1 A MONEY LAUNDERING
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What is money laundering?
Money laundering is the process of disguising the proceeds of crime to make them appear as legitimate funds, typically involving placement, layering, and integration stages.
What is the Egmont Group and what is its role in AML?
A global network of Financial Intelligence Units sharing intelligence to combat money laundering.
What are the three classic stages of money laundering?
The three stages are placement (introducing illegal cash into the financial system), layering (concealing the trail through complex transactions), and integration (reintroducing funds as apparently legitimate).
What is 'layering' through foreign exchange in money laundering?
Converting illicit funds into foreign currency to obscure their origin across jurisdictions.
What does the term 'predicate offence' mean in the context of money laundering?
A predicate offence is the underlying criminal activity that generates illicit proceeds which are then laundered, such as drug trafficking, fraud, or corruption.
What is a 'Politically Exposed Person' (PEP) in the context of AML?
An individual holding or having held a prominent public function, posing higher corruption risk.
Which international body sets global standards for combating money laundering?
The Financial Action Task Force (FATF) is the global standard-setting body that issues recommendations to combat money laundering, terrorist financing, and proliferation financing.
What is 'Simplified Due Diligence' (SDD) and when is it applied?
Reduced CDD measures applied to low-risk customers identified by risk-based approach.
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