Joseph's insurance business was booming primarily due to one client

and this client's referrals. All were in the import$/$export trade, and a number

of million$-$dollar life insurance policies were purchased with premiums

paid by wire transfers from around the world. Joseph noticed much

activity on the policies in the form of frequent withdrawals and surrenders,

and distributions were made to off$-$shore bank accounts. He shrugged off

any suggestion of illegal activity since he was not actually aware of such.

Which of the following is a correct statement when Joseph is found to

have facilitated a money laundering scheme?

a$.$ A plea of ignorance will be a successful defense.

b$.$ No fines or penalties will apply since Joseph was not a principal

participant in the scheme.

c$.$ Joseph can continue to work as a financial services professional.

d$.$ Closing his eyes to the facts will not be a valid defense.

What is the USA PATRIOT Act based primarily on$?$

a$.$ the Civil Rights Act of $1964$

b$.$ the Bank Secrecy Act of $1970$

c$.$ the Fair Credit Reporting Act of $1972$

d$.$ the American Jobs Creation Act of $2004$

What are the three stages of the money laundering process?

a$.$ placement, layering, and integration

b$.$ acquisition, deposit, and disbursement

c$.$ earning, covering, and titling

d$.$ placement, titling, and formalizing

The "Know Your Customer" rule in the USA PATRIOT Act requires that

financial institutions, including insurance companies, do all of the

following EXCEPT: