Money Laundering: Beyond the Three-Stage Model

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What was the amount of the fine imposed on Westpac for money laundering violations?

$2.1 billion AUSTRAC

$1.1 billion AUSTRAC

$900 million AUSTRAC

$1.3 billion AUSTRAC (correct)

Which financial institution was fined $2.9 billion for its involvement in the Malaysian 1MDB scandal?

Westpac

Insignia

HSBC

Goldman Sachs (correct)

What was the amount of the fine imposed on Insignia by Malta's Financial Intelligence Analysis Unit?

€373,670 (correct)

€237,000

€500,000

€100,000

What was notable about the Goldman Sachs case?

Both the institution and executives were fined (B) Signup and view all the answers

What type of clients did Insignia cater to?

High-net-worth and ultra-high-net-worth individuals (A) Signup and view all the answers

What is a trend seen in recent actions against firms?

Increased action against individuals in firms (D) Signup and view all the answers

What is the primary objective of imposing sanctions on nations?

To implement nation states' foreign policy objectives (B) Signup and view all the answers

Which country has extensive sanctions imposed against it by the US?

Cuba (C) Signup and view all the answers

What is a significant compliance requirement for firms today?

Preventing sanctions breaches and combating the financing of terrorism (A) Signup and view all the answers

What is the result of sanctions breaches according to the text?

Large fines are imposed on firms (A) Signup and view all the answers

What has brought the threat of terrorism to the forefront of domestic and international agendas?

Recent political developments and unrest (C) Signup and view all the answers

Why do firms need to ensure their compliance programmes remain effective?

Due to the rapid pace of change in the implementation of sanctions regimes (D) Signup and view all the answers

What was the fine imposed on John Stumpf, the former CEO of Wells Fargo, for his role in the scandal?

$17.5 million (C) Signup and view all the answers

How much has Wells Fargo been fined since the scandal was first reported in 2016?

Over $3 billion (D) Signup and view all the answers

What was the fine imposed on the Dutch bank ING in a major money laundering case?

€775 million (B) Signup and view all the answers

What type of criminal activity is a serious threat to financial services businesses?

Terrorist financing (B) Signup and view all the answers

What is the main focus of AML efforts?

Identifying the proceeds of different forms of underlying criminal conduct (A) Signup and view all the answers

What is a key difference between money laundering and terrorist financing?

The type of criminal activity (B) Signup and view all the answers

What is the primary objective of money laundering?

To conceal the source of illegally obtained funds (A) Signup and view all the answers

What is the limitation of the 'three-stage' model of money laundering?

It is overly simplistic (A) Signup and view all the answers

What is the primary difference between money laundering and terrorist financing?

The type of crime involved (B) Signup and view all the answers

What is the purpose of screening systems in firms?

To protect themselves from dealing with sanctioned individuals, entities, and countries (A) Signup and view all the answers

What is the consequence of failing to take AML and CFT seriously?

Legal and reputational risks (D) Signup and view all the answers

What is the role of international bodies in sanctions?

To impose sanctions on individuals, entities, and countries (C) Signup and view all the answers

What is a common myth about money laundering?

It is a set process with distinct stages. (D) Signup and view all the answers

What is the benefit from Mr. Jones' crime in the example?

The amount he saved by avoiding the loss. (B) Signup and view all the answers

What happens to the proceeds of Mr. Jones' premature sale of stock?

They are remitted to his bank account where they earn interest. (B) Signup and view all the answers

Why is placement irrelevant in some crimes?

Because the benefits are already within the financial system. (D) Signup and view all the answers

What is a characteristic of money laundering in some cases?

It can be difficult to distinguish between stages. (C) Signup and view all the answers