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Terrorist Financing

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E-learning

Exercise on Typologies, Detection, Indicators and Compliance

For each scenario, indicate the detection principle you would be using:
1. Client says, “How does your company’s internal audit process work?"
  
  Know Your Customer
  
  Monitor Your Customer
  
  Know Your Transaction
  
  Know Your Process
2. Client says, “First I need to deposit this check into account XXXX, and then I would like to transfer the amount to account YYYY but only if account XXXX received $500 by this date. Then, I would like $1000 to be transferred back to account XXXX from account YYYY."
  
  Know Your Customer
  
  Monitor Your Customer
  
  Know Your Transaction
  
  Know Your Process
3. Client says, “I don’t have a driver’s license and I don’t have any other ID with me that I can show you.”
  
  Know Your Customer
  
  Monitor Your Customer
  
  Know Your Transaction
  
  Know Your Process
4. Client wants to purchase a life insurance policy using a large amount of cash. Agent thinks, “This person normally buys small policies on a regular payment structure. This request is for a substantial policy with a large lump sum of money.”
  
  Know Your Customer
  
  Monitor Your Customer
  
  Know Your Transaction
  
  Know Your Process
5. Client goes into a foreign exchange business and says, “I would like to wire $9,500 to Country X.” You recognize that Country X is a country of concern.
  
  Know Your Customer
  
  Monitor Your Customer
  
  Know Your Transaction
  
  Know Your Process
6. Client says, “Please send any correspondence to my business address. I don’t want mail going to my home.”
  
  Know Your Customer
  
  Monitor Your Customer
  
  Know Your Transaction
  
  Know Your Process
How many special recommendations on terrorist financing has the FATF developed?

8

9

10

11
Which of the following is NOT a goal of the FATF special recommendations?

List terrorist financing as a criminal offense in each country’s legislation

Initiate measures to minimize tax evasion

Put internal controls in place that enable authorities to freeze funds or other assets and seize or confiscate property used by terrorists

Encourage international co-operation through treaties that allow for the legal exchange of assistance and information with respect to terrorists and terrorist activities

Report suspicious transactions to national authorities
Which of the following scenarios would you identify as suspicious? (Select 2 choices)

Large sums of money are regularly transferred to a couple of accounts in another country by members of a registered charity. The transactions appear in keeping with the humanitarian relief projects conducted by the organization.

Within a month, a client sends several money transfers just under the reporting requirement of $10,000 to two individuals at the same location in a country of concern.

Funds are generated by a business in Germany that is owned by a citizen of Sweden.

An individual reportedly earns $35,000 a year but had a turnover of $350,000 in his account.

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FINTRAC

Terrorist Financing

Terrorist Financing

E-learning

Exercise on Typologies, Detection, Indicators and Compliance