Which two statements in the Wolfsberg Group’s “Suppression of the Financing of Terrorism” define the role financial institutions should play in the fight against terrorism? (Choose two.)

1. A. Financial institutions need to assist competent authorities in fighting terrorist financing through prevention, detection and information sharing.
2. B. Financial institutions need to continuously analyze the types of activity related to terrorist financing and develop models that in the long term will drive down terrorism.
3. C. Financial institutions should have financial intelligence units dedicated to the investigation of activity that would lead to the detection of terrorist financing as a means to decrease global terrorism.
4. D. Financial institutions should apply extra due diligence whenever they see suspicious or irregular activities, especially when customers are engaged in sectors or activities that have been identified by competent authorities as being usedfor the financing of terrorism.

Correct Answer: AD

What are two requirements of United States financial institutions when conducting business with an international institution as a result of the USA PATRIOT Act? (Choose two.)

1. A. Performing enhanced due diligence on shell banks
2. B. Performing due diligence on correspondent accounts
3. C. Visiting the head office of the international financial institution
4. D. Complying with Special Measures issued under the USA PATRIOT Act

Correct Answer: AD

A client is a wholesale auto business that operates as a used car lot. The client regularly ships vehicles internationally. In a four-month period, the client received wires totaling $ 1,250,000 from a dealer in Benin in West Africa. All wires originated from Benin and were in increments of $50,000.
Account debits made to the account were payable to various transport companies. All incoming checks reference various vehicles purchased. Dock shipping receipts produced by the client to support account activity identify the vehicles but cannot easily be tied to the wires receives.
What is the suspicious behavior?

1. A. The dock shipping receipts match the vehicles
2. B. Vehicles are regularly shipped internationally
3. C. Wires received are in large, even dollar amounts
4. D. Account debits are payable to transport companies

Correct Answer: C

In which two ways does a government Financial Intelligence Unit interact with public and private sectors? (Choose two.)

1. A. It governs the methods of investigation used by competent authorities
2. B. It mediates disputes between financial institutions and investigative authorities
3. C. It receives and analyzes disclosures filed by financial and non-bank institutions
4. D. It disseminates information and the results of its analysis to competent authorities

Correct Answer: CD

An organization’s automated surveillance system identifies large fluctuations in customer activity. As a result of an audit, the compliance officer is informed that the system is not generating alerts when activity is consistently abnormal over a long period of time. Currently the organization is evaluating new alert scenarios in an attempt to address this problem.
Which type of scenario is helpful in mitigating this weakness?

1. A. Peer
2. B. Income
3. C. Mapping
4. D. Below-the-line

Correct Answer: C