During a sanctions compliance audit, it is discovered that ABC Company, a corporate client of a financial institution, has subsidiaries operating in countries subject to comprehensive sanctions. What is the financial institution's obligation regarding its business relationship with ABC Company?

• A. Immediately terminate all business relationships with ABC Company and its subsidiaries.
• B. Continue business relationships with ABC Company while monitoring transactions involving its subsidiaries.
• C. Conduct enhanced due diligence on ABC Company and its subsidiaries to assess sanctions risk.
• D. Seek approval from senior management before taking any action regarding the business relationship.

You are a law enforcement agent investigating an associate of Country X's former prime minister who is suspected of helping high-level government officials facilitate a scheme to misappropriate hundreds of millions of dollars in public funds. During your investigations, you uncovered a network of legal entities that you believe have been used to transfer and conceal the proceeds of this corruption scheme.
Through public record searches requests to law enforcement in other jurisdictions and subpoenas to financial institutions you have outlined the following arrangement.
* The associate contacted a relationship manager at a small private bank based in Country X to open a private bank account
* The associate's attorney created an offshore investment company Tropico, Ltd that holds the private banking account
* The associates attorney then appointed three shelf companies formed in Panama as Tropico's directors
* A fourth shelf company formed in the Cayman Islands was named as the primary shareholder You are now trying to determine the true owners behind the funds and assets concealed through this corporate structure Wh.ch is the MOST effect.ve next steptoidentify these individuals?

• A. Obtain articles of incorporation for the three shelf companies formed in Panama and listed as Tropics directors
• B. Obtain articles of incorporation for the shelf company formed in the Cayman Islands that was listed as primary shareholder
• C. Obtain transaction records from the private bank to determine who transferred funds into the account after it was established
• D. Obtain a subpoena that requires the relationship manager to provide testimony on the ownership structure of the legal entities

A fraud consultant has been engaged to review and determine whether (here has been any fraudulent activity at a large manufacturing company. The consultant utilizes Benlords Law to analyze the disbursements (payments) over the past two years.
Which should prompt the consultant to investigate further?

• A. The frequency of the leading number of the payment amount being "5" was greater than the leading number being "8"
• B. The frequency of Ihe leading number of the payment amount being "9" was greater than the leading number being "2"
• C. The frequency of the leading number of Ihe payment amount being "1" was greater than the leading number being "4"
• D. The frequency of the leading number of the payment amount being "4" was greater than the leading number being "7"

According to the FATF 2012 recommendations which should countries do to ensure compliance around money remittance businesses?

• A. Require compliance measures to be implemented once a Suspicious Activity or Transaction Report (SAR or STR) has been died
• B. Ensure proper identification and registration of persons operating money remittance businesses
• C. Prohibit money remittance businesses to be operated as a sole proprietorship
• D. Provide a list of all money remittance businesses to the Egmont Group

You are an examiner with Ihe regulatory agency in your jurisdiction that oversees money services businesses (MSBs).
You are conducting an examination of a midsize MSB with agents located domestically and in several countries. A previous examination last year found numerous weaknesses in Ihe MSB s anti-money laundering and fraud prevention programs, and you are reviewing these programs to determine if improvements have been made.
Which activity would MOST likely lead your agency to lake further regulatory action against the MSB?

• A. The MSB's suspicious activity/transaction report (SAR/STR) filings related to cybercrime have increased in the past year
• B. The MSB has suspended agents found to be facilitating fraud schemes and allowed them to rejoin as a new company
• C. The MSB is not applying FATCA's withholding tax to its domestic money transactions
• D. The MSB has not updated the AML training it provides to its agents in almost four months