A publicly traded corporation set up a shell company in an offshore jurisdiction for the purpose of making payments to government officials to win business The corporation funnels the proceeds through a London bank with a robust compliance program Once the scheme becomes public which is LEAST likely to occur?

• A. The bank will be held liable for laundering Ihe proceeds of corruption
• B. The corporation will be subject to sanctions by the offshore jurisdiction
• C. The corporation will suffer damage to its reputation and diminished share price
• D. The bank will be subject to investigation by U.K. authorities

You are a law enforcement agent who has received an anonymous tip about suspicious financial activities at Labor Way Inc. a company in your jurisdiction. Labor Way contracts with large corporations internationally to provide temporary employees, and handles payroll processing and lax withholding lor its temporary employees.
You begin an investigation into Labor Way and discover the following information:
* Labor Way's corporate bank account was opened in the name of a law firm that is acting as nominee
* Labor Way's financial records show a sharp increase in revenues and a corresponding increase in temporary employment contracts over the past two years
* Labor Way's transaction history shows periodic withdrawals of large amounts of cash that correspond with its payroll coming due
* Labor Way has recently gained a number of clients in other countries (where it is not located) including several in which it did not previously operate Based on (his information which is your MOST likely conclusion?

• A. Labor Way may be committing internal accounting fraud due to the substantial and unexplained increase in revenues
• B. Labor Way may be committing employment tax fraud because its transaction records indicate it is paying all of US temporary employees in cash
• C. Labor Way may be involved in a money laundering scheme due to the presence of a beneficial owner who is hiding behind the nominee account
• D. Labor Way may be involved m a terrorist financing scheme because it has recently entered into contracts in overseas indications to which it has no prior business connections

You are an investigator pursuing a suspected fraudster whom you believe is leading a multi-million dollar Ponzi scheme targeting the elderly in your country You believe you are close to gathering the evidence needed to recover some of the victims losses However you are missing some transaction records from a financial institution that would connect the suspect to accounts holding the proceeds of the fraud.
These records can only be released to law enforcement or government regulators. You have a friend in the local police department who is willing to contact the institution and request the records under the pretenses they are needed for an unrelated police investigation.
Given these circumstances would it be ethical for you to ask your friend to obtain the records?

• A. This action is ethical because you are acting in the best interests of your clients, the fraud victims who need this information to recover some of Their losses
• B. This action is unethical because your avenue for obtaining Ihe records was inappropriate, even if you did not directly misrepresent yourself
• C. This action is epical because the records are being turned over to a law enforcement official and you the investigator, are not directly misrepresenting yourself
• D. This action is unethical because you do not have proof that Ihe suspect has committed the fraud and are only acting on your belief

You are an investigator in a country that has a money laundering law that uses the list approach to identify the predicate offenses. There are 12 crimes on this list of predicate offenses. You are currently investigating a public official for suspected money laundering, and the source of the official's illegal income is not yet known You have just discovered a hidden bank account owned by the official in which $5 million has been transacted in the past year.
Which is Ihe MOST important in order to prove money laundering?

• A. Establish the layering phase of the transactions
• B. Trace the source of the deposit into the bank account
• C. Analyze the disbursements from the bank account to prove Ihe integration phase
• D. Identify all cash transactions within the account

During a sanctions compliance training session, an employee asks about the consequences of facilitating transactions involving individuals or entities on a sanctions list. What is the most accurate response to the employee's inquiry?

• A. Facilitating transactions involving sanctioned individuals or entities is permissible if the transactions are conducted in foreign currency.
• B. Facilitating transactions involving sanctioned individuals or entities may result in civil penalties but not criminal charges.
• C. Facilitating transactions involving sanctioned individuals or entities is permissible if authorized by senior management.
• D. Facilitating transactions involving sanctioned individuals or entities may result in both civil and criminal penalties.