31 Questions
What is the main focus of the Money Laundering (Prevention and Prohibition) Act, 2022?
Preventing money laundering and terrorist financing
According to the passage, when does money laundering occur?
Both a and b
How is money laundering generally defined?
Engaging in acts designed to conceal or disguise the true origins of criminally derived proceeds
What is the primary reason for NNPC Limited to take steps to prevent money laundering and terrorist financing?
To protect its reputation and comply with the law
What are the potential consequences for NNPC Limited if it is exploited for money laundering or terrorist financing?
Damage to reputation and legal non-compliance
According to the passage, what is the purpose of NNPC Limited's policies related to money laundering and terrorist financing?
To prevent NNPC Limited from being used as conduits for financial crimes
What constitutes money laundering according to the passage?
Concealing criminally derived proceeds to appear legitimate
Why is NNPC Limited at risk of being exploited for money laundering or terrorist financing?
As a result of inadequate regulatory compliance
What are the potential consequences for NNPC Limited if it fails to prevent money laundering and terrorist financing?
Deterioration of corporate image and legal repercussions
How can NNPC Limited protect itself from being exploited for money laundering or terrorist financing?
By adopting and implementing appropriate policies
According to the NNPC Limited's Code of Conduct, what is the main purpose of the AML/CFT/CPF training?
Educating employees on the latest developments in the prevention of money laundering, terrorist financing, and proliferation financing
What does 'knowledge' include according to the NNPC Limited's Code of Conduct?
The concept of 'wilful blindness'
What should an employee do if they are aware of any violation of the Policy as per the NNPC Limited's Code of Conduct?
Refer it to the relevant regulatory and compliance unit
What action must an employee take if they have knowledge or suspicion that a counterparty is involved in money laundering in connection with its transaction with NNPC Limited?
Promptly report it to the relevant regulatory and compliance unit
What is one of the requirements for NNPC Limited’s employees to be fully aware of their relevant legal obligations?
Establish and implement an employee training program
What should employees do regarding business transactions on behalf of NNPC Limited as per the Code of Conduct?
Ensure that transactions do not involve acquiring, using, or holding monetary proceeds or property acquired with the proceeds of crime
What should employees not do with criminals, suspected criminals, or the proceeds of crime according to the NNPC Limited's Code of Conduct?
Knowingly deal with them
What is prohibited for employees in relation to money laundering/terrorist financing/proliferation financing laws according to the NNPC Limited's Code of Conduct?
Knowingly participate or assist in laundering funds or funding terrorist financing and proliferation
What is required for employees in relation to AML training according to NNPC Limited's Code of Conduct?
Complete AML training in the form of a recognized qualification
What is an important aspect emphasized in NNPC Limited’s AML/CFT/CPF training?
The importance of the vendors/investors/business partners’ due diligence and identification measures required for money laundering prevention purposes
What are the three pillars of NNPC's Anti Money Laundering Policy?
Understanding vendors/investors/business partners, complying with laws, and ongoing employee training
What is the primary purpose of vendor onboarding according to the passage?
To obtain identifying information and understand risk of vendors/investors/business partners
What is NNPC's expectation from third parties and business partners?
To conduct themselves ethically and cooperate in due diligence assessments
What is the yearly screening process for NNPC's vendor list aimed at preventing?
Preventing money laundering/terrorist financing risks by banning entities
What should be avoided in contractual relationships according to NNPC's Anti Money Laundering Policy?
Avoiding identification of prohibited entities or 'shell' companies
What is the focus of NNPC Limited's Anti Money Laundering Policy?
Focused on mitigating risks including reputation, compliance, operational, and legal risks
What is the main emphasis of NNPC's expectations from its employees?
Ethical conduct and cooperation in due diligence assessments
What are the key components included in Vendor/Investor/Business Partner Due Diligence?
Obtaining identifying information, understanding risk, and categorizing based on risk parameters
What is the consequence for NNPC Limited if it fails to prevent money laundering or terrorist financing?
Financial penalties and potential criminal liability
What is the purpose of NNPC's yearly screening of its vendor list against international sanction lists?
Ensuring no onboarded vendors are banned entities involved in money laundering/terrorist financing
What is the main objective of NNPC's Anti Money Laundering Policy?
Mitigating risks related to reputation, compliance, and legal matters
Study Notes
- NNPC Limited faces Money Laundering/Terrorist Financing/Proliferation Financing risks: reputation, compliance, operational, and legal.
- NNPC's Anti Money Laundering Policy has three pillars: understanding vendors/investors/business partners, complying with laws, and ongoing employee training.
- Vendor/investor/business partner due diligence includes vendor onboarding and contractual relationships.
- Vendor onboarding: obtain identifying information, understand risk, and categorize vendors/investors/business partners based on risk parameters.
- Contractual relationships: do not enter into relationships with prohibited entities or 'shell' companies, identify source of funds, and screen against international sanction lists.
- NNPC expects third parties and business partners to conduct themselves ethically and cooperate in due diligence assessments.
- NNPC expects employees to conduct themselves ethically and not assist in violating the policy.
- NNPC shall on a yearly basis screen its vendor list against international sanction lists to ensure no onboarded vendors/investors/business partners are banned entities.
Test your knowledge of anti-money laundering, combating the financing of terrorism, and proliferation financing policies. This quiz covers the requirements under the Money Laundering (Prevention and Prohibition) Act, 2022, and the definition of money laundering.
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