ACAMS Questions and Answers with Verified Solutions | Latest 2026
Update
Q: Ponzi Scheme
Answer:
A money laundering system named after Charles Ponzi, an Italian immigrant
who spent 10 years in jail in the U.S. for a scheme that defrauded 40,000 people out
of
$15,000,000. Ponzi's name
became synonymous with the use of new investors' money to pay off prior investors.
Ponzi
schemes involve fake, non-existent investment schemes in which the investors are
tricked into
investing on the promise of unusually attractive returns. The operator of the scheme
can keep
the operation going by paying off early investors with the money from new investors
until the
scheme collapses under its own weight and/or the promoter vanishes with the
remaining
money.
,ACAMS Questions and Answers with Verified Solutions | Latest 2026
Update
Q: Predicate Crimes
Answer:
"Specified unlawful activities" whose proceeds, if involved in the subject
transaction, can give rise to prosecution for money laundering. Most anti-money
laundering
laws contain a wide definition or listing of such underlying crimes. Sometimes
defined as
felonies or all offenses in the criminal code.
Q: Private Banking
Answer:
A department in a financial institution that provides high-end services to
wealthy individuals. The transactions tend to be marked with confidentiality,
complex beneficial
ownership
arrangements, offshore investment vehicles, tax shelters and credit extension
services.
,ACAMS Questions and Answers with Verified Solutions | Latest 2026
Update
Q: Private Investment Company
Answer:
Personal Investment Company, a PIC is a type of corporation
that is often
established in an offshore jurisdiction with tight secrecy laws to protect the privacy
of its
owners. In some jurisdictions, an international business company or exempt company
is
referred to as a private investment company.
Q: Pyramid Scheme
Answer:
A type of fraud, of which a ponzi scheme is a subset.
Q: Red Flag
Answer:
A warning signal that should bring attention to a potentially suspicious situation,
transaction
, ACAMS Questions and Answers with Verified Solutions | Latest 2026
Update
Q: or activity.
Answer:
Q: Regulatory Agency
Answer:
A government entity responsible for supervising and overseeing one or
more categories of financial institutions. The agency generally has authority to issue
regulations, to conduct examinations, to impose fines and penalties, to curtail
activities and,
sometimes, to terminate charters of institutions under its jurisdiction. Most play a
major role in
preventing and detecting money laundering and other financial crimes. Their focus is
usually on
domestic institutions, but some have the ability to regulate foreign branches and
operations of
institutions.
Update
Q: Ponzi Scheme
Answer:
A money laundering system named after Charles Ponzi, an Italian immigrant
who spent 10 years in jail in the U.S. for a scheme that defrauded 40,000 people out
of
$15,000,000. Ponzi's name
became synonymous with the use of new investors' money to pay off prior investors.
Ponzi
schemes involve fake, non-existent investment schemes in which the investors are
tricked into
investing on the promise of unusually attractive returns. The operator of the scheme
can keep
the operation going by paying off early investors with the money from new investors
until the
scheme collapses under its own weight and/or the promoter vanishes with the
remaining
money.
,ACAMS Questions and Answers with Verified Solutions | Latest 2026
Update
Q: Predicate Crimes
Answer:
"Specified unlawful activities" whose proceeds, if involved in the subject
transaction, can give rise to prosecution for money laundering. Most anti-money
laundering
laws contain a wide definition or listing of such underlying crimes. Sometimes
defined as
felonies or all offenses in the criminal code.
Q: Private Banking
Answer:
A department in a financial institution that provides high-end services to
wealthy individuals. The transactions tend to be marked with confidentiality,
complex beneficial
ownership
arrangements, offshore investment vehicles, tax shelters and credit extension
services.
,ACAMS Questions and Answers with Verified Solutions | Latest 2026
Update
Q: Private Investment Company
Answer:
Personal Investment Company, a PIC is a type of corporation
that is often
established in an offshore jurisdiction with tight secrecy laws to protect the privacy
of its
owners. In some jurisdictions, an international business company or exempt company
is
referred to as a private investment company.
Q: Pyramid Scheme
Answer:
A type of fraud, of which a ponzi scheme is a subset.
Q: Red Flag
Answer:
A warning signal that should bring attention to a potentially suspicious situation,
transaction
, ACAMS Questions and Answers with Verified Solutions | Latest 2026
Update
Q: or activity.
Answer:
Q: Regulatory Agency
Answer:
A government entity responsible for supervising and overseeing one or
more categories of financial institutions. The agency generally has authority to issue
regulations, to conduct examinations, to impose fines and penalties, to curtail
activities and,
sometimes, to terminate charters of institutions under its jurisdiction. Most play a
major role in
preventing and detecting money laundering and other financial crimes. Their focus is
usually on
domestic institutions, but some have the ability to regulate foreign branches and
operations of
institutions.
