A compliance officer provides an overview of the bank’s anti-money laundering program to a group of new tellers during employee orientation. Which training element should be delivered to this audience?

1. A. Results of recent risk assessments
2. B. Large cash transaction reporting procedures
3. C. The financial institution’s surprise cash audit policy
4. D. Past check fraud losses incurred by the financial institution

Correct Answer: B

What are two requirements with respect to supporting documentation that is used to identify potentially suspicious activity, according to Financial Action Task Force? (Choose two.)

1. A. It must be retained for at least five years
2. B. It must be retained for at least seven years
3. C. It must be kept in a manner so that it can be provided promptly
4. D. It must only be released to the government through a subpoena process

Correct Answer: AC

What are two requirements for monitoring and reporting suspicious activity for correspondent banking according to the Wolfsberg Principles? (Choose two.)

1. A. Incorporate suspicious activity monitoring into periodic reviews
2. B. Incorporate due diligence results such as customer risk ratings
3. C. Utilize downstream correspondents to investigate and report suspicious activity
4. D. Investigate and report suspicious activity only for the correspondent bank’s clients

Correct Answer: BC

Which red flag indicates high potential for money laundering in a real estate purchase?

1. A. The purchaser is a nominee
2. B. The purchaser had a previous bankruptcy
3. C. The purchaser owns a cash intensive business
4. D. The purchaser is not a resident where the property is located

Correct Answer: C

Findings from a regulatory examination report states that the job descriptions of personnel outside of the compliance department do not include references to anti-money laundering responsibilities. Which action should the firm take?

1. A. Update all job descriptions to include anti-money laundering responsibilities
2. B. Respond that only compliance personnel have anti-money laundering responsibilities
3. C. Send an email to all staff stating that personnel must observe the anti-money laundering policy
4. D. Reply that a description of anti-money laundering responsibilities is included in the annual training

Correct Answer: D