Money Laundering: Beyond the Three-Stage Model
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Questions and Answers

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?

    <p>Both the institution and executives were fined</p> Signup and view all the answers

    What type of clients did Insignia cater to?

    <p>High-net-worth and ultra-high-net-worth individuals</p> Signup and view all the answers

    What is a trend seen in recent actions against firms?

    <p>Increased action against individuals in firms</p> Signup and view all the answers

    What is the primary objective of imposing sanctions on nations?

    <p>To implement nation states' foreign policy objectives</p> Signup and view all the answers

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

    <p>Cuba</p> Signup and view all the answers

    What is a significant compliance requirement for firms today?

    <p>Preventing sanctions breaches and combating the financing of terrorism</p> Signup and view all the answers

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

    <p>Large fines are imposed on firms</p> Signup and view all the answers

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

    <p>Recent political developments and unrest</p> Signup and view all the answers

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

    <p>Due to the rapid pace of change in the implementation of sanctions regimes</p> 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?

    <p>$17.5 million</p> Signup and view all the answers

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

    <p>Over $3 billion</p> Signup and view all the answers

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

    <p>€775 million</p> Signup and view all the answers

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

    <p>Terrorist financing</p> Signup and view all the answers

    What is the main focus of AML efforts?

    <p>Identifying the proceeds of different forms of underlying criminal conduct</p> Signup and view all the answers

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

    <p>The type of criminal activity</p> Signup and view all the answers

    What is the primary objective of money laundering?

    <p>To conceal the source of illegally obtained funds</p> Signup and view all the answers

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

    <p>It is overly simplistic</p> Signup and view all the answers

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

    <p>The type of crime involved</p> Signup and view all the answers

    What is the purpose of screening systems in firms?

    <p>To protect themselves from dealing with sanctioned individuals, entities, and countries</p> Signup and view all the answers

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

    <p>Legal and reputational risks</p> Signup and view all the answers

    What is the role of international bodies in sanctions?

    <p>To impose sanctions on individuals, entities, and countries</p> Signup and view all the answers

    What is a common myth about money laundering?

    <p>It is a set process with distinct stages.</p> Signup and view all the answers

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

    <p>The amount he saved by avoiding the loss.</p> Signup and view all the answers

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

    <p>They are remitted to his bank account where they earn interest.</p> Signup and view all the answers

    Why is placement irrelevant in some crimes?

    <p>Because the benefits are already within the financial system.</p> Signup and view all the answers

    What is a characteristic of money laundering in some cases?

    <p>It can be difficult to distinguish between stages.</p> Signup and view all the answers

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