Convert the money into multiple money products such as money orders or prepaid products (such as gift cards and prepaid debit cards) C. Structuring transactions D. A risk range can be a simple rating of Low, Medium and High. This approach reduces the risks of being red flagged by AML/CFT systems and controls. This presents less risk toML/FT. Convert the money into multiple money products B. A person recruited to transact with illegally obtained money, A gang member transporting laundered cash, Replacing incriminating words with code names, Outsourcing the depositing of illegal monies to multiple people. When the risk assessment includes the inherent risk and measures the strength of controls, this results in a finding of the residual risk. Denial is a common tactic that substitutes deliberate ignorance for thoughtful planning. Anti-money laundering initiatives around the world have led to collaborative efforts between law enforcement, regulatory bodies, trade associations and private businesses. These clients should therefore receive enhanced ongoing due diligence. Anti-Money Laundering (AML) Chapter Exam Instructions. Published 17 December 2020 From: LexisNexis and the Knowledge Burst logo are registered trademarks of RELX Inc. Other products and services may be trademarks or registered trademarks of their respective companies. Money laundering facilitates a broad range of serious underlying criminal offenses and ultimately threatens the integrity of the financial system. to combat money laundering (ML) and terrorist financing (TF). Â. A money laundering risk assessment is an analytical process applied to a business to measure the likelihood or probability that the business will unwittingly engage in … The money laundering risk assessment, undertaken in 2017 is Bermuda’s second risk assessment of money laundering, and was a follow-up to the national money laundering risk assessment carried out in 2013. Assessment of money laundering and terrorist financing risks in the Principality of Liechtenstein National Risk Assessment (NRA) Summary (for publication) July 2018 2 “ The first step in the risk management process is to acknowledge the reality of risk. Business StructureThe greater the number of subsidiaries or branches, the greater the level of controls required to ensure your business policy is applied consistently.AML/CFT risks: Those seeking to undertake money laundering or the financing of terrorism will target businesses with more than one branch if hey are able to identify weaknesses inAML/CFT compliance controls. Selling prepaid products and over the counter medication C. Structuring transactions D. It also means your business is more likely to be targeted by criminals.  Therefore the 'real' risk that the business presents to unwittingly facilitating money laundering or financing of terrorism. Test your knowledge with this interactive money laundering quiz. 2.2 . AML/CFT risks: Launderers attempt to hide amongst other transactions wherever viable. That was according to estimates by the International Monetary Fund (IMF) in 1998.1 Roughly how much would this translate to today?2, According to the UK Proceeds of Crime Act 2002, what is the maximum custodial sentence that can be imposed for money laundering?3, 4. For clients that operate a business, you need to understand their nature and purpose of account activity. Your business should operate with client risk profiling systems so you know which clients present the highest risk.AML/CFT risks: The ability to hide amongst other clients is a crucial factor for those seeking to undertake money laundering or the financing of terrorism. Â. A comprehensive database of more than 15 anti money laundering quizzes online, test your knowledge with anti money laundering quiz questions.Our online anti money laundering trivia quizzes can be adapted to suit your requirements for taking some of the top anti money laundering … Anti-money laundering involves all policies and pieces of legislation that force financial institutions to proactively monitor their clients in order to prevent money laundering and corruption. to combat money laundering and terrorist inancing. Registered Office is Global Reach, Dunleavy Drive, Cardiff CF11 0SN. An initial AML/CFT risk assessment will measure the inherent risk. Your business should determine if the intermediary is regulated underAML/CFT laws.AML/CFT risks: The use of a professional provides a veneer of legitimacy to criminal activity and a buffer between criminals and their financial activities and assets. 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