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Question 1

Select the correct description.

The stage of money laundering at which illicit money first enters the financial system is called:

a) placement

b) layering

c) integration

Question 2

Select the correct description.

The stage of money laundering at which illicit money becomes indistinguishable from legitimate funds and can be reinvested is called:

a) placement

b) layering

c) integration

Question 3

Select the correct description.

The stage of money laundering at which money is dispersed and disguised is called:

a) placement

b) layering

c) integration

Question 4

Indicate whether the following statement is True or False.

Money laundering only refers to the laundering of illegal funds and not illegal assets.

True

False

Question 5

Identify the risks reporting entities face when their business is used for money laundering.

a) loss of reputation

b) legal risk

c) loss of customers

d) operational risk

e) all of the above

Question 6

Indicate whether the following statement is True or False.

Criminals almost always launder money solely through banks and other financial institutions. Therefore anti-money laundering compliance is not a serious issue for other types of businesses.

True

False

Question 7

Select the correct statement.

a) To fight money laundering effectively a business must have in place a process for reporting threshold transactions.

b) To fight money laundering effectively a business must know its customers and monitor their transactions and have a process for reporting threshold transactions and suspicious matters.

c) To fight money laundering effectively a business must have a process for reporting threshold transactions and suspicious matters.

Question 8

Which of the following are appropriate ways to assess the inherent ML/TF risks that a relationship with a customer may present?

a) review type of customer (individual, company, trust, etc.)

b) reviewing the type of service they want to use

c) considering their ethnic or cultural background

d) all of the above

e) (a) and (b)

Question 9

Indicate whether the following statement is True or False.

Reporting entities are required to submit reports to the Australian Transaction Reports and Analysis Centre (AUSTRAC) only if they have a suspicion on reasonable grounds that a financial transaction may involve money laundering.

True

False

Question 10

Reporting entities are obliged to provide which of the following to AUSTRAC?

a) Information concerning travellers who bring or take over AUD10,000 in to or out of Australia

b) Reports showing they have complied with their regulatory obligations in relation to anti-money laundering and counter-terrorism financing

c) All reports designated under the Financial Transaction Reports Act 1988

Question 11

Select the single correct response.

Which is the best description of a reporting entity under the Anti-Money Laundering and Counter-Terrorism Act 2006 (AML/CTF Act)?

a) A bank or insurance company.

b) A wide range of businesses and institutions (specified in the FTR Act) which deal in cash, bullion and financial transactions.

c) A bank, insurance company or other financial institution designated by AUSTRAC as a reporting entitiy.

Question 12

Select the single correct response.

What is a threshold transaction?

a) A cash transaction or wire transfer involving the transfer of $10,000 or more.

b) A cash transaction involving the transfer of $20,000 or more.

c) A cash or e-currency transaction involving the transfer of $10,000 or more.

Question 13

Indicate whether the following statement is True or False.

Terrorist organisations can obtain money to source their activities from legitimate organisations such as charities and religious groups.

True

False

Question 14

Indicate whether the following statement is True or False.

Australia does not have a plan to detect terrorism activities or financing.

True

False

Question 15

Indicate whether the following statement is True or False.

When departing from or arriving in Australia you only need to report amounts of $10,000 or more in cash.

True

False

Question 16

Under the AML/CTF Act reporting entities only need to identify and verify new customers.

True

False

Question 17

The first tranche of the AML/CTF Act was fully implemented on 12 December 2008 and the majority of 'cash dealers' who were captured under the FTR Act are now 'reporting entities' under the AML/CTF Act.

True

False

Question 18

Money launderers are generally criminals trying to hide money from the drug trade.

True

False

Question 19

One of AUSTRAC's responsibilities under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 is to act as an information and analysis conduit between the financial and gambling sectors and law enforcement, revenue collection and national security agencies.

True

False

Question 20

Select the single correct response.

What is a key requirement of the AML/CTF Act?

a) The identification and verification of customer identities.

b) To manage relationships with reporting entities.

c) To establish AUSTRAC's compliance watch-dog program.

d) Sharing information with government agencies.

Question 21

Indicate whether the following statement is True or False.

From 1 November 2011 reporting entities wishing to provide a remittance service must register with AUSTRAC within 28 days of commencing that service.

True

False

Question 22

Indicate whether the following statement is True or False.

AUSTRAC monitors compliance Anti-Money Laundering and Counter-Terrorism Financing Act 2006 but does not have enforcement powers to address non-compliance with the Act. However incidents of non compliance will be referred to the appropriate law enforcement or Australian Government Regulator e.g. ASIC?

a) False

b) True

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