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Under which two circumstances may law enforcement be given access to a financial institution customer’s financial records? (Choose two.)

1. A. If the person is named in a suspicious transaction report
2. B. If law enforcement serves a legal summons or subpoena
3. C. If the investigation of a customer is made public in the media
4. D. If law enforcement has circumstantial evidence to suspect money laundering

Correct Answer: BD

An immigrant residing in the United States opens a bank account that includes a debit card. Several months later, the transactional monitoring system identifies small deposits into the account followed by corresponding ATM withdrawals from a country bordering a conflict zone.
How should the bank respond?

1. A. Block any further activity
2. B. File a suspicious transaction report
3. C. Initiate an investigation into the activity
4. D. Contact the customer if the transaction activity continues

Correct Answer: C

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

What does the Financial Action Task Force 40 Recommendations address on transparency of beneficial ownership?

1. A. Gatekeepers
2. B. Correspondent banking
3. C. Payable through accounts
4. D. Legal persons and arrangements

Correct Answer: D

What should countries do to help prevent non-profit organizations from being abused for the financing of terrorism according to the Financial Action Task Force 40 Recommendations?

1. A. Allow for freezing assets of non-profit organizations
2. B. Require all non-profit organizations to register with the country’s financial intelligence unit
3. C. Ensure non-profit organizations cannot be used to conceal or obscure the diversion of funds intended for legitimate purposes to terrorists’ organizations
4. D. Create laws that forbid non-profit organizations from completing cross-border transactions without first running them through known terrorist data bases

Correct Answer: C