Work Test Flashcards
(26 cards)
Structuring
Breaking large transactions into smaller ones to avoid reporting thresholds 
Commingling of funds
Mixing illegal money with legal businesses, funds tied its source
False invoicing
Using fake or inflated invoices to move or hide money.
Tax Evasion
Illegally avoiding taxes by hiding income or lying on tax returns.
The Four-Step Model is designed to?
Identify and assess customer risk to prevent financial crime.
1.Identify the customer 2. Verify identity 3. Assess risk 4. Monitor activity
The overall control environment is a set of ___?
Standards, processes, and structures that provide the foundation for carrying out internal controls.
Delivery channel risk is associated with? (Pick 3)
The method used to deliver financial products or services to customers.
• Correspondent banking
• Payable-through accounts
• Concentrated accounts
What is the primary European Union money laundering regulation (5th)
5th anti-money laundering directive
what is the primary legislation for money laundering in the United States?
Bank security act (1979)
What is a primary money laundering regulation in the United Kingdom? (2019)
The money, laundering and Terrace financing (amendment) regulation 2019 
What is gatekeeping?
When someone protects a client from being closely examined, possibly helping them hide wrongdoing.
Nominee (director)
A person listed as a company director in name only, who acts on behalf of someone else to hide the real owner’s identity.
Primary risk concern of KYC
Legal, regulatory, reputational 
What is the best source of identifying high risk countries for money laundering 
FATF list of high risk and other monitored jurisdictions 
What’s a low risk activity for an investment firm that client assets?
Dealing with and receiving funds from clients directly 
What’s the strongest source of wealth evidence?
Audit financial statements 
What’s the best source to resolve a revenue discrepancy in source of wealth (SoW)
Text Damon from an independent accountant
What document confirms a change of residency
Government issue ID with photo, name, and new address
What defines the alert resolution process when data is missing(Wolfsburg)?
Risk assessment 
What’s the consequence of transposing DOB on a background check?
Noncompliance with the banks CDD policy
What to do first if a dormant client suddenly moves large cash
Seek a ration now for the activity
What is the first action after customer changes account behavior unexpectedly?
A phallic, suspicious activity report(SAR)
A client set up a subsidiary in a noncompliant jurisdiction. Next step?
Request a copy of the tax advice and classify the client at high risk
What reduces tax evasion risk most effectively
CRS form or voluntary disclosure program submission
