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ACAMS Practice Questions With Correct Answers
Typology: Exams
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The /USA /PATRIOT /Act /was /passed /in: A) / 1970 B) / 1985 C) / 2001 D) / 2007 /- /correct /answer(s) / ✔✔ /C The /three /stages /of /money /laundering /are: A) /Layering, /Placement, /Refining B) /Placement, /Refining, /Integration C) /Refining. /Integration, /Layering D) /Integration, /Layering, /Placement /- /correct /answer(s) / ✔✔ /D Which /of /the /following /would /be /satisfactory /elements /of /an /Anti- Money /Laundering /Program?
/certified /employee /in /the /Investigations /Unit /writes /up /a /few /policies /and /procedures /and /posts /them /on /the /department /bulletin /board. II /- /Shortly /after /attaining /their /CAMS /certification, /the /individual /provides /AML /training /to /the /Investigations /Unit. III /- /The /CAMS /certified /individual /routinely /reviews /the /work /of /the /Investigations /Unit. IV /- /The /CAMS /certified /individual /assumes /the /responsibility /of /a /compliance /watchdog. A) /All /of /the /above /would /be /satisfactory B) /II /and /IV /would /be /satisfactory C) /I /and /III /would /be /satisfactory D) /None /of /the /above /would /be /satisfactory
In /determining /what /risks /a /customer /poses, /which /consideration /should /NOT /be /a /major /factor? A) /Where /the /customer /resides /or /where /the /business /is /headquartered. B) /What /is /the /size /of /your /financial /institution. C) /What /occupation /or /type /of /business /does /the /customer /derive /their /income /from. D) /What /are /the /customer's /ethnic /heritage, /sexual /orientation /and /political /beliefs.
The /correct /answer /would /be /"D." /The /customer's /ethnic /heritage, /sexual /orientation /and /political /beliefs /are /more /discriminatory /factors, /and /while /they /may /help /frame /the /context /of /certain /transactions, /they /should /not /be /a /major /factor /in /assessing /risk. The /size
C. /Transferring /funds /through /Payable /Through /Accounts /(PTAs). D. /Exchanging /Colombian /pesos /on /the /black /market. /- /correct /answer(s) / ✔✔ /A Which /statement /is /true? A. /Bust- out /schemes /are /popular /in /creating /large /bankruptcy /frauds /where /businesses /secure /increasing /loans /in /excess /of /the /actual /value /of /the /company /or /property /and /then /run /with /the /money, /leaving /the /lender /to /foreclose /and /take /a /substantial /loss. B. /Cuckoo /smur /ng /is /a /signi /cant /money /laundering /technique /identi /ed /by /the /Financial /Action /Task /Force, /where /a /form /of /structuring /uses /nested /accounts /with /shell /banks /in /secrecy /havens. C. /In /its / 40 /Recommendations, /the /FATF /issued /
a /list /of /"designated /categories /of /offense" /that /asserts /crimes /for /a /money /laundering /prosecution. D. /E- cash /is /not /attractive /to /the /money /launderer /because /it /cannot /be /completely /anonymous /and /does /not /allow /for /large /amounts /to /be /"transported" /quickly /and /easily. /- /correct /answer(s) / ✔✔ /A Which /three /of /the /following /is /an /indication /of /possible /money /laundering /in /an /insurance /industry /scenario? A. /Insurance /products /sold /through /intermediaries, /agents /or /brokers. B. /Single-premium /insurance /bonds, /redeemed /at /a /discount. C. /Policyholders /who /are /unconcerned /about /penalties /for /early /cancellation. D. /Policyholders /who /make /full /use /of /the /"free /look" /period. /- /correct /answer(s) / ✔✔ /BCD Which /two /activities /are /typically /associated /with /the /black /market /peso /exchange /(BMPE) /money /laundering /system? A. /Converting /illicit /drug /proceeds /from /dollars /or /Euros /to /Colombian /pesos. B. /Converting /illicit /drug /proceeds /from /Colombian /pesos /to /dollars /or /Euros. C. /Facilitating /purchases /by
/Basel /Committee /to /do /business /without /additional /supervision /to /the /degree /that /the /other /state /grants /the /same /right. C. /The /right /of /each /FATF /member /country /to /delegate /prosecution /of / a /case /of /money /laundering /to /another /member /that /is /already /investigating /the /same /case. D. / A /rule /in /the /law /of /a /country /allowing /its /authorities /to /cooperate /with /authorities /of /other /countries /to /the /degree /that /their /law /allows /them /to /do /the /same. /- /correct /answer(s) / ✔✔ /D The /greatest /risk /for /money /laundering /is /for /casinos /that A. /Provide /their /customers /with /a /wide /array /of /gambling /services. B. /Operate /in /a /non-Egmont /member /country. C. /Allow /customers /with /credit /balances /to /withdraw /funds /by /check /in /another /jurisdiction. D. /Only /send /suspicious
/transaction /reports /to /the /nancial /intelligence /unit /of /the /country /it /operates /in. /- /correct /answer(s) / ✔✔ /C Which /statement /is /true /regarding /the /risk /of /Politically /Exposed /Persons /(PEPs)? A. /PEPs /provide /access /to /third /parties /on /whom /the /nancial /institution /has /not /conducted /suf /cient /due /diligence. B. /PEPs /have /signi /cantly /greater /exposure /to /the /politically /corrupt /funds, /including /accepting /bribes /or /misappropriating /government /funds. C. /PEPs /are /foreign /customers /who /inherently /present /additional /risk /as /they /are /engaged /in /cross- border /transactions. D. /PEPs /generally /do /not /pose /enhanced /risks /to /an /institution /due /to /their /political /standing; /rather, /PEPs /increase /the /prestige /of /an /institution. /- /correct /answer(s) / ✔✔ /B Dirty /money, /derived /from /criminal /activities /of Belgian /Criminal /A, /is /sent /to /a /foreign /bank /account of /Corporation /B. /Then /in /Belgium, /a /new /investment /Company /C /is /incorporated. /Criminal /A /is /appointed /as /a /director /of /Company /C. /Company /C /borrows /money /from /the /foreign /Company /B /and /buys /real /estate /in /Belgium. /The
/new /customer /approaches / a /bank /to /open / a /commercial /account. /The /customer /provides /an /address /for /the /account /located /across /the /city /from /the /branch. /When /asked /by /the /account /representative /if /the /customer /requires /any /additional /banking /services, /the /customer /responds /she /is /also /interested /in /opening / a /personal /investment /account. /The /account /representative /refers /the /customer /to /their /broker- dealer.
/The /customer /tells /the /rm /representative /she /has /never /had / a /brokerage /account /before /and /has /a /few /questions /about /how /an /investment /account /works. /The /customer /asks /how /deposits /can /be /made /into /her /account, /if /there /are /any /reporting /requirements, /and /how /to /go /about /moving /balances /out /of
/is /true? /Correspondent /banking /is /MOST /vulnerable /to /money /laundering /when /the /correspondent /account /is: A. /Maintained /for /foreign /nancial /institutions /that /are /banks. B. /Not /used /to /provide /services /directly /to /third /parties. C. /Maintained /for /a /foreign /bank /that /does /not /have /a /physical /presence /in /any /country. D. /Maintained /for / a /foreign /private /bank /that /is /publicly /traded /and /is /a /quali /ed /intermediary. /- /correct /answer(s) / ✔✔ /C Which /statement /is /true? /Lawyers: A. /In /FATF /member /countries /can /generally /not /be /used /to /serve /as /formation /agents /to /set /up /trusts, /front /companies /or /shell /companies. B. /And /similar /professional /"gatekeepers" /are /called /money /services /businesses. C. /Can /generally /not /be /used /to /act /as /a /nominee /shareholder /for /a /bene /cial /owner. D. /Can /be /abused /by /launderers /by
/using /the /accounts /they /set /up /for /them /for /the /placement /and /layering /of /funds. /- /correct /answer(s) / ✔✔ /D The /Third /EU /Money /Laundering /Directive /of / 2005 /applies /to /which /of /the /following /rms? A. /Auditors, /estate /agents /based /in /the /EU. B. /U.S. /Financial /institutions /covered /by /the /USA Patriot /Act. C. /Shell /rms /inside /and /outside /the /EU. D. /EU /based /high /value /good /dealers /who /deal /in /cash /of /10,000 /Euro /or /more. /- /correct /answer(s) / ✔✔ /A According /to /the /EU /Directives /of /2001, /an /independent /legal /professional /is /obligated /to /report /suspicion /of /money /laundering /in /a /client /relationship /when: A. /Representing /a /client /in /a /legal /matter. B. /Ascertaining /the /legal /position /for /a /client. C. /Participating /in /nancial /or /corporate /transactions. D. /Obtaining /information /associated /with /a /judicial /proceeding. /- /correct /answer(s) / ✔✔ /C
What /is /the /de /nition /of /a /predicate /offense? A. /Lawful /or /unlawful /activity /that /involves /willful /blindness, /and /if /there /is /an /international /element /to /the /crime, /can /lead /to /a /suspicious /activity /report. B. /Unlawful /activity /whose /proceeds, /if /involved /in /the /transaction, /can /give /rise /to /prosecution /for /the /crime /of /money /laundering. C. /An /interface /which /is /the /underlying /segment /of /a /suspicious /transaction /monitoring /system. D. / A /speci /ed /unlawful /activity /that /is /committed /through /concentration /accounts /deceiving /customers /that /are /not /directly /related /to /the /account. /- /correct /answer(s) / ✔✔ /B What /is /considered /a /bene /cial /owner /of /an /account? /A /person /or /entity: A. /That /has /direct /signatory /authority /over /an /account, /and /whose /name /appears /on /the /account.
/That /is /ultimately /entitled /to /the /funds /in /the /account, /even /though /his /name /may /not /appear /on /the /account. C. /That /is /the /originator /and /the /destination /of /most /(but /not /all) /transactions /conducted /within /the /account, /but /who /does /not /ultimately /control /such /funds. D. /That /is / a /gatekeeper, /has /the /legal /title /to /the /account, /and /typically /transfers /the /funds /to /a /trust. /- /correct /answer(s) / ✔✔ /B A /bank /in /Italy /holds / a /business
