ACAMS Exam Bundle Questions and Answers with complete solutions

Define "smurfing." - ANSWER-The use of multiple individuals and/or transactions for making cash deposits, buying monetary transactions or banks drafts in amounts under the reporting threshold. (NB: Some equate this term with structuring) What are the sections of the USA PATRIOT Act pertainin...

Define a red flag. - ANSWER-A warning signal that should bring attention to a potentially suspicious situation, transaction or activity. Define willful blindness. - ANSWER-A legal principle that operates in money laundering cases in the U.S. and is defined by courts as the "deliberate avoidance ...

Describe FATF's recommendation 15 (2012) on new technologies - ANSWER-Countries and financial institutions should assess the risks associated with developments of new products, business practices, delivery mechanisms and technology. Financial institutions should assess these risks prior to launchin...

2 ways remittance services can foster ML - ANSWER-• Packages containing large cash sums and even drugs anonymously . • Another technique commonly used by money remitters and currency exchanges is for the broker to make the funds available to the criminal organization at the destination country...

When a bank is served with a search warrant, what next steps should it consider? (7) - ANSWER-1.) Call the legal department/legal counsel 2.) Review the warrant to understand its scope 3.) Ask for and obtain a copy of the warrant 4.) Ask for a copy of the affidavit that supports the search warra...

According to the Egmont Group, What is the definition of a Financial Intelligence Unit (FIU)? - ANSWER-A central, national agency responsible for receiving & permitted, requesting, analyzing & disseminating to the competent authorities, disclosures of financial information, Concerning suspected proc...

Give an example of the first stage of money laundering. - ANSWER-- Co-mingling illegitimate funds with legitimate ones; - making foreign exchange transactions with illegal funds; - depositing small amounts of cash into various accounts; - currency smuggling by cross border physical movement of...

Describe FATF's Recommendation 15 (2012) on new technologies. - ANSWER-Countries and financial institutions should assess the risks associated with developments of new products, business practices, delivery mechanisms and technology. Financial institutions should assess these risks prior to launchi...

Identify the seven topics of international standards incorporated into the FATF 40 recommendations (2012) - ANSWER--AML/CFT policies and procedures ( 1-2) -money laundering and confiscation( 2-4) -terrorist financing and financing of proliferation ( 5-8) -financial and non-financial institution p...

Which statement is true? - ANSWER-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 Which 3 of ...

Starting with its own members, FATF: - ANSWER-Monitors countries' progress in implementing the FATF Recommendations Reviews ML/TF techniques and counter-measures Promotes the adoption and implementation of the FATF Recommendations globally. FATF fulfills its stated objects by spreading the spr...

What are the sections of the USA PATRIOT Act pertaining to AML due diligence? - ANSWER-*Section 312* -- Requirement that institutions create risk-based due diligence programs *Section 313* -- Prohibits US financial institutions from dealing with shell banks *Section 319* -- Requires US financial i...

2 Ways to launder money in Real Estate - ANSWER-• By way of chain transactions in real estate to cloak the illicit source of funds (the layering phase), • By investment in, for example, tourist or holiday complexes that lend an appearance of legality (the integration phase). Ch 2.1 - 3 main ...

Define willful blindness. - ANSWER-A legal principle that operates in money laundering cases in the U.S. and is defined by courts as the "deliberate avoidance of knowledge of the facts" or purposeful indifference. Courts have held that willful blindness is the equivalent of actual knowledge of the...