CAMS Question #196: Real Exam Question with Answer & Explanation

The correct answer is A. It does not conduct business at a fixed address in a jurisdiction in which it is authorized to conduct B. It does not employ one or more individuals at its fixed address where it is authorized to conduct D. It is not subject to inspection by the banking authority that licensed it to conduct banking activities. According to the Wolfsberg Financial Crime Principles for Correspondent Banking, a shell bank is defined as a bank that has no physical presence in the jurisdiction in which it is incorporated and licensed, and which is unaffiliated with a regulated financial group that is subjec

Question

Which three criteria does a shell bank meet according to the Wolfsberg Principles on Correspondent Banking? Choose 3 answers.

Options

AIt does not conduct business at a fixed address in a jurisdiction in which it is authorized to conduct
BIt does not employ one or more individuals at its fixed address where it is authorized to conduct
CIt is not subject to AML laws that require it to implement an AML program
DIt is not subject to inspection by the banking authority that licensed it to conduct banking activities

Explanation

According to the Wolfsberg Financial Crime Principles for Correspondent Banking, a shell bank is defined as a bank that has no physical presence in the jurisdiction in which it is incorporated and licensed, and which is unaffiliated with a regulated financial group that is subject to effective consolidated supervision. Physical presence means meaningful mind and management located within a country. The existence simply of a local agent or low level staff does not constitute physical presence.

Community Discussion

No community discussion yet for this question.

Full CAMS Practice