IPA IP 2022 Question 29
A question IPA Japan published in 令和4年度 ITパスポート試験 公開問題 問29, translated into English. ITPEC is based on the same exams.
Which of the following is the most appropriate description concerning countermeasures against money laundering?
Explanation
Confirming the purpose and the customer's identity when an account is opened, and monitoring transactions whose funds have a suspicious source — the core of anti-money laundering (AML).
Money laundering disguises funds obtained from crime as legitimate by passing them through accounts and transactions. Financial institutions counter it by knowing their customer (verifying identity and the purpose of transactions at account opening), by monitoring transactions continuously, and by reporting suspicious ones to the authorities. In Japan these duties are set by the Act on Prevention of Transfer of Criminal Proceeds.
Answer (a)
Why not others:
- •(b) — special printing and holograms prevent counterfeiting of banknotes, not the laundering of illegal funds
- •(c) — taxing a foreign subsidiary's profits as if paid to the parent is an anti-tax-haven rule (controlled foreign company taxation) against tax avoidance
- •(d) — combining products with different characteristics to limit loss from one event is diversification of an investment portfolio
Key rule: Anti-money laundering = know your customer (identity and purpose) + monitor transactions + report suspicious ones.
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This question comes from the past questions IPA Japan publishes, translated into English by ITPEC Practice. ITPEC Practice is an independent study tool and is not affiliated with IPA or ITPEC. See the original paper (PDF) or Report an issue.