Pre - Assessment

This assessment will test your understanding of anti-money laundering and terrorism financing.

You will be presented with a set of questions, you cannot get feedback when you answer a question, but you have the option of changing your initial answer. At the end, you will be asked to submit all your answers.

Take as long as you need, as this assessment is not timed.

Question 1 - stages of money laundering

Select the correct description.

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

placement

layering

integration

Question 2 - stages of money laundering

Select the correct description.

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

placement

layering

integration

Question 3 - stages of money laundering

Select the correct description.

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

placement

layering

integration

Question 4 - money laundering

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 - money laundering

Identify the risks banks face when their institution is used for money laundering.

loss of reputation

legal risk

loss of customers

operational risk

all of the above

Question 6 - money laundering

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 - money laundering

Select the correct statement.

To fight money laundering effectively, a business must have in place a process for reporting significant cash transactions.

To fight money laundering effectively, a business must know its customers and monitor their transactions and have a process for reporting significant cash and suspicious transactions.

To fight money laundering effectively, a business must have a process for reporting significant cash and suspicious transactions.

Question 8 - know your customer

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

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

(b) review type of account (business, fiduciary, etc.)

(c) review country of origin

(d) (a) and (c ) above

(e) (a), (b) and (c ) above

Question 9 - cash dealers

Indicate whether the following statement is true or false.

Cash dealers are required to submit reports to the Australian Transaction Reports and Analysis Centre (AUSTRAC) only if they have a reasonable basis for suspecting that a financial transaction may involve money laundering.

True

False

Question 10 - AUSTRAC's role

What is the scope of AUSTRAC's responsibilities under the Financial Transaction Reports Act 1988?

AUSTRAC monitors compliance by cash dealers with anti-money laundering (AML) legislation and supports enforcement agencies in the fight against money laundering.

AUSTRAC monitors and directly enforces AML compliance by banks and insurance companies.

AUSTRAC monitors and directly enforces AML compliance by all businesses defined as cash dealers.

Question 11 - cash dealers

Select the single correct response.

Which is the best description of a cash dealer under the Financial Transaction Reports Act 1988 (FTR Act)?

A bank or insurance company.

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

A bank, insurance company or other financial institution designated by AUSTRAC as a cash dealer.

Question 12 - reporting

Select the single correct response.

What is a significant cash transaction?

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

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

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

Question 13 - terrorism financing

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 - terrorism financing

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 - reporting

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 - know your customer

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

True

False

Question 17 - FTR Act

The FTR Act is currently being phased out by the AML/CTF Act which will be implemented over two years.

True

False

Question 18 - money laundering

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

True

False

Question 19 - AUSTRAC's role

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 - AML/CTF Act

Select the single correct response.

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

identification and verification

managing relationships with reporting entities

compliance watch-dog program

information sharing with government agencies

Very Good! You have gone through all the questions.

At this stage, you still have the option of changing any of the answers you entered.

After you are satisfied with all your answers, click the Submit button.

YOUR SCORE CARD

Score Card

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