AML and terrorist financing training materials—post-training assessment answers—law firms
AML and terrorist financing training materials—post-training assessment answers—law firms

The following Practice Compliance precedent provides comprehensive and up to date legal information covering:

  • AML and terrorist financing training materials—post-training assessment answers—law firms

The law and red flags

Circle the correct answer.

QuestionMultiple choice answers
1. What is money laundering?(a) The process through which proceeds of crime and their true origin and ownership are changed so that the proceeds appear legitimate
2. What is terrorist financing?(b) Providing/collecting funds from legitimate or illegitimate sources for terrorist acts
3. What are red flags?(a) Warning signs of money laundering and terrorist financing
4. What would put you on notice in relation to a client?(b) An obstructive or secretive client
5. What is not a red flag in relation to the instructions?(b) Retainers where at least one party is outside the UK
6. What would not be a cause for concern in relation to money?(b) A short delay in funds clearing from a client’s bank account
7. How do you need to act when looking out for red flags and other signs of money laundering and terrorist financing?(c) Like a reasonable person (with the same qualifications, knowledge and experience as you)
8. Failure to disclose can result in what penalty?(c) Five years’ imprisonment, a fine or both
9. What can be a defence to the offence of failure to disclose?(c) Making a SAR to the nominated officer
10. Which Act establishes a number of money laundering offences?(a) Proceeds of Crime Act 2002 (POCA 2002)
11. What offence would you be committing if you disclose that you have,

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