Cafp 1 Actual Questions And Answers 2023 With Complete Solution

Awareness of the conduct at issue, including the following: {Ans: • Actual knowledge • Reason to know • Management involvement.}What option describes what makes pouch activity MOST vulnerable to money laundering? {Ans: They enable money launderers to structure using monetary instruments.}What two options describe a bank's role in trade finance? {Ans: Helping in the collection process, discontinuing drafts and acceptances and offering fee-based services.}Which option identifies the two international organizations that run the Stolen Asset Recovery (StAR) Initiative? {Ans: The World Bank and the United Nations Office on Drug and Crime (UNODC).}Which person is included in the definition of customer under CIP? {Ans: A person who opens an account for another person who lacks the capacity to do so.}TBML- Trade based money laundering: {Ans: The process by which criminals use legitimate trade to disguise their criminal proceeds from their unscrupulous sources. E.g. moving illicit goods, falsifying documents, misrepresenting financial transactions, and under-or over invoicing the value of goods.}Under Section 313 of the USA PATRIOT Act, codified at 31 CFR 1010.630, a bank is prohibited from establishing, maintaining, administering, or managing a correspondent account in the U.S. for, or on behalf of, a foreign shell