QUESTIONS AND CORRECT ANSWERS

AML Exam (CE) LATEST UPDATE 2024

QUESTIONS AND CORRECT ANSWERS

• The information an insurance agent must collect for customer identification purposes

depends on

• the amount of money the customer is worth.
• The amount of money the customer spends.
• whether the insurance product the customer is purchasing at a low or high risk for

money laundering.

d. the size and resources of the insurance company. - CORRECT ANSWER: c.

Whether the insurance product under consideration is at a low or high risk for money laundering

• When Tom Jensin mixes illicit and legal funds and then uses the money to purchase

a new car, he is practicing.

• rebating
• diversification
• integration

d. smurfing - CORRECT ANSWER: c. integration

• When a client gives an insurance agent $14,000 in cash for an insurance

transaction, the agent is obligated to

• consult with a lawyer
• file a CTR
• call the police

d. do nothing - CORRECT ANSWER: b. file a CTR

• Federal staff have surveyed the ABC insurance company and determined that it is in

compliance with the USA PATRIOT act of 2001 because it has all of the following Except.

• a customer identification and verification program
• a suspicious activity monitoring and reporting system
• a fire safety committee

d. an employee training program. - CORRECT ANSWER: d. an employee training

program

• What has Marcela Benson done when she transfer the benefit of her insurance

policy to an apparently unrelated third party?

• performed an unlawful transfer
• performed a transfer by fault
• performed a secondary transfer

d. raised a red flag for suspicious activity - CORRECT ANSWER: d.

• Tony demarco successfully laundered $75,000 of drug money, In doing so, he went

through each of the following processes EXCEPT

• placement
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