MODULE 2 TEST ASSESSMENT

An Assessment Test of 20 multiple choice questions that are based on the learning objectives of the Anti-Money Laundering & the Countering of Terrorist Financing (AML/CFT) course Module 2. The passing grade is 60%. The Test can be taken up to three times. Failure results in an additional AML/CFT Training session with the Compliance Unit.

Assessment Questions

Place the stages of Money Laundering in the correct order:

  • Stage 1
    Placement
  • Stage 2
    Layering
  • Stage 3
    Integration

Which of the following is the purpose of the FATF?

  • To monitor trade on a Global scale.
  • To monitor the creation of new currency in Europe.
  • To develop policies that combat money laundering & terrorist financing on a Global scale.
  • To monitor financial crimes in Asia.

Which statements about Terrorist Financing are True?

  • Funding can only come from an illegitimate source.
  • It is used to finance illicit activities.
  • Funding can come from both legitimate & illegitimate sources
  • It has an ideological purpose.

Which of the following is not Tipping Off?

  • Communicating to the Compliance Officer a suspicious activity you observe.
  • Discussing with your colleague that you have observed suspicious activity on a customer's account.
  • Telling a customer that a report was made to the FIU about their transaction.
  • Telling a customer that the FIU has requested information on their account.

How long are customer records to be retained by Massy United?

  • 6 years.
  • 6 years after the relationship has ended.
  • 7 years.
  • 5 years after the relationship has ended.

The 40 Recommendations recognized as the international standards for AML/CFT was developed by:

  • Financial Action Task Force
  • Financial Acting Test Force
  • Final Aging Task Force
  • Financial Laundering Task Force

An Internal Suspicious Reporting Form must be submitted to the CO/ACO within:

  • 3 days from the date of the suspicious transaction.
  • 5 days from the date of the suspicious transaction.
  • 10 days from the date of the suspicious transaction.
  • 14 days from the date of the suspicious transaction.

If you see a suspicious Activity in Massy United, you should:

  • Say nothing and hope that it will go away.
  • Contact the FIU.
  • Inform the Compliance Officer/ Alternate Compliance Officer immediately.
  • Contact the Central Bank.

Which of the following statement(s) is NOT a Red Flag

  • Customers who purchase insurance using a credit card.
  • Customers who are reluctant to provide identification information when purchasing Massy United insurance.
  • Customers who failed to give their correct name when purchasing a policy.
  • Customers who use their passport as their identification verification.

A Suspicious Activity Report is completed and submitted to the FIU by:

  • The Compliance Officer.
  • The General Manager.
  • The Customer.
  • The Underwriting Supervisor

Which entity is an AML/CFT regulator for Massy United?

  • Central Bank of Trinidad & Tobago
  • Financial Obligations Regulations
  • Ministry of Finance
  • Securities & Exchange Commission

The stage where illicit funds first enter the financial system is called:

  • Layering
  • Placement
  • Entering
  • Integration

Which of the following statements are TRUE?

  • The identity of the Compliance Officer & Alternate Compliance Officer must never be shared with individuals outside of Massy United.
  • The Compliance Policies and Procedures are found in Massy United's Compliance Programme.
  • Massy United staff should always tip off customers when a suspicious transaction occurs.
  • Only the Compliance Officer & the Alternate Compliance Officer are required to adhere to the AML/CFT Laws.

What is the term used for breaking up large sums of money into smaller quantities to make deposits undetected?

  • Smurfing
  • Kiting
  • Layering
  • Shifting

If you fail to report a suspicious activity, Massy United can be fined or penalized.

  • True
  • False

A Source of Fund Form is never required for wire transfers.

  • True
  • False

Match the type of Customer Due diligence with the level of risk:

  • High Risk
    Enhanced Due Diligence
  • Medium Risk
    Standard Due Diligence
  • Low Risk
    Simplified Due Diligence

A Source of Funds Declaration Form must be completed for which of the following transaction(s):

  • Massy Technologies fire insurance policy, where premiums amounted to TT$100,000.
  • A direct customer who pays his TT$16,000 motor premiums in cash.
  • Johnson's Inc. premium payments of TT$60,000 and TT$70,000 for Fire and Money policies.
  • Mr. Jones who wired premium payment of TT$7,000 for his Homeowner's policy.

Connect the Customer Due Diligence to their related verification methods:

  • True Name
    National Identification Card
  • Permanent Residence/ Proof of Address
    Utility Bill
  • Occupational Income/ Proof of Income
    Job Letter

Mr. Tom a first time customer, purchases a Massy United policy for TT$30,000. The premiums are paid using LINX. Mr. Tom is also the son of the Prime Minister of Barbados. What CDD/KYC documents must he submit before completing this transaction:

  • Fully completed KYC Form
  • Fully completed PEP Form
  • Proof of Income
  • Proof of Address
  • SOFD Form
  • PEP Form
  • Customer Finger Prints