// IFF501 — Vocabulary, typologies and the IFF landscape
$CATEGORY: VERITAS/IFF501

::IFF501-Q1::Which of the following is NOT one of the three classical stages of money laundering? {
    ~Placement#Incorrect. The three stages are Placement, Layering, Integration. 'Fragmentation' is a distractor; the closest real term is 'structuring' or 'smurfing', a placement technique.
    =Fragmentation#The three stages are Placement, Layering, Integration. 'Fragmentation' is a distractor; the closest real term is 'structuring' or 'smurfing', a placement technique.
    ~Layering#Incorrect. The three stages are Placement, Layering, Integration. 'Fragmentation' is a distractor; the closest real term is 'structuring' or 'smurfing', a placement technique.
    ~Integration#Incorrect. The three stages are Placement, Layering, Integration. 'Fragmentation' is a distractor; the closest real term is 'structuring' or 'smurfing', a placement technique.
}

::IFF501-Q2::The FATF's core technical standard is known as the\: {
    ~50 Principles#Incorrect. FATF publishes the 40 Recommendations. Countries are evaluated for technical compliance and effectiveness against them.
    =40 Recommendations#FATF publishes the 40 Recommendations. Countries are evaluated for technical compliance and effectiveness against them.
    ~24 Directives#Incorrect. FATF publishes the 40 Recommendations. Countries are evaluated for technical compliance and effectiveness against them.
    ~10 Pillars#Incorrect. FATF publishes the 40 Recommendations. Countries are evaluated for technical compliance and effectiveness against them.
}

::IFF501-Q3::Aggressive tax planning is best distinguished from tax evasion because it\: {
    ~Is always cross-border#Incorrect. Aggressive tax planning exploits loopholes and mismatches within the letter of the law; tax evasion breaks the law. The line between them is often the enforcement battle.
    =Is technically lawful even if abusive#Aggressive tax planning exploits loopholes and mismatches within the letter of the law; tax evasion breaks the law. The line between them is often the enforcement battle.
    ~Requires cash transactions#Incorrect. Aggressive tax planning exploits loopholes and mismatches within the letter of the law; tax evasion breaks the law. The line between them is often the enforcement battle.
    ~Only affects developing countries#Incorrect. Aggressive tax planning exploits loopholes and mismatches within the letter of the law; tax evasion breaks the law. The line between them is often the enforcement battle.
}

::IFF501-Q4::A downstream bank using another bank's correspondent access, hiding the originator, is called a\: {
    =Nested correspondent relationship#This is the classic 'nested' pattern. PTAs are related and equally risky; concentration and pooled accounts are separate typologies.
    ~Concentration account#Incorrect. This is the classic 'nested' pattern. PTAs are related and equally risky; concentration and pooled accounts are separate typologies.
    ~Payable-through account (PTA)#Incorrect. This is the classic 'nested' pattern. PTAs are related and equally risky; concentration and pooled accounts are separate typologies.
    ~Pooled client account#Incorrect. This is the classic 'nested' pattern. PTAs are related and equally risky; concentration and pooled accounts are separate typologies.
}

::IFF501-Q5::UNCAC Chapter V governs\: {
    ~Criminalisation#Incorrect. Chapter V is the asset-recovery chapter; indispensable for developing countries repatriating looted wealth.
    ~Prevention#Incorrect. Chapter V is the asset-recovery chapter; indispensable for developing countries repatriating looted wealth.
    ~Technical assistance#Incorrect. Chapter V is the asset-recovery chapter; indispensable for developing countries repatriating looted wealth.
    =Asset recovery#Chapter V is the asset-recovery chapter; indispensable for developing countries repatriating looted wealth.
}

::IFF501-Q6::Which of the following is NOT one of the three constitutive elements of money laundering under the FATF definition? {
    ~A predicate offence#Incorrect. The three elements are predicate offence, proceeds, and an act of conversion/concealment. A predicate conviction is expressly NOT required under the autonomous-offence doctrine.
    ~Proceeds derived from that offence#Incorrect. The three elements are predicate offence, proceeds, and an act of conversion/concealment. A predicate conviction is expressly NOT required under the autonomous-offence doctrine.
    ~An act of conversion, transfer or concealment#Incorrect. The three elements are predicate offence, proceeds, and an act of conversion/concealment. A predicate conviction is expressly NOT required under the autonomous-offence doctrine.
    =A conviction of the predicate offender#The three elements are predicate offence, proceeds, and an act of conversion/concealment. A predicate conviction is expressly NOT required under the autonomous-offence doctrine.
}

::IFF501-Q7::The Placement–Layering–Integration model is best described as\: {
    ~A binding legal test#Incorrect. The three-stage cycle is a pedagogic mental scaffold, not a legal doctrine — but no practising investigator dispenses with it.
    =A mental scaffold for organising typologies and enforcement responses#The three-stage cycle is a pedagogic mental scaffold, not a legal doctrine — but no practising investigator dispenses with it.
    ~A FATF Recommendation#Incorrect. The three-stage cycle is a pedagogic mental scaffold, not a legal doctrine — but no practising investigator dispenses with it.
    ~A UNCAC treaty obligation#Incorrect. The three-stage cycle is a pedagogic mental scaffold, not a legal doctrine — but no practising investigator dispenses with it.
}

::IFF501-Q8::Integration is characterised by\: {
    ~Physical cash crossing a counter#Incorrect. Integration is the stage at which funds return to ordinary economic use — property, businesses, insurance, indistinguishable from legitimate wealth.
    ~Complex cross-border wire chains#Incorrect. Integration is the stage at which funds return to ordinary economic use — property, businesses, insurance, indistinguishable from legitimate wealth.
    =Assets re-entering the legitimate economy as apparently clean wealth#Integration is the stage at which funds return to ordinary economic use — property, businesses, insurance, indistinguishable from legitimate wealth.
    ~Refusal to complete a CTR#Incorrect. Integration is the stage at which funds return to ordinary economic use — property, businesses, insurance, indistinguishable from legitimate wealth.
}

::IFF501-Q9::The 'autonomous offence' doctrine allows prosecution of money laundering\: {
    ~Only after conviction of the predicate offence#Incorrect. The autonomous-offence doctrine endorsed by FATF and embodied in the Palermo/Merida Conventions permits prosecution even where the predicate is time-barred, occurred abroad, or was committed by an unknown person.
    =Even where the predicate cannot be proved to criminal standard#The autonomous-offence doctrine endorsed by FATF and embodied in the Palermo/Merida Conventions permits prosecution even where the predicate is time-barred, occurred abroad, or was committed by an unknown person.
    ~Only in the country where the predicate occurred#Incorrect. The autonomous-offence doctrine endorsed by FATF and embodied in the Palermo/Merida Conventions permits prosecution even where the predicate is time-barred, occurred abroad, or was committed by an unknown person.
    ~Only against corporate defendants#Incorrect. The autonomous-offence doctrine endorsed by FATF and embodied in the Palermo/Merida Conventions permits prosecution even where the predicate is time-barred, occurred abroad, or was committed by an unknown person.
}

::IFF501-Q10::UNCTAD's 2020 estimate of annual capital flight from Africa was approximately\: {
    ~USD 8 billion#Incorrect. USD 88.6 billion in annual capital flight from Africa, most of it via commercial IFF channels; greater than inbound official development assistance.
    =USD 88.6 billion#USD 88.6 billion in annual capital flight from Africa, most of it via commercial IFF channels; greater than inbound official development assistance.
    ~USD 300 billion#Incorrect. USD 88.6 billion in annual capital flight from Africa, most of it via commercial IFF channels; greater than inbound official development assistance.
    ~USD 1.2 trillion#Incorrect. USD 88.6 billion in annual capital flight from Africa, most of it via commercial IFF channels; greater than inbound official development assistance.
}

::IFF501-Q11::The nine FATF-Style Regional Bodies (FSRBs) exist to\: {
    ~Replace FATF at regional level#Incorrect. FSRBs (APG, CFATF, ESAAMLG, GAFILAT, etc.) conduct Mutual Evaluations of their members using FATF methodology.
    =Conduct Mutual Evaluations of their members#FSRBs (APG, CFATF, ESAAMLG, GAFILAT, etc.) conduct Mutual Evaluations of their members using FATF methodology.
    ~Levy sanctions on non-compliant states#Incorrect. FSRBs (APG, CFATF, ESAAMLG, GAFILAT, etc.) conduct Mutual Evaluations of their members using FATF methodology.
    ~Prosecute money-laundering offences#Incorrect. FSRBs (APG, CFATF, ESAAMLG, GAFILAT, etc.) conduct Mutual Evaluations of their members using FATF methodology.
}