IPA IP 2023 Question 30
A question IPA Japan published in 令和5年度 ITパスポート試験 公開問題 問30, translated into English. ITPEC is based on the same exams.
Same question on ITPEC: Apr 2024 Q92
Which of the following is the most appropriate term to express the initiatives that are implemented by a financial institution or other such institution in order to prevent acts where funds obtained illegally are disguised as being obtained by legitimate means?
Explanation
Anti-money laundering (AML) — the measures a financial institution takes so that illegally obtained funds cannot be passed off as legitimate.
Money laundering hides the criminal origin of funds by moving them through accounts, transfers and businesses until they look like lawful income. AML measures include verifying the identity of customers when accounts are opened (know your customer, KYC), monitoring transactions for unusual patterns, keeping records and reporting suspicious transactions to the authorities, as the law requires of financial institutions.
Answer (a)
Why not others:
- •(b) Insider trading regulations — prohibit trading in a company's securities using important information that has not been made public; they concern unfair trading, not disguising where funds came from
- •(c) Skimming — a crime that copies the magnetic stripe data of a credit or cash card with a reading device to make a counterfeit card
- •(d) Phishing — a fraud that lures people to a fake website with e-mail posing as a bank or shop and steals IDs, passwords or card numbers
Key rule: AML is a countermeasure against disguising criminal money; skimming and phishing are ways of stealing it, so they are attacks, not initiatives.
Legal Affairs · AI-written, may contain errors
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.