Anti Money Laundering

Which regulations were repealed by the UK Money Laundering Regulations 2007?

UK Money Laundering Regulations 2003

What legislation consolidated, updated, and reformed the law to include any dealing in criminal property worldwide?

Proceeds of Crime Act 2002

Which act set out specific obligations to combat terrorist financing?

Terrorism Act 2000

Which of the following is a potential red flag for money laundering?

Submitting multiple mortgage applications with common references Signup and view all the answers

Who is responsible for making contact with the National Crime Agency (NCA) after reporting suspicions of money laundering?

The Money Laundering Reporting Officer (MLRO/NO) Signup and view all the answers

What should firms do after making a disclosure to the NCA?

Continue monitoring for additional transactions Signup and view all the answers

Which government agency maintains the UK Consolidated Financial Sanctions List?

HM Treasury (HMT) Signup and view all the answers

What is the maximum punishment for 'failure to report'?

Five years imprisonment Signup and view all the answers

Who is considered a Politically Exposed Person (PEP)?

An individual entrusted with prominent public functions Signup and view all the answers

When does the obligation to apply Enhanced Due Diligence measures for PEPs cease?

After one year of leaving office Signup and view all the answers

Which situations require the application of EDD under the new regulations?

Any case where the firm has identified a high risk of Money Laundering/Terrorist Financing Signup and view all the answers

When should a suspicion of money laundering be reported to the MLRO/NO?

All suspicions, regardless of the outcome Signup and view all the answers

What is the aim of the placement stage in money laundering?

To get the money out of cash and into the non-cash economy Signup and view all the answers

What is the maximum punishment for a 'tipping-off' offence?

Five years imprisonment or/and a fine Signup and view all the answers

What is the consequence of failing to report knowledge or suspicion of money laundering?

It is an offence Signup and view all the answers

Which of the following situations may give rise to suspicion of money laundering?

A client regularly repaying outstanding capital in cash Signup and view all the answers

What should be done if a client states a difference between actual income and reported income?

Report it to the MLRO Signup and view all the answers

Who are considered as politically exposed persons (PEPs) in the UK?

Justices of the UK Supreme Court Signup and view all the answers

What is the purpose of verifying an individual's identity in a client relationship?

To determine the client's risk category Signup and view all the answers

Which document is NOT considered as a valid form of identification for face-to-face clients?

National identity card (non UK nationals) Signup and view all the answers

Which legislation sets out the amendments to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs)?

Fifth Money Laundering Directive Signup and view all the answers

Which financial institutions have a responsibility to assist the authorities in the prevention of money laundering?

Mortgage, General Insurance, and Investment Intermediaries Signup and view all the answers

Which act consolidated, updated, and reformed the law to include any dealing in criminal property worldwide?

Proceeds of Crime Act 2002 (POCA) Signup and view all the answers

Which specific obligations to combat terrorist financing were set out in the legislation?

Terrorism Act 2000 Signup and view all the answers

Which government agency maintains the UK Consolidated Financial Sanctions List?

HM Treasury (HMT) Signup and view all the answers

What is the aim of the placement stage in money laundering?

To convert illicit funds into legitimate assets Signup and view all the answers

What is the maximum punishment for a 'tipping-off' offence?

Five years imprisonment and/or a fine Signup and view all the answers

Who is responsible for making contact with the National Crime Agency (NCA) after reporting suspicions of money laundering?

The Money Laundering Reporting Officer (MLRO) Signup and view all the answers

Which of the following individuals would be considered as politically exposed persons (PEPs) in the UK?

Directors of international public organizations headquartered in the UK Signup and view all the answers

Which document is NOT considered as a valid form of identification for face-to-face clients?

Utility bills printed from the internet Signup and view all the answers

When should identity verification take place for a client?

All of the above Signup and view all the answers

Who is responsible for making contact with the National Crime Agency (NCA) after reporting suspicions of money laundering?

The MLRO/NO Signup and view all the answers

Which of the following activities are not covered by the Money Laundering Regulations or the provisions of SYSC in the need to appoint a MLRO?

Banking institutions Signup and view all the answers

What is the main objective of the layering stage in money laundering?

To confuse the audit trail by passing the money through many transactions Signup and view all the answers

What is the maximum punishment for an offense of 'tipping-off'?

5 years imprisonment Signup and view all the answers

What is considered an offense under the Criminal Justice Act 1993?

All of the above Signup and view all the answers

Which of the following information must be included in the report?

Client's place of birth Signup and view all the answers

What should be done after reporting a suspicion of money laundering?

Keep the suspicion to oneself Signup and view all the answers

Which of the following situations may give rise to suspicion of money laundering?

A client's request to settle fees by credit card Signup and view all the answers

What does the money laundering regulations cover?

Tax evasion Signup and view all the answers

Which of the following situations may require the application of Enhanced Due Diligence (EDD) under the new regulations?

In respect of a business relationship or occasional transaction with a Non-Politically Exposed Person (Non-PEP) Signup and view all the answers

What should be done if a suspicion of money laundering arises out of a simple misunderstanding of the circumstances?

The suspicion should be reported to the MLRO/NO Signup and view all the answers

When should a suspicion of money laundering be reported to the MLRO/NO?

All suspicions must be reported to the MLRO/NO Signup and view all the answers

What is the purpose of verifying an individual's identity in a client relationship?

To prevent the client from engaging in money laundering activities Signup and view all the answers

Which of the following may be a red flag for money laundering?

Submitting multiple mortgage applications with common references Signup and view all the answers

What happens after reporting suspicions of money laundering?

Contact is made with the National Crime Agency by the MLRO/NO Signup and view all the answers

When should a suspicion of money laundering be reported to the MLRO/NO?

Immediately Signup and view all the answers

What should firms do after making a disclosure to the NCA?

Submit further disclosure to the NCA Signup and view all the answers

Which government agency should be contacted after reporting suspicions of money laundering?

National Crime Agency (NCA) Signup and view all the answers

What is the purpose of the Money Laundering Reporting Officer (MLRO)?

To report suspicions of money laundering Signup and view all the answers

Anti Money Laundering

Questions and Answers

Which regulations were repealed by the UK Money Laundering Regulations 2007?

What legislation consolidated, updated, and reformed the law to include any dealing in criminal property worldwide?

Which act set out specific obligations to combat terrorist financing?

Which of the following is a potential red flag for money laundering?

Who is responsible for making contact with the National Crime Agency (NCA) after reporting suspicions of money laundering?

What should firms do after making a disclosure to the NCA?

Which government agency maintains the UK Consolidated Financial Sanctions List?

What is the maximum punishment for 'failure to report'?

Who is considered a Politically Exposed Person (PEP)?

When does the obligation to apply Enhanced Due Diligence measures for PEPs cease?

Which situations require the application of EDD under the new regulations?

When should a suspicion of money laundering be reported to the MLRO/NO?

What is the aim of the placement stage in money laundering?

What is the maximum punishment for a 'tipping-off' offence?

What is the consequence of failing to report knowledge or suspicion of money laundering?

Which of the following situations may give rise to suspicion of money laundering?

What should be done if a client states a difference between actual income and reported income?

Who are considered as politically exposed persons (PEPs) in the UK?

What is the purpose of verifying an individual's identity in a client relationship?

Which document is NOT considered as a valid form of identification for face-to-face clients?

Which legislation sets out the amendments to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs)?

Which financial institutions have a responsibility to assist the authorities in the prevention of money laundering?

Which act consolidated, updated, and reformed the law to include any dealing in criminal property worldwide?

Which specific obligations to combat terrorist financing were set out in the legislation?

Which government agency maintains the UK Consolidated Financial Sanctions List?

What is the aim of the placement stage in money laundering?

What is the maximum punishment for a 'tipping-off' offence?

Who is responsible for making contact with the National Crime Agency (NCA) after reporting suspicions of money laundering?

Which of the following individuals would be considered as politically exposed persons (PEPs) in the UK?

Which document is NOT considered as a valid form of identification for face-to-face clients?

When should identity verification take place for a client?

Who is responsible for making contact with the National Crime Agency (NCA) after reporting suspicions of money laundering?

Which of the following activities are not covered by the Money Laundering Regulations or the provisions of SYSC in the need to appoint a MLRO?

What is the main objective of the layering stage in money laundering?

What is the maximum punishment for an offense of 'tipping-off'?

What is considered an offense under the Criminal Justice Act 1993?

Which of the following information must be included in the report?

What should be done after reporting a suspicion of money laundering?

Which of the following situations may give rise to suspicion of money laundering?

What does the money laundering regulations cover?

Which of the following situations may require the application of Enhanced Due Diligence (EDD) under the new regulations?

What should be done if a suspicion of money laundering arises out of a simple misunderstanding of the circumstances?

When should a suspicion of money laundering be reported to the MLRO/NO?

What is the purpose of verifying an individual's identity in a client relationship?

Which of the following may be a red flag for money laundering?

What happens after reporting suspicions of money laundering?

When should a suspicion of money laundering be reported to the MLRO/NO?

What should firms do after making a disclosure to the NCA?

Which government agency should be contacted after reporting suspicions of money laundering?

What is the purpose of the Money Laundering Reporting Officer (MLRO)?

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