

Answer 29

1. Assessing risks and applying a risk-based approach | 2. National Cooperation and coordination

Question 30

What is Group 2 Recommendations 3-4 subheading

Answer 30

Money Laundering and Confiscation

Question 31

What do these recommendations cover

Answer 31

1. Money laundering offenses | 2. Confiscation and provisional measures

Question 32

What is group 3 Recommendations 5-8 sub heading

Answer 32

Terrorist financing and financing of proliferation

Question 33

What do these recommendations cover

Answer 33

1. Terrorist financing offenses 2. Targeted Financial sanctions related to terrorism and terrorist financing 3. Targeted financial sanctions related to proliferation 4. Non-profit organizations

Question 34

what is group 4 recommendations 9-23 heading

Answer 34

financial and non-financial institution preventative measures

Question 35

What do these recommendations cover(6 of them)

Answer 35

1. Financial institution secrecy laws 2. customer due diligence and record keeping 3. Additional measures for specific customers and activities 4. reliance, controls and financial groups 5. reporting of suspicious transactions 6. Designated non-financial businesses and professions

Question 36

What is the group 5 heading recommendations 24-25

Answer 36

transparency and beneficial ownership of legal persons and arrangements

Question 37

what are the two areas this covers

Answer 37

1. transparency and beneficial ownership of legal persons | 2. transparency and beneficial ownership of legal arrangements

Question 38

What is the heading of group 6 recommendations 26-35

Answer 38

Powers and responsibilities of competent authorities and other institutional measures

Question 39

what are the 4 areas this covers

Answer 39

1. Regulation and supervision 2. operational and law enforcement 3. General requirements 4. sanctions

Question 40

What is the subheading of group 7 recommendations 36-40

Answer 40

international cooperation

Question 41

what are the 5 areas it covers

Answer 41

1. international instruments 2. mutual legal assistance 3. mutual legal assistance regarding freezing and confiscation 4. Extradition 5. Other forms of international cooperation