UK Training Test

1. Money Laundering Regulations 2017
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2. Proceeds of Crime Act 2002
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3. Fraud Act 2006
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4. Financial Services and Markets Act 2000

1. Profits from insider dealing
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2. Proceeds of fraud committed in the UK
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3. Proceeds from smuggling stolen artwork into the UK
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4. Proceeds of drug trafficking in Colombia invested in the UK
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5. Winnings from a licensed online gambling website
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6. UK income on which tax has been evaded by not declaring it to HMRC

7. All of the above

1. Paying for some artwork using the proceeds of crime
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2. Settling into trust assets purchased with the proceeds of crime
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3. Purchasing a residential property with the proceeds of crime
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4. Investing income that has been hidden away from the tax authorities into a legitimate business that provides employment opportunities for many young people

5. All of the above

1. Accepting a payment for the hire costs of a gallery, knowing or suspecting that it derived from the proceeds of crime

2. Giving advice to a customer on the ability for art to be used as a quasi-currency, knowing or suspecting that the customer is laundering money, although no handling of any funds is involved

3. Introducing a buyer to a gallery, with no knowledge or reason to suspecting or have reasonable grounds to suspect that the buyer intends to purchase some artwork using criminal proceeds

1. Assisting another person to launder the proceeds of crime

2. Reporting a sale as money laundering that in fact turns out to be legitimate

3. Being in possession of criminal property without using or profiting from it

4. Tipping off a person that they might be under investigation for money laundering

5. Failing to report a reasonable suspicion of a money laundering transaction

1. Disciplinary action

2. Two years imprisonment and/or a fine

3. Five years imprisonment and/or a fine

4. Fourteen years imprisonment and/or a fine

1. Disciplinary action by the FCA

2. Two years imprisonment and/or a fine

3. Five years imprisonment and/or a fine

4. Fourteen years imprisonment and/or a fine

1. Generate illegal funds

2. Utilise illegal funds

3. Hide the origins of their illegally generated funds

4. Avoid paying tax on illegally generated funds

1. A criminal generates proceeds of crime

2. An organisation transfers funds to an organisation that is engaged in an armed conflict overseas that is listed under a UN sanctions regime

3. An organisation collects funds that are intended to support terrorist activities

4. A terrorist receives funds to support him and his family while he lies low and waits for orders from a terrorist organisation to launch a suicide attack

1. To conceal the provision and movement of funds

2. To bypass the formal banking system

3. To conceal the nature of the funded activity

4. To cause maximum damage for the minimum amount of funds

1. Money laundering

2. Terrorist financing

3. Both of the above

4. None of the above

1. Banking

2. Insurance

3. Solicitors

4. Estate agents

5. AMPs

6. All of the above

1. The type of customer that you are dealing with

2. The customer's country of residence

3. The type of activity to be undertaken

4. Whether or not you meet the customer in person

5. The type of service you offer to the customer

6. All of the above

1. Make a suspicious activity report to the NCA

2. Freeze any further dealings with this customer

3. Notify the HMRC
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4. Perform enhanced due diligence to assess whether you wish to continue with this business relationship

1. Assessment of money laundering risks posed by the customer

2. Verify name and permanent address

3. Source of funds: Establish what bank account is intended to be used to either fund or benefit from a sale

4. Prove beyond doubt that the new customer is not a money launderer

5. Understand customer requirements and expected transactions or activities

6. Complete appropriate documentation and records

1. The origin and destination of funds

2. Profitability of the customer's business

3. Typical frequency of transactions or activities

4. Any changes to the customer's business activities

5. The typical level of activity seen through the account

1. Never acceptable to make the payment

2. Acceptable to make the payment to prevent a delay for an important customer

3. Acceptable to make the payment to overcome administrative of bureaucratic delays

4. Acceptable only if the agent provides evidence that the payment is a legitimate, documented fee, supported by a genuine invoice and available to any party using the same service

1. The EU only

2. The UN, the UK, the US and the EU

3. All the countries that they operate in

4. All the countries they operate in and the UK, UN, EU and US

1. Harsh fines for the companies involved

2. Prison sentences and fines, settlements for the companies and individuals involved

3. Both of the above

4. None of the above

1. Trade wars

2. Currency manipulation by the target countries

3. Terrorism or the financing of terrorism by the target countries

4. The suppression of human rights, democracy and rule of law by the target countries

1. TRUE

2. FALSE

1. An arm of the UN that manages the UN sanctions

2. An office of the US government that manages the US sanctions

3. A designation given to sanctioned countries and entities

1. No. because the transaction does not involve a US-based party

2. Yes, because using USD creates a US nexus regardless of whether part of the payment is made in cash

3. No, because cash payments do not pass through the US financial system

4. Yes, because artwork paid for in USD is considered US property

1. Tell them both to change their passwords - they're too easy and not to discuss them with anyone again in the future – or face disciplinary action – or worse!

2. Keep out of it, unless you have clear evidence that customer records have been compromised

3. Nothing - their passwords seem to be strong enough and a stranger wouldn't be able to guess them

1. Fraud by failing to disclose information

2. Fraud by false representation

3. Fraud by abuse of position of trust

4. Possession of articles intended for the use in fraud

1. Theft or misuse of personal data

2. Impersonation Fraud

3. Identity Theft

4. Money Laundering

1. Confidential information about a commercial contract

2. Personal details and professional opinions about an individual

3. Information that can be stored digitally

4. Any kind of information

1. General Data Protection Regulation 2018

2. The Data Protection Act 1998

3. The Electronic Communications Privacy Act 1986

4. The Data Protection Act 2018

1. Unencrypted email

2. Post

3. Via an encrypted and secure online platform with restricted user access

4. Hand delivery

1. The bank will expect the AMP to have adequate systems and controls, so the bank does not get adversely impacted by the AMP’s actions

2. As a customer of the bank, the bank will apply the same strict controls to the AMP, as the AMP does to its customers

3. The UK supervisory authority expects equivalent systems and controls

4. The Money Laundering Regulations say it must

5. All of the above