A United States (U.S.) bank was recently alerted by law enforcement of an increase in sale of large denomination U.S. bank notes to casas de cambio. They suspect that a Mexican syndicate is operating a money laundering scheme in the bank’s jurisdiction.
Which two steps should be taken to trace funds through the bank to assist law enforcement in their investigation? (Choose two.)

1. A. Identify the money laundering scheme and submit a suspicious transaction report
2. B. Identify if there is a decrease in the sale of large denomination U.
3. C. bank notes to casas de cambio by the bank
4. D. Identify deposits by casas de cambio that include third-party items including sequentially numbered monetary instruments
5. E. Identify multiple wire transfers initiated by casas de cambio to jurisdictions outside of Mexico that bear no apparent business relationship with that casa de cambio

Correct Answer: CD

Which two channels can be utilized during a cross-border money laundering investigation to assist in gathering information according to Financial Action Task Force? (Choose two.)

1. A. Contacting existing liaison officers in the foreign jurisdiction
2. B. Exchanging information between national law enforcement agencies
3. C. Contacting the potential suspect or their family members to request information
4. D. Submitting only formal requests for information to a financial intelligence unit

Correct Answer: AB

What is a major economic consequence of money laundering through the use of front companies?

1. A. Placing more emphasis on manufacturing
2. B. Weakening of the legitimate private sector
3. C. Creating a more competitive pricing environment
4. D. Aligning management principles between criminal enterprises and legitimate businesses

Correct Answer: B

A customer has held an account at a bank and has lived locally for over 25 years. Historically he has come into the bank monthly to deposit a $1,500 retirement check from the company where he worked. He is well known at the bank and often brings the staff cookies. Over the past four months, he has come into the bank every Monday, Wednesday, and Thursday to make $3,000 cash deposits into his account. A review of his account shows that an $8,500 check made out to cash clears his account each week. The bank has decided to file a suspicious transaction report (STR).
What is the important fact to include in the STR?

1. A. The recent change in the timing of deposits and withdrawals in the account
2. B. The customer’s work history and the amount of his monthly retirement check
3. C. The fact that the account holder is well known to the bank staff
4. D. The fact that the customer has lived in the area and has banked at this bank for 25 years

Correct Answer: B

A financial institution receives a regulatory enforcement action because of deficiencies in its anti-money laundering program. Which action should the board of directors take?

1. A. Terminate the compliance officer and staff
2. B. Purchase and install a new suspicious activity monitoring system
3. C. Hire an attorney with instructions to protest the enforcement action
4. D. Instruct the compliance officer to develop a plan to remediate the institution’s anti-money laundering program

Correct Answer: D