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5 Cards in this Set
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Annual Anti-Money Laundering training is required( )New Hires only( )Current and new hire Mortgage Loan Originators only ( )Company Officers only(x)Current employees and new hires ← Correct answer |
Explanation:7 Train employeesAll companies should develop a training program including any of the following1. Educational pamphlets,2. Videos,3. Intranet systems,4. In-person lectures and5. Explanatory memosThis training is required annually for current employees and within 30 days for all new hires (regardless if they had the training at another company or bank) |
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This training is required within ____ days for all new hires.(x)30 ← Correct answer( )10( )5( )15 |
Explanation:U1: 7 Train employeesAll companies should develop a training program including any of the following1. Educational pamphlets,2. Videos,3. Intranet systems,4. In-person lectures and5. Explanatory memosU1: 7 Train employeesThis training is required annually for current employees and within 30 days for all new hires (regardless if they had the training at another company or bank) |
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Generally Money Laundering occurs in ______ stages.( )5( )2(x)3 ← Correct answer( )10 |
Explanation:4 CASE STUDY 1: Sample of AML PolicyMoney laundering is generally defined as engaging in acts designed to conceal or disguise the true origins of criminally derived proceeds so that the proceeds appear to have derived from legitimate origins or constitute legitimate assets. Generally, money laundering occurs in three stages. Cash first enters the financial system at the "placement" stage, where the cash generated from criminal activities is converted into monetary instruments, such as money orders or traveler's checks, or deposited into accounts at financial institutions. At the "layering" stage, the funds are transferred or moved into other accounts or other financial institutions to further separate the money from its criminal origin. At the "integration" stage, the funds are reintroduced into the economy and used to purchase legitimate assets or to fund other criminal activities or legitimate businesses. |
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Which Agency must a mortgage company provide with contact information for the AML Compliance person?( )CFPB( )Federal Reserve( )HUD(x)FINRA ← Correct answer |
Explanation:The company must provide FINRA with contact information for the AML Compliance Person, including:Name;Title;Mailing address;Email address;Telephone number; andFacsimile number through the FINRA Contact System (FCS). |
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IT IS CORRECT THE TEST IS WRONG Which of the following involves moving the proceeds into a seemingly legitimate form. Integration may include the purchase of automobiles, businesses, real estate, etc?(x)Integration ← Wrong answer( )None of these( )Placement( )Layering IT SAYS PLACEMENT IS THE RIGHT ONE |
Explanation:3 Stages of Money Launderinghttp://www.fincen.gov/financial_institutions/msb/materials/en/prevention_guide.html1. Placement involves physically placing illegally obtained money into the financial system or the retail economy. Money is most vulnerable to detection and seizure during placement. 2. Layering involves separating the illegally obtained money from its criminal source by layering it through a series of financial transactions, which makes it difficult to trace the money back to its original source. 3. Integration involves moving the proceeds into a seemingly legitimate form. Integration may include the purchase of automobiles, businesses, real estate, etc. |
