ACAMS Practice Test (Book)| QUESTIONS AND
ANSWERS | 2026 NEW UPDATE | WITH
COMPLETE SOLUTION
Which statement is true regarding the risk of Politically Exposed Persons
(PEPs)? - ANSWERS-PEPs have significantly greater exposure to the
politically corrupt funds, including accepting bribes or misappropriating
government funds
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 real estate is rented to third parties. Director
(Criminal) A also rents an apartment in the building .With the funds
generated by the rent, Company C pays off the loan to Corporation B, and
the salary of Director A. Criminal A now converted his dirty money in legal
funds .This laundering method is commonly referred to as what? -
ANSWERS-Loan back
A 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 broke-dealer. The customer tells
the firm 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 the account
using wire transfers. No questions are asked about fees associated with
these transactions. Which three items would be considered suspicious? -
ANSWERS-The customer asks many questions about the brokerage account,
but none of them are related to investing.
,The address of the account holder and the branch where the customer came
to open the account are not close to each other.
That the customer appears unconcerned about the fees.
International trade in goods and services can be used as either a cover for
money laundering or as the laundering mechanism itself. What is MOST
important for the launderer when engaging in this method? The ability: -
ANSWERS-To over-or under-invoice the goods.
Which of the following is the most common method of laundering money
through a legal money services business? - ANSWERS-Purchasing
structured money instruments
In general, the 3 phases of money laundering are said to be: Placement; -
ANSWERS-Layering and integration
Which statement is true? - ANSWERS-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 the following is an indication of possible money laundering in an
insurance industry scenario? - ANSWERS--Single-premium insurance bonds,
redeemed at a discount
-Policyholders who are unconcerned about penalties for early cancellation
-Policyholders who make full use of the "free look" period
Which 2 activities are typically associated with the black market peso
exchange (BMPE) money laundering system? - ANSWERS--Converting illicit
drug proceeds from dollars or Euros to Colombian pesos
, -Facilitating purchases by Colombian importers of goods manufactured in the
United States or Europe through peso brokers
What is the Right of Reciprocity in the field of in the field of international
cooperation against money laundering? - ANSWERS-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
The greatest risk for money laundering is for casinos that - ANSWERS-Allow
customers with credit balances to withdraw funds by check in another
jurisdiction
Which of the following statements is true? Correspondent banking is MOST
vulnerable to money laundering when the correspondent account is: -
ANSWERS-Maintained for a foreign bank that does not have a physical
presence in any country.
Which statement is true? Lawyers: - ANSWERS-Can be abused by
launderers by using the accounts they set up for them for the placement and
layering of funds.
The Third EU Money Laundering Directive of 2005 applies to which of the
following firms? - ANSWERS-Auditors, estate agents based in the EU.
According to the EU Directives of 2001, an independent legal professional is
obligated to report suspicion of money laundering in a client relationship
when: - ANSWERS-Participating in financial or corporate transactions.
Which of the followings is the most difficult regulatory challenge facing a
foreign financial institution with a correspondent banking relationship in the
U.S.? - ANSWERS-USA Patriot Act
ANSWERS | 2026 NEW UPDATE | WITH
COMPLETE SOLUTION
Which statement is true regarding the risk of Politically Exposed Persons
(PEPs)? - ANSWERS-PEPs have significantly greater exposure to the
politically corrupt funds, including accepting bribes or misappropriating
government funds
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 real estate is rented to third parties. Director
(Criminal) A also rents an apartment in the building .With the funds
generated by the rent, Company C pays off the loan to Corporation B, and
the salary of Director A. Criminal A now converted his dirty money in legal
funds .This laundering method is commonly referred to as what? -
ANSWERS-Loan back
A 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 broke-dealer. The customer tells
the firm 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 the account
using wire transfers. No questions are asked about fees associated with
these transactions. Which three items would be considered suspicious? -
ANSWERS-The customer asks many questions about the brokerage account,
but none of them are related to investing.
,The address of the account holder and the branch where the customer came
to open the account are not close to each other.
That the customer appears unconcerned about the fees.
International trade in goods and services can be used as either a cover for
money laundering or as the laundering mechanism itself. What is MOST
important for the launderer when engaging in this method? The ability: -
ANSWERS-To over-or under-invoice the goods.
Which of the following is the most common method of laundering money
through a legal money services business? - ANSWERS-Purchasing
structured money instruments
In general, the 3 phases of money laundering are said to be: Placement; -
ANSWERS-Layering and integration
Which statement is true? - ANSWERS-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 the following is an indication of possible money laundering in an
insurance industry scenario? - ANSWERS--Single-premium insurance bonds,
redeemed at a discount
-Policyholders who are unconcerned about penalties for early cancellation
-Policyholders who make full use of the "free look" period
Which 2 activities are typically associated with the black market peso
exchange (BMPE) money laundering system? - ANSWERS--Converting illicit
drug proceeds from dollars or Euros to Colombian pesos
, -Facilitating purchases by Colombian importers of goods manufactured in the
United States or Europe through peso brokers
What is the Right of Reciprocity in the field of in the field of international
cooperation against money laundering? - ANSWERS-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
The greatest risk for money laundering is for casinos that - ANSWERS-Allow
customers with credit balances to withdraw funds by check in another
jurisdiction
Which of the following statements is true? Correspondent banking is MOST
vulnerable to money laundering when the correspondent account is: -
ANSWERS-Maintained for a foreign bank that does not have a physical
presence in any country.
Which statement is true? Lawyers: - ANSWERS-Can be abused by
launderers by using the accounts they set up for them for the placement and
layering of funds.
The Third EU Money Laundering Directive of 2005 applies to which of the
following firms? - ANSWERS-Auditors, estate agents based in the EU.
According to the EU Directives of 2001, an independent legal professional is
obligated to report suspicion of money laundering in a client relationship
when: - ANSWERS-Participating in financial or corporate transactions.
Which of the followings is the most difficult regulatory challenge facing a
foreign financial institution with a correspondent banking relationship in the
U.S.? - ANSWERS-USA Patriot Act
