Question

1. What stage of the money-laundering process is occurring if the money launderer is depositing checks at multiple banks for amounts just below regulatory reporting thresholds?

2. What stage of the money-laundering process is occurring if the money launderer is creating complex layers of financial transactions designed to disguise the audit trail and provide anonymity.

3. In the context of money laundering, what does the acronym “PEP” stand for?

4. From the list below, what is the best example of a PEP? (there will be multiple choice options to select from)

5. According to the survey, what is the top method on how financial institutions identify PEPs?

6. In the context of money laundering, what does the acronym “KYC” stand for?

Answer 1

1. What stage of the money-laundering process is occurring if the money launderer is depositing checks at multiple banks for amounts just below regulatory reporting thresholds?

The stage of money laundering is 'Integration Stage'. Here the money launderer is trying to receive the money in a way that it does not invite attention and appears to be obtained from legitimate source.

2. What stage of the money-laundering process is occurring if the money launderer is creating complex layers of financial transactions designed to disguise the audit trail and provide anonymity?

The stage of money laundering is 'Layering Stage'. Here the money launderer is trying to separate the illegal income from its source by creating complex layers of financial transactions. The main motive is to hide audit trail and provide anonymity.

3. In the context of money laundering, what does the acronym “PEP” stand for?

PEP stands for Politically Exposed Person

4. According to the survey, what is the top method on how financial institutions identify PEPs?

• Use of commercial lists
• Using information provided by the customer
• Information obtained from news search

5. In the context of money laundering, what does the acronym “KYC” stand for?

KYC stands for Know Your Customer

Note: The question ''From the list below, what is the best example of a PEP? (there will be multiple choice options to select from)'' has been skipped as multiple choices have not been provided in the question.