Free CeMAP 1 Quiz Test Unit 2 Topic 23

Unit 2 Topic 23

1 / 12

Why might money laundering regulations create ‘financial exclusion’?

Because not everyone can provide the necessary identification

Because customers want to know why they have been declined a financial product

Because certain non-residents cannot be offered banking facilities

Because financial organisations are wary of opening bank accounts with cash deposits

2 / 12

Staff training on money laundering must cover all of the following requirements EXCEPT how to:

evidence client identity.

liaise with the National Crime Agency.

report suspicious transactions.

identify potentially suspicious transactions.

3 / 12

Insurance Life plc has set up an ISA for a new client. Why was it NOT necessary for the company to obtain evidence of identity for money laundering purposes?

The client is only temporarily resident in the UK.

nvestment amounts of less than £10,000 are exempt from money laundering identification requirements

The client was introduced by an intermediary who obtained the necessary evidence

Investments into ISAs are exempt from money laundering identification requirements

4 / 12

Q
In order to be required to report a transaction to the Money Laundering Reporting Officer, a member of staff first needs to:

review the circumstances of the case with other experienced staff members

advise the person that they may be investigated

be certain that the person is involved in money laundering

have reasonable grounds for believing that a person is involved in money laundering

5 / 12

Employees should receive regular training about money laundering so that:

they can caution as appropriate any suspect individuals.

they can assess their firm’s compliance with the sourcebook.

they are aware of the consequences to themselves if they fail to comply.

they can complete the Money Laundering Report.

6 / 12

Which one of following is true in respect of a firm’s responsibilities under the money laundering regulations? A firm must:

maintain client confidentiality at all times

appoint its Money Laundering Reporting Officer at director or partner level

report suspicious circumstances

deny access to appropriate services to anybody unable to provide detailed evidence of identity

7 / 12

In relation to money laundering, how is ‘property’ defined under the European Directive 1991?

Assets held in cash within the European Union only

Assets of every kind including legal papers giving title to such assets

Physical assets with a freehold title deed only

Physical assets with a leasehold title deed only

8 / 12

Mandy, a financial adviser, has completed a report form and submitted it to her company’s Money Laundering Reporting Officer. Under what circumstances would she take this action?

Only when she believes a colleague may be supporting money laundering

When the value of the transaction exceeds €15,000

Only when she knows, for sure, that a client is involved in money laundering activity

When she knows or suspects that a client is involved in money laundering activity

9 / 12

An authorised firm’s senior management must ensure that their organisation is protected from use by money launderers by doing all of the following EXCEPT:

appointing a Money Laundering Reporting Officer.

alerting those under suspicion of money laundering.

reporting suspicious transactions.

providing regular training for staff.

10 / 12

Paul was prosecuted under the Proceeds of Crime Act 2002 and received the maximum sentence of five years and a fine. This means that he must have been convicted of which money laundering offence

Concealing

Arranging

Tipping off

Acquiring

11 / 12

What is the MAIN reason why an authorised firm’s senior management must requisition an annual report from its Money Laundering Reporting Officer?

In order to review activities and strengthen controls

So that they can be compliant with the Financial Services Act

So that they can be compliant with the Proceeds of Crime Act

In order to monitor activities and increase deficiencies

12 / 12

If a staff member of a financial services organisation were to be accused of ‘arranging’ under the Proceeds of Crime Act 2002, it could mean that they had:

personally owned the proceeds of criminal activity.

personally used the proceeds of criminal activity.

knowingly become involved in the process of converting criminal property.

unwittingly failed to report a potentially suspicious transaction.

Your score is