ICA: AML and CTF Compliance

<p>To effectively protect firms by preventing criminals from laundering money and benefiting from illegal activities. (B)</p> Signup and view all the answers

<p>Direct their comments or enquiries to the owners of the website in question. (B)</p> Signup and view all the answers

<p>The International Compliance Association and the authors do not accept responsibility for any errors or losses sustained by reliance on its contents. (A)</p> Signup and view all the answers

<p>Report the issue to the website owners and verify the information through other reliable sources. (C)</p> Signup and view all the answers

<p>Protection by stopping criminals from benefiting from their crimes. (D)</p> Signup and view all the answers

<p>The legal obligation to report suspicious activity versus the ethical duty to protect customer privacy and confidentiality. (B)</p> Signup and view all the answers

<p>Layering (B)</p> Signup and view all the answers

<p>It enables the development of targeted controls and risk mitigation strategies tailored to each service. (D)</p> Signup and view all the answers

<p>Correspondent banking (A)</p> Signup and view all the answers

<p>Purchasing a luxury yacht with cash obtained from illegal drug sales. (C)</p> Signup and view all the answers

<p>It helps focus resources on identifying and disrupting specific financial channels used by terrorists. (C)</p> Signup and view all the answers

<p>To disguise the origins of illegally obtained money, making it appear legitimate. (B)</p> Signup and view all the answers

<p>They restrict access to the international financial system for targeted entities and jurisdictions. (A)</p> Signup and view all the answers

<p>It provides intelligence on links, profiles, and operational methods of terrorists. (B)</p> Signup and view all the answers

<p>International networks need significant funding, while singular attackers don't need as much financial support to produce damages. (C)</p> Signup and view all the answers

<p>An individual who commits acts of terror without the direct involvement or command of a terror group. (B)</p> Signup and view all the answers

<p>To influence society to change their ideals through acts of terror. (D)</p> Signup and view all the answers

<p>Individual attacks can be funded by small sums of money making them difficult to detect. (A)</p> Signup and view all the answers

<p>The methods and sources of terrorism financing are constantly changing, adapting to new technologies and circumstances. (A)</p> Signup and view all the answers

<p>Investing in real estate to be used for housing terrorist cells and materials. (C)</p> Signup and view all the answers

<p>It provides critical intelligence for building a profile of terrorist operations. (B)</p> Signup and view all the answers

<p>Making approximately $8.9 million in payments to consultants in Russia, linked to operations and poker legalization efforts. (C)</p> Signup and view all the answers

<p>Improperly documenting a $10.5 million payment to a consultant to help the company retain mining rights. (D)</p> Signup and view all the answers

<p>Depletion of national wealth through misallocation of public resources. (D)</p> Signup and view all the answers

<p>Bribery schemes in multiple countries along with books and records violations. (C)</p> Signup and view all the answers

<p>It erodes public trust in institutions and encourages apathy. (A)</p> Signup and view all the answers

<p>Active bribery is offering a bribe, while passive bribery is requesting or accepting a bribe. (C)</p> Signup and view all the answers

<p>Unrestricted destruction and exploitation of natural resources due to lack of regulation enforcement. (C)</p> Signup and view all the answers

<p>To enjoy the money without the risk of detection or confiscation. (D)</p> Signup and view all the answers

<p>A company negligently fails to implement adequate measures to prevent bribery, and an employee engages in bribery. (A)</p> Signup and view all the answers

<p>Using complex money laundering schemes to hide the origin and destination of funds. (B)</p> Signup and view all the answers

<p>The UK Bribery Act includes a specific offense for failing to prevent bribery, whereas the FCPA does not. (A)</p> Signup and view all the answers

<p>Tax evasion taints legitimately earned money by failing to declare it, thus rendering it 'proceeds of crime'. (B)</p> Signup and view all the answers

<p>Large infrastructure projects like dams often provide more opportunities for personal enrichment through inflated contracts and kickbacks. (A)</p> Signup and view all the answers

<p>The deliberate misrepresentation or deceitful concealment of earnings. (A)</p> Signup and view all the answers

<p>By providing the means to track and confiscate assets derived from corruption, as the same techniques used for money laundering are employed. (A)</p> Signup and view all the answers

<p>A significant portion of the population becomes apathetic towards political processes, assuming that all leaders are dishonest. (B)</p> Signup and view all the answers

<p>Utilizing complex, layered transactions to obscure the origin and destination of funds, blending them with legitimate financial activities. (D)</p> Signup and view all the answers

<p>By opening multiple accounts, making transactions below reporting thresholds, and using debit cards for withdrawals shortly after deposits. (D)</p> Signup and view all the answers

<p>To obscure the link between the source, movement, and destination of illicit funds. (C)</p> Signup and view all the answers

<p>Because it provides a legitimate cover for illicit activities, such as funding terrorism. (C)</p> Signup and view all the answers

<p>The lines between legitimate and illicit transactions become blurred, hindering identification efforts. (C)</p> Signup and view all the answers

<p>To expose and disrupt its use as a front for collecting and transferring funds for illicit purposes. (D)</p> Signup and view all the answers

<p>Monitoring individuals making frequent small withdrawals from ATMs after a series of deposits. (C)</p> Signup and view all the answers

<p>Because the transactions are commingled with normal financial activity. (B)</p> Signup and view all the answers

The process of making illegally obtained money appear legitimate.

Funding of activities intended to cause harm or terror, derived from legal or illegal sources.

Crimes that result in financial loss or gain through deceit or illegal acts.

Measures taken to discourage illegal activities.

The act of discovering illegal activities or processes.

Adhering to laws and regulations in financial operations.

Following laws that restrict dealings with particular countries or entities.

The guidelines and rules imposed by authorities to control financial operations.

Property derived from illegal activities, often laundered to hide its source.

Funding activities related to the development of weapons of mass destruction.

Penalties or restrictions imposed by countries or international bodies to deter illegal activities.

A framework describing the stages of money laundering: placement, layering, and integration.

The initial stage of money laundering where illicit funds are introduced into the financial system.

Weaknesses in financial services where money laundering can occur.

Corruption reduces national wealth by misallocating resources to benefit politicians instead of communities.

Corrupt leaders prioritize flashy projects like dams over urgent needs like schools and roads.

Corruption distorts competition and creates unfair market structures, discouraging investment.

Corruption erodes public trust in political systems and institutions, hindering anti-corruption efforts.

Corruption leads to careless exploitation of natural resources due to weak enforcement of regulations.

Corrupt proceeds are disguised through money laundering, making detection difficult.

Bribery involves offering money for unethical advantages, often leading to corruption.

Bribe payers often conceal their financial ties to corrupt officials through complex schemes.

The Foreign Corrupt Practices Act, which prohibits bribery of foreign officials.

The act of giving, promising, or offering a bribe.

The act of requesting or agreeing to receive a bribe.

A UK law that outlines offenses related to bribery, including active and passive bribery.

Offering a bribe to a foreign public official to influence their decisions.

A new offense introduced by the UK Bribery Act for companies failing to prevent bribery.

Illegally avoiding paying taxes, often through misrepresentation or concealment.

Money gained through criminal activities, such as tax evasion.

An organization involved in both humanitarian efforts and illicit funding.

Creating complex transactions to obscure the origins of money.

A system enabling terrorists to move and store funds worldwide.

Mixing illegal actions with legitimate financial operations.

Patterns of withdrawing cash using ATMs to avoid detection.

Inconspicuous transactions that evade scrutiny.

Moving funds between different countries to obscure origins.

The financial strategies used by hijackers to fund terrorist activities.

Funds used by terrorist organizations may come from bank accounts, investments, or real estate.

Individuals who commit terrorist acts alone, without group support or direction.

Monitoring funds helps disrupt terrorist financing and understand their operations.

Terrorist groups form around shared political, religious, or ideological beliefs.

The strategies and funding of terrorism change over time, adapting to new challenges.

Networks require substantial funds to sustain and promote their terrorist activities.

Groups that operate together, relying on shared funds and goals to facilitate attacks.

A growing trend of terrorism associated with right-wing ideologies and movements.