QUESTION 101
Which Trust parties should be identified to determine the true nature of the Trust relationship according to Basel guidelines? (Choose three.)

QUESTION 102
What are two legal risks of having inadequate privacy policies and procedures? (Choose two.)

QUESTION 103
A company service provider in Country A sets up a corporate structure for a client from Country B, which is known for corruption. The corporate structure includes a holding company in Country A with a bank account in one of the international banks located there.
During on-boarding, the client’s wealth was estimated at $7 million. Shortly thereafter, the client’s father became president of Country
B. During a routine client review two years later, it was identified that client’s wealth had grown to $510 million.
What are two red flags that indicate money laundering or financial terrorism? (Choose two.)

QUESTION 104
A bank account is established for a new business customer. The business was established five years ago with an address in another state. The business website contains few details other than stating it is a real estate business.
One principal has an international telephone number and appears to be living in another country. The other principal works out of a recreational vehicle.
What warrants enhanced due diligence in this scenario?

QUESTION 105
Which situation is the highest risk for money laundering and terrorist financing activity?

QUESTION 106
An institution receives a request for credit from a local company that has been a client for many years. The information provided by the company indicates that its assets have increased substantially with the addition of several new subsidiaries. Further research performed by the institution indicates the new subsidiaries are recently created shell companies.
Could this indicate potential money laundering?

QUESTION 107
Which private banking situation requires due diligence actions to be implemented according to the AML principles of the Wolfsberg group?

QUESTION 108
What is the primary action a financial institution should take before formulating its anti-money laundering program?

QUESTION 109
Which red flag should a compliance officer prioritize first for investigation?

QUESTION 110
A bank maintains a number of United States (U.S.) dollar correspondent accounts for foreign financial institutions. Upon a routine review of a U.S. dollar correspondent account owned by Foreign Bank A, a number of transactions appear to have been originated by Foreign Bank B outside the expected activity for this account. These transactions appear suspicious and a suspicious transaction report was filed by the compliance officer.
Which step should the compliance officer take?

QUESTION 111
An existing customer at a bank has recently expanded its services to provide check cashing for its customers.
Which factor indicates the bank should terminate this relationship?

QUESTION 112
When creating an anti-money laundering program for a foreign bank with branches in the U.S., which three are included among the four minimum elements required under the USA Bank Secrecy Act? Choose 3 answers

QUESTION 113
The purpose of an anti-money laundering program should be to do what?

QUESTION 114
A foreign politically exposed person (PEP) requests to add a beneficiary to a life insurance policy.
How should the request be processed to mitigate risk?

QUESTION 115
You have several AI applications that use an Azure Kubernetes Service (AKS) cluster. The cluster supports a maximum of 32 nodes.
You discover that occasionally and unpredictably, the application requires more than 32 nodes.
You need to recommend a solution to handle the unpredictable application load.
Which scaling method should you recommend?

QUESTION 116
A bank in an offshore jurisdiction approaches an institution about opening a new correspondent banking relationship. Prior to opening the account, the new account representative obtains copies of the offshore bank’s anti-money laundering policies and procedures, and all appropriate legal documentation for the bank; ascertains no third parties will be able to access the accounts; and determines the owners of the bank, the bank’s primary business activities, and the business address of the bank. Which of the following steps does the Basel Committee on Banking Supervision’s Customer Due Diligence for Banks Paper recommend the banker take prior to opening Oils correspondent account?

QUESTION 117
In which type of banking transaction is price manipulation, as a form of money laundering, a common practice?

QUESTION 118
What are the European Union Directives on Money Laundering?

QUESTION 119
To guard against acquisition or control of a financial institution by money launderers or their associates, what should supervisory agencies require?

QUESTION 120
After review of the financial institution’s enterprise-wide anti-money laundering risk assessment, the new compliance officer identifies several deficiencies that need attention.
Which deficiency could lead to the highest potential for unmitigated risk?