ITPEC IP April 2024 Question 92

Source exam: ITPEC IP April 2024Topic: Legal Affairs

ITPEC IP April 2024 — Question 92 of 100

Anti-money laundering consists of controls designed to prevent illegally obtained funds from being disguised as legitimate. Financial institutions apply customer due diligence, identity verification, transaction monitoring, record keeping, sanctions screening, and reporting of suspicious activity. These measures detect and disrupt placement, layering, and integration of criminal proceeds.

Answer (a)

Why not others:
- (b) insider-trading rules address trading securities using material nonpublic information

- (c) Skimming steals payment-card or account data, often during a legitimate transaction

- (d) Phishing impersonates a trusted party to steal credentials or induce unsafe actions

Key rule: AML targets the process of concealing criminal proceeds and making them appear to come from lawful sources.

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