Question 1

A bank holds accounts for several different gatekeeper clients such as attorneys accountants and company formation agents II is conducting a periodic review of these accounts and updating their risk ratings. Which two accounts should the bank consider to be at highest risk? Choose 2 answers

Options :

A :

A company formation agent that establishes private investment companies primarily for clients in Africa and Asia

B :

An attorney whose practice specializes in cases involving maritime law in the international shipping industry

C :

An accountant at a private accounting firm whose clients are large multinational agricultural corporations

D :

A notary in Latin America who specializes in assisting clients from other countries with high-end real estate transactions

Answer: A,D

Question 2

Your client is the family of a man who is deceased. The family remembers stones that their father (the deceased) had a Cayman Islands company where he held his investments. They have located a file containing an old Cayman Islands bank statement in the name of Company A Limited and in care of a post office address. They want to know what information they can find out about the company and the account. How can they determine if the company still exists?

Options :

A : Conduct an internet search for the company's name as company information is public

B : Visit the post office and ask for access to the PO Box

C : Check with the Corporate Registry as this information is public

D : Contact the bank and ask the status of the company

Answer: C

Question 3

Your construction company wishes to hire Mr. X to provide consultancy services within his country. He has his own consulting firm and is also a board member of a state-owned bank Mr. X is known for having highlevel business connections and for charging exorbitant rales for his services Mr. X does not like to complete paperwork and prefers to work based on a verbal agreement. Which three facts are red flags requiring enhanced due diligence? Choose 3 answers

Options :

A : Mr. X may be considered to be a politically exposed person (PEP)

B : The price Mr. X charges is suspect if fees are not itemized and documented

C : As a board member of a stale-owned bank Mr. X may be considered a public official under the U.S. Foreign Corrupt Practices Act

D : The price Mr. X charges is suspect since he is in the business of helping companies obtain and retain business

Answer: A,B,C

Question 4

You work for a bank that is subject to U.S. sanctions overseen by the Office of Foreign Assets Control (OFAC). In the past your institution has had difficulty keeping the Specially Designated Nationals (SDN) lists up-to-date. Which is the recommended course of action when dealing with transactions from a sanctioned country through your bank?

Options :

A : Call Ihe OFAC to submit the blocking and reject reports

B : Ignore the SDN lists because they appear to be out-of-date again

C : Open the account and then contact the OFAC about blocking transactions

D : Submit blocking and reject reports to the OFAC in writing

Answer: D

Question 5

John purchased a property live years ago Real estate records show that two years ago, John transferred his interest to a third parley Susan. Susan obtained a mortgage on the properly with a mortgage company Company Z. John maintains the properly and pays the mortgage and taxes John only lives there on the weekends John also rents a room to someone who lives at the property full time. You are the investigator tasked with identifying the property's beneficial owner Who is the beneficial owner?

Options :

A : John

B : Company Z

C : Susan

D : Renter

Answer: A

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