Money Laundering Methods

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What do criminals often do with criminally derived funds in electronic form?

Withdraw them in cash and transport to another country (correct)
Transfer them to a legitimate business account
Use them to purchase goods and services online
Convert them to virtual currencies

What is the final stage of the money laundering process?

Layering
Placement
Integration (correct)
Concealment

What is the purpose of sham transactions in money laundering?

To conceal the source of the funds
To make illegal transactions appear legitimate (correct)
To evade taxes
To transfer funds to an offshore account

What is an example of a reintegration method in money laundering?

Making a loan agreement (D) Signup and view all the answers

What is the purpose of layering in money laundering?

To break the audit trail (D) Signup and view all the answers

What is the primary focus of the Office of Foreign Assets Control (OFAC) of the US Department of the Treasury?

Enforcing economic and trade sanctions (A) Signup and view all the answers

Which of the following groups is NOT directly targeted by US economic and trade sanctions?

Non-US firms operating only within their own countries (A) Signup and view all the answers

What is the ultimate goal of money laundering?

To reintegrate criminally derived property into the legitimate economy (C) Signup and view all the answers

Why do US prosecutors claim jurisdiction over offences related to financial transactions?

Because the transactions cleared in the US (C) Signup and view all the answers

Who is required to observe US sanctions?

Anyone located in the US, as well as all US persons (D) Signup and view all the answers

What is the significance of the US dollar currency in relation to OFAC regulations?

It automatically engages OFAC regulations (C) Signup and view all the answers

What is the purpose of the Kingpin Sanctions Regulations?

To target international narcotics traffickers (D) Signup and view all the answers

What is the primary purpose of employing a rule matching capability in screening systems?

To discount false hits where possible (C) Signup and view all the answers

What is essential for investigating potential matches to sanctions lists?

Documented escalation processes (B) Signup and view all the answers

Why are service-level agreements necessary for investigating potential matches?

To ensure that all procedures are conducted by one area or function on behalf of another (B) Signup and view all the answers

What should be prioritized for investigation?

Higher-risk potential matches (C) Signup and view all the answers

What should be in place to manage delays in investigating potential matches?

Processes and procedures to manage delays (A) Signup and view all the answers

Why may some instances require additional time for investigation?

When communication takes longer than usual with a customer (C) Signup and view all the answers

What is the main purpose of the list published by OFAC?

To identify individuals and entities whose assets are subject to being blocked (D) Signup and view all the answers

What is the abbreviation for specially designated nationals?

SDN (B) Signup and view all the answers

What is the name of the federal law enacted in 2017 that imposed sanctions on several countries?

Countering America's Adversaries Through Sanctions Act (D) Signup and view all the answers

What is the consequence of not abiding by the sanctions restrictions?

Monetary fines and potential imprisonment (A) Signup and view all the answers

Which company was fined $963 million for apparent violations of U.S. sanctions?

BNP Paribas SA (A) Signup and view all the answers

What is the purpose of OFAC's sanctions regime?

To advance US foreign policy interests (B) Signup and view all the answers

What was the reason for the United Nations Security Council to impose new sanctions on North Korea in September 2017?

For carrying out its sixth and largest nuclear test (D) Signup and view all the answers

What is one of the six major goals of the United Nations Security Council's resolution on North Korea?

To cap North Korea's oil imports (A) Signup and view all the answers

What was the outcome of the North Korea–United States Singapore Summit in June 2018?

A joint statement on the de-nuclearisation of the Korean Peninsula (A) Signup and view all the answers

Who were the leaders that participated in the North Korea–United States Singapore Summit in June 2018?

Kim Jong-un and Donald Trump (B) Signup and view all the answers

What is NOT a goal of the United Nations Security Council's resolution on North Korea?

To increase overseas labourer contracts (B) Signup and view all the answers

What was the significance of the North Korea–United States Singapore Summit in June 2018?

It was the first-ever meeting between leaders of North Korea and the US (A) Signup and view all the answers