CySEC AMLCO Mock 2

On of the below is not a Suspicious customer identification circumstances

Agent, attorney or financial advisor acts as intermediary for the customer without proper documentation, such as a power of attorney.
Customer uses a number of offshore accounts
Customer experiences high turnover of professionals.
Investor opens several accounts for online trading and deposits large amounts of money in all but activity is very low.

Customer discusses your record-keeping or reporting requirements with the apparent intention of avoiding them is a

Suspicious Customer Behavior
Suspicious transactions/activities
Suspicious customer identification circumstances
Suspicious investment activity

The Suspicious transaction evaluation report is

written by the informer (employee who reports the Suspicious trnasaction)
Compliance Officer
Director (s)
BOD

Obliged Entities shal

pay particular attention to any threat or risk of ML or TF that may result from products or transactions that may favor anonymity
take measures, if necessary, to prevent their use for such actions
apply as far as possible, reasonable measures and procedures to address the risks arising from technological developments and new financial products.
All the above

Where the Obliged Entity relies on a third party, applies the following measures / procedures

maintains a consolidated file for every third party where it stores all the relevant information
performs customer identification and due diligence measures to the third party prior to the establishment of the business relationship or the carrying out of an occasional transaction
Does need to sign an agreement with the third party in which the obligations of each party are specified
None of the above

When investigating unusual or suspicious transactions from the employees who have been appointed for that purpose,

The client should be informed
Mokas should be informed
It is noted that the results of the investigations are recorded in a separate memo and kept in the file of the customer concerned.
CySEC Should be infomred

Which one of these is a material change in a legal status of a company

change of Directors/Secretary
change of Registered Office
change of corporate name and/or trading name
All the above

Verifying the identity of the customer and the beneficial owner after the establishment of the business relationship is part of

Simplified Due Diligence
Normal Due Dilligence
Enhanced Due Dilligence
None of the above

Monitoring transactions on an ongoing basis, including, where necessary, reviewing each transaction as it occurs, to detect unusual or suspicious activity. This may include measures to determine whether any of the following are out of line with the business risk profile (Select multiple answers)

transfers (of cash, investments or other assets)
the use of wire transfers
significant changes in activity;
All the other answers

The source of funds or wealth can be verified, by reference to

an original or certified copy of a recent pay slip
by phone speaking to the person concerned
by email
non of the above

One of the below is not part of the differences between terrorist financing and money laundering

Origin of funds not necessarily illegal in TF
Usually small amounts are needed in TF
Not done to gain profit in TF
sometimes large Terrorist organizations would need large funding

An employee of company ABC reported to his manager a transaction which he believed was suspicious. His manager, although he received the report, took no further action. In the eyes of the law which of the below might have committed an offence

The employee because he should have reported the transaction to the compliance officer instead of his manager
The employee and the manager, because the report did not reach the compliance officer
The manager because he did not act on the report
No one, as an internal report has been done by the employee to manager

MOKAS members are appointed for a period of at least

1 year
2 years
3 years
4 years

A credit insitution has infringed the law with regards to taking measures to comply with the AML laws. CySEC has the power to impose a fine of

1000 euros a day until the infringement is corrected
2000 euros a day until the infringement is correct
3000 euros a day until the infringement is correct
None of the above as credit institutions do not fall under CySEC powers in relation to supervision of of Money Laundering

The launderer buys a policy with illicit money and then backs out of the policy requesting a cancellation of the policy and refund of the money, after paying a penalty is called

Placement
Layering
Structuring
Integration

Converting deposited cash into monetary instruments is part of

Placement
Structuring or Layering
Integration
None of the above

The integration phase is the _____ step in ML

First
Last
second
mid

According to the NRA report, Cyprus is exposed to a ______ ML threat

High
Medium – High
Medium
Low

Fund managers offering their services amongst others to high net worth individuals with a relatively small size when compared to traditional investment firms were found as posing

Medium
Low
high
Medium-Low

Life and non-life insurance activity, represents a smaller portion and the risks associated with ML are considered

High
Medium
Low
Medium High

Electronic money services ML threat is considered ______ in Cyprus

High
Medium
Low
Medium- high

Failure to comply with the AML/CFT Law or the directive issued by the Supervisory Authority, will subject Credit Institutions to the following measures taken against them:

An administrative fine of not exceeding EUR 5.000.000
An administrative fine of not exceeding EUR 1.000.000
An administrative fine of not exceeding EUR 500.000
An administrative fine of not exceeding EUR 350.000

A ‘tipping-off’ offense upon conviction is subject is subject to

imprisonment not exceeding 1 year or to a fine not exceeding €50.000 and/or to both these sentences.
imprisonment not exceeding 2 years or to a fine not exceeding €50.000 and/or to both these sentences.
imprisonment not exceeding 3 years or to a fine not exceeding 200.000 and/or to both these sentences.
imprisonment not exceeding two (2) years or to a fine not exceeding fifty thousand (€100.000) and/or to both these sentences.

In case of a client providing forged documentation he can be subject to

imprisonment not exceeding 4 years or to a pecuniary penalty of up to €200.000 or to both of these penalties.
imprisonment not exceeding 1 years or to a pecuniary penalty of up to €200.000 or to both of these penalties.
imprisonment not exceeding 1 years or to a pecuniary penalty of up to €100.000 or to both of these penalties.
imprisonment not exceeding 2 years or to a pecuniary penalty of up to €100.000 or to both of these penalties.

Mr Marko, a director of a company, violated the provisions of implementation of UN sanctions, as a result he got, most probably,

a prison term not exceeding two (2) years or a fine not
exceeding one hundred thousand euro (€ 100,000) or both
a prison term not exceeding One (1) year or a fine not
exceeding one hundred fifty thousand euro (€ 150,000) or both
a prison term not exceeding Two (2) year or a fine not
exceeding one hundred fifty thousand euro (€ 150,000) or both
a prison term not exceeding Two (2) year or a fine not
exceeding Two hundred thousand euro (€ 200,000) or both

Who appoints the AMLCO officer

BOD
Senior Management
HR
the 4 eyes

ML training for new employees should be done

After commencing work
before commencing work
no need if the employee had training at another firm
on annual basis

The RBA approach involves specific measure(s) such as

Documenting
Managing and Mitigating the assessed risk
Continuous monitoring and improvements
All the above

While assessing risk, a company can rely on the following except

Customers from countries which inadequately apply Financial Action Task Force’s (FATF),
FATF
the International Money Laundering Information Network (IMOLIN)
the International Monetary Fund (IMF)
Internet Searches, forums, blogs

The Obliged Entity should assess and measure the level of risk based on the following primary risk factor indicators, except

Customer risk factors
Countries and geographical areas risk factors
Product, services and transaction risk factors
Market and foreign exchange risk

When assessing risk associated with countries and geographical areas, companies need to consider

the jurisdictions to which the customer and beneficial owner have relevant personal
links
the jurisdictions in which the customer and beneficial owner are based;
the jurisdictions that are the customer’s and beneficial owner’s main places of business;
All the above

The weight given to each risk factor is likely to vary depending on the product and on the customer. When weighting risk factors, the Obliged Entity must ensure, among others, that:

weighting is not disproportionately influenced by just one factor;
economic or profit considerations do not influence the risk rating;
weighting does not lead to a situation where it is impossible for any business relationship
to be classified as high risk;
All the above

Reviewing media reports that are relevant to the sectors or jurisdictions in which the Obliged Entity operates/has customers is necessary to

Identify potentially new risks
Part of due dilligence
necessary to comply with regulations only
necessary to monitor existing risks

Obliged entities need to keep all records of all transactions and documents for a period of

five years and destroy all documents after that period
five years
7 years
7 years and destroy all documents after that period

CDD should be performed for gaming services when

when they make transactions amounting to or exceeding two
thousand euros (€ 2,000)
when they make transactions amounting to or exceeding one thousand euros
when they make transactions amounting to or exceeding 15000 euros
none of the above

In accordance with Article 62 of the AML/CFT Law the verification of the identity of the customer and the beneficial owner, shall take place ___ the establishment of a business relationship or the carrying out of the transaction.

during
before
after
none of the above

EDD measures are

Additional to CDD mesaures
Replacement of CDD measures
are done before CDD measures
are done after CDD measures

Where Obliged Entities have branches or majority-owned subsidiaries located in third countries where the minimum AML/CFT requirements are less strict than those of the Member State, they shall ensure that their branches and majority-owned subsidiaries located in the third country implement the measures, procedures and requirements of

the Third country
Member State
both third country and member state
members state to the extent that the third country law allows

Customer is irresponsive to calls or avoids contact is a kind of

Suspicious Customer Behavior
Suspicious transactions/activities
Suspicious customer identification circumstances
Suspicious investment activity

Customer deposits large numbers of consecutively numbered money orders is an example of

Suspicious non-cash deposits
Suspicious wire transfer transactions
Suspicious Cash Transactions
Suspicious Customer Trading Activity

CySEC AMLCO Mock 2

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