Money Laundering: A Global Issue

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What is the estimated amount of money laundered globally in one year?

1% of global GDP

10% of global GDP

2 to 5% of global GDP (correct)

20% of global GDP

Which of the following best describes the reason why money laundering activities are increasingly difficult to tackle by regulators?

Unwillingness of private sector to cooperate

Increasingly interconnected global payment and banking systems (correct)

Lack of funding for regulators

Lack of international cooperation

Which international agency was established at the G7 Summit in Paris in 1989 to develop global standards for anti-money laundering?

International Monetary Fund (IMF)

Financial Action Task Force (FATF) (correct)

United Nations Office on Drugs and Crime (UNODC)

Asia/Pacific Group on Money Laundering

What is the purpose of the FATF Recommendations?

Both a and b Signup and view all the answers

How many countries and territories are currently members of the FATF?

37 Signup and view all the answers

What is the role of Hong Kong in the global anti-money laundering efforts?

Hong Kong is not only a member country of FATF, but was also one of the founding members of the Asia/Pacific Group on Money Laundering Signup and view all the answers

What is the primary reason for the establishment of international agencies dedicated to anti-money laundering?

To foster international cooperation in clamping down on money laundering Signup and view all the answers

Which of the following is NOT a key characteristic of the FATF Recommendations?

Legally binding on all member countries Signup and view all the answers

What is the primary purpose of establishing regional bodies like the Asia/Pacific Group on Money Laundering?

To foster regional cooperation in clamping down on money laundering Signup and view all the answers

What is the primary reason a bank should conduct CDD on major corporate shareholders that appear in different layers of a corporate customer's shareholding structure?

To identify the beneficial owners of the corporate customer Signup and view all the answers

What is the primary reason a politically exposed person (PEP) is classified as a higher-risk customer?

PEPs are more likely to engage in corrupt activities due to their prominent public positions Signup and view all the answers

What is the primary reason a bank must conduct continuous monitoring of a customer's background and transactions after opening an account?

To identify any suspicious transactions connected to the customer Signup and view all the answers

What is the primary reason a bank must obtain senior management approval before opening an account for a PEP?

To assess the potential risks associated with the PEP's account Signup and view all the answers

What is the primary relationship between a PEP and an entity that has a close relationship with the PEP?

The entity is considered a PEP as well Signup and view all the answers

What was the most critical requirement under the Anti-Money Laundering Ordinance (AMLO) for banks?

Identifying and verifying the customer's identity Signup and view all the answers

What was a bank required to do if a beneficial owner was classified as higher risk?

Classify the customer as higher risk as well Signup and view all the answers

Under what circumstances could a bank open an account for a higher-risk customer?

If the customer was unlikely to engage in money laundering activities Signup and view all the answers

What was required for a bank to open an account for a customer with high money laundering risk?

Both B and C Signup and view all the answers

What was a bank required to do as part of the Customer Due Diligence (CDD) process?

Check the customer name against a watch list Signup and view all the answers

Money Laundering: A Global Issue

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