29 Questions
What was the amount of the fine imposed on Westpac for money laundering violations?
$1.3 billion AUSTRAC
Which financial institution was fined $2.9 billion for its involvement in the Malaysian 1MDB scandal?
Goldman Sachs
What was the amount of the fine imposed on Insignia by Malta's Financial Intelligence Analysis Unit?
€373,670
What was notable about the Goldman Sachs case?
Both the institution and executives were fined
What type of clients did Insignia cater to?
High-net-worth and ultra-high-net-worth individuals
What is a trend seen in recent actions against firms?
Increased action against individuals in firms
What is the primary objective of imposing sanctions on nations?
To implement nation states' foreign policy objectives
Which country has extensive sanctions imposed against it by the US?
Cuba
What is a significant compliance requirement for firms today?
Preventing sanctions breaches and combating the financing of terrorism
What is the result of sanctions breaches according to the text?
Large fines are imposed on firms
What has brought the threat of terrorism to the forefront of domestic and international agendas?
Recent political developments and unrest
Why do firms need to ensure their compliance programmes remain effective?
Due to the rapid pace of change in the implementation of sanctions regimes
What was the fine imposed on John Stumpf, the former CEO of Wells Fargo, for his role in the scandal?
$17.5 million
How much has Wells Fargo been fined since the scandal was first reported in 2016?
Over $3 billion
What was the fine imposed on the Dutch bank ING in a major money laundering case?
€775 million
What type of criminal activity is a serious threat to financial services businesses?
Terrorist financing
What is the main focus of AML efforts?
Identifying the proceeds of different forms of underlying criminal conduct
What is a key difference between money laundering and terrorist financing?
The type of criminal activity
What is the primary objective of money laundering?
To conceal the source of illegally obtained funds
What is the limitation of the 'three-stage' model of money laundering?
It is overly simplistic
What is the primary difference between money laundering and terrorist financing?
The type of crime involved
What is the purpose of screening systems in firms?
To protect themselves from dealing with sanctioned individuals, entities, and countries
What is the consequence of failing to take AML and CFT seriously?
Legal and reputational risks
What is the role of international bodies in sanctions?
To impose sanctions on individuals, entities, and countries
What is a common myth about money laundering?
It is a set process with distinct stages.
What is the benefit from Mr. Jones' crime in the example?
The amount he saved by avoiding the loss.
What happens to the proceeds of Mr. Jones' premature sale of stock?
They are remitted to his bank account where they earn interest.
Why is placement irrelevant in some crimes?
Because the benefits are already within the financial system.
What is a characteristic of money laundering in some cases?
It can be difficult to distinguish between stages.
Learn about the limitations of the three-stage model of money laundering, which assumes that all crime generates cash. Discover how financial crimes and frauds result in benefits within the financial system, making placement irrelevant.
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