ACAMS Questions and Answers with Verified Solutions | Latest 2026
Update
Q: Describe a Financial Intelligence Unit (FIU).
Answer:
A business that commingles illicit funds with
revenue generated from the sale of legitimate products or services. Criminals use
front
companies to launder illicit money by giving the funds the appearance of legitimate
origin.
Organized crime has used pizza parlors to mask proceeds from heroin trafficking.
Q: Front companies may have access to substantial illicit funds, allowing them to
subsidize front
Answer:
company products and services at levels well below market rates or even below
manufacturing
costs. Front companies have a competitive advantage over legitimate firms that must
borrow
from financial markets, making it difficult for legitimate businesses to compete with
front
companies.
,ACAMS Questions and Answers with Verified Solutions | Latest 2026
Update
Q: INTERNATIONAL BUSINESS COMPANY What is an International Business
Company (IBC)?
Answer:
A variety of offshore corporate structures, alternately called "exempt companies,"
which are dedicated to business use outside the incorporating jurisdiction, rapid
formation, secrecy, broad powers, low cost, low to zero taxation, and minimal filing
and reporting requirements.
Q: KNOW YOUR CUSTOMER
Answer:
Describe Know Your Customer (KYC). Know Your Customer (KYC) refers to
anti-money
laundering policies and procedures used to determine the true identity of a customer
and the
type of activity that is "normal and expected," and to detect activity that is "unusual"
for a
particular customer. Many experts believe that a sound KYC program is one of the
best tools in
an effective anti-money laundering program.
,ACAMS Questions and Answers with Verified Solutions | Latest 2026
Update
Q: MUTUAL LEGAL ASSISTANCE TREATY What is a Mutual Legal
Assistance Treaty (MLAT)?
Answer:
An agreement among countries allowing for mutual assistance in legal proceedings
and access to documents and witnesses and other legal and judicial resources in the
respective countries, in private and public sectors, for use in official investigations
and prosecutions.
Q: PHYSICAL CROSS-BORDER TRANSPORTATION OF CURRENCY
Answer:
, ACAMS Questions and Answers with Verified Solutions | Latest 2026
Update
Q: Define physical cross-border transportation of currency.
Answer:
The physical cross-border
transportation of currency is defined as any in-bound or out-bound transportation of
currency
or bearer negotiable instruments from one country to another. The term includes:
(1) physical transportation by a natural person, or in that person's accompanying
luggage or
vehicle;
(2) shipment of currency through cargo containers; and
(3) the mailing of currency or bearer negotiable instruments.
Q: RED FLAG
Answer:
Define a red flag. A warning signal that should bring attention to a potentially
suspicious
situation, transaction or activity.
Update
Q: Describe a Financial Intelligence Unit (FIU).
Answer:
A business that commingles illicit funds with
revenue generated from the sale of legitimate products or services. Criminals use
front
companies to launder illicit money by giving the funds the appearance of legitimate
origin.
Organized crime has used pizza parlors to mask proceeds from heroin trafficking.
Q: Front companies may have access to substantial illicit funds, allowing them to
subsidize front
Answer:
company products and services at levels well below market rates or even below
manufacturing
costs. Front companies have a competitive advantage over legitimate firms that must
borrow
from financial markets, making it difficult for legitimate businesses to compete with
front
companies.
,ACAMS Questions and Answers with Verified Solutions | Latest 2026
Update
Q: INTERNATIONAL BUSINESS COMPANY What is an International Business
Company (IBC)?
Answer:
A variety of offshore corporate structures, alternately called "exempt companies,"
which are dedicated to business use outside the incorporating jurisdiction, rapid
formation, secrecy, broad powers, low cost, low to zero taxation, and minimal filing
and reporting requirements.
Q: KNOW YOUR CUSTOMER
Answer:
Describe Know Your Customer (KYC). Know Your Customer (KYC) refers to
anti-money
laundering policies and procedures used to determine the true identity of a customer
and the
type of activity that is "normal and expected," and to detect activity that is "unusual"
for a
particular customer. Many experts believe that a sound KYC program is one of the
best tools in
an effective anti-money laundering program.
,ACAMS Questions and Answers with Verified Solutions | Latest 2026
Update
Q: MUTUAL LEGAL ASSISTANCE TREATY What is a Mutual Legal
Assistance Treaty (MLAT)?
Answer:
An agreement among countries allowing for mutual assistance in legal proceedings
and access to documents and witnesses and other legal and judicial resources in the
respective countries, in private and public sectors, for use in official investigations
and prosecutions.
Q: PHYSICAL CROSS-BORDER TRANSPORTATION OF CURRENCY
Answer:
, ACAMS Questions and Answers with Verified Solutions | Latest 2026
Update
Q: Define physical cross-border transportation of currency.
Answer:
The physical cross-border
transportation of currency is defined as any in-bound or out-bound transportation of
currency
or bearer negotiable instruments from one country to another. The term includes:
(1) physical transportation by a natural person, or in that person's accompanying
luggage or
vehicle;
(2) shipment of currency through cargo containers; and
(3) the mailing of currency or bearer negotiable instruments.
Q: RED FLAG
Answer:
Define a red flag. A warning signal that should bring attention to a potentially
suspicious
situation, transaction or activity.
