CFT FINAL 2026 EXAM REVIEW SOLVED
QUESTIONS AND CORRECT ANSWERS
GRADED A+
◉ What is money laundering?
Answer: The process of concealing the origins of illegally obtained
money, typically by passing it through a complex sequence of
banking transfers or commercial transactions.
◉ What are some common techniques for money laundering?
Answer: Techniques include layering, integration, and placement of
illicit funds into the financial system.
◉ What is a predicate crime?
Answer: A crime that generates proceeds that can be laundered,
such as drug trafficking or fraud.
◉ What is the difference between tax avoidance and tax evasion?
Answer: Tax avoidance is legally minimizing tax liabilities, while tax
evasion is illegally avoiding taxes owed.
◉ What is financial crime?
,Answer: Any non-violent crime that is committed for financial gain,
including fraud, bribery, and money laundering.
◉ What is sanctions evasion?
Answer: The act of circumventing laws or regulations that impose
restrictions on certain individuals or countries.
◉ What is the significance of the case example involving Linguistix?
Answer: It illustrates suspicious transactions that may indicate
money laundering activities.
◉ What is the role of money mules in money laundering?
Answer: Money mules are individuals who transfer illegally obtained
money on behalf of others, often unknowingly.
◉ What are some examples of predicate crimes related to financial
crime?
Answer: Examples include drug trafficking, human trafficking, fraud,
and cyber-enabled crimes.
◉ What is the relationship between terrorism financing and money
laundering?
Answer: Both involve the movement of illicit funds, but terrorism
financing specifically supports terrorist activities.
,◉ What is bribery and corruption in the context of financial crime?
Answer: Bribery involves offering something of value to influence
the actions of an official or other person in charge.
◉ What is the impact of environmental crime on financial systems?
Answer: Environmental crime can lead to significant financial losses
and is often linked to larger criminal enterprises.
◉ What is cyber-enabled crime?
Answer: Crimes that are facilitated by the use of computers or the
internet, including identity theft and online fraud.
◉ What is the purpose of the Certified Anti-Money Laundering
Specialist Task Force?
Answer: To develop and maintain the CAMS certification and
provide resources for professionals in the field.
◉ What are some common indicators of money laundering?
Answer: Indicators include large cash transactions, unusual account
activity, and transactions that do not match the customer's profile.
◉ What is the significance of the FullTechGlobal corruption scandal?
, Answer: It serves as a case study in understanding the complexities
of bribery and corruption in financial crime.
◉ What role does the ACAMS play in anti-money laundering efforts?
Answer: ACAMS provides training, certification, and resources to
help professionals combat money laundering and financial crime.
◉ What is the importance of understanding financial crime risks?
Answer: Understanding these risks is crucial for developing effective
compliance programs and preventing financial crime.
◉ What is the role of financial institutions in preventing money
laundering?
Answer: Financial institutions are required to implement anti-
money laundering (AML) programs to detect and report suspicious
activities.
◉ What is the purpose of the glossary in the CAMS study guide?
Answer: To provide definitions and explanations of acronyms and
terms used throughout the study material.
◉ What is the significance of the CAMS-Audit designation?
Answer: It indicates a specialization in auditing anti-money
laundering programs and compliance.
QUESTIONS AND CORRECT ANSWERS
GRADED A+
◉ What is money laundering?
Answer: The process of concealing the origins of illegally obtained
money, typically by passing it through a complex sequence of
banking transfers or commercial transactions.
◉ What are some common techniques for money laundering?
Answer: Techniques include layering, integration, and placement of
illicit funds into the financial system.
◉ What is a predicate crime?
Answer: A crime that generates proceeds that can be laundered,
such as drug trafficking or fraud.
◉ What is the difference between tax avoidance and tax evasion?
Answer: Tax avoidance is legally minimizing tax liabilities, while tax
evasion is illegally avoiding taxes owed.
◉ What is financial crime?
,Answer: Any non-violent crime that is committed for financial gain,
including fraud, bribery, and money laundering.
◉ What is sanctions evasion?
Answer: The act of circumventing laws or regulations that impose
restrictions on certain individuals or countries.
◉ What is the significance of the case example involving Linguistix?
Answer: It illustrates suspicious transactions that may indicate
money laundering activities.
◉ What is the role of money mules in money laundering?
Answer: Money mules are individuals who transfer illegally obtained
money on behalf of others, often unknowingly.
◉ What are some examples of predicate crimes related to financial
crime?
Answer: Examples include drug trafficking, human trafficking, fraud,
and cyber-enabled crimes.
◉ What is the relationship between terrorism financing and money
laundering?
Answer: Both involve the movement of illicit funds, but terrorism
financing specifically supports terrorist activities.
,◉ What is bribery and corruption in the context of financial crime?
Answer: Bribery involves offering something of value to influence
the actions of an official or other person in charge.
◉ What is the impact of environmental crime on financial systems?
Answer: Environmental crime can lead to significant financial losses
and is often linked to larger criminal enterprises.
◉ What is cyber-enabled crime?
Answer: Crimes that are facilitated by the use of computers or the
internet, including identity theft and online fraud.
◉ What is the purpose of the Certified Anti-Money Laundering
Specialist Task Force?
Answer: To develop and maintain the CAMS certification and
provide resources for professionals in the field.
◉ What are some common indicators of money laundering?
Answer: Indicators include large cash transactions, unusual account
activity, and transactions that do not match the customer's profile.
◉ What is the significance of the FullTechGlobal corruption scandal?
, Answer: It serves as a case study in understanding the complexities
of bribery and corruption in financial crime.
◉ What role does the ACAMS play in anti-money laundering efforts?
Answer: ACAMS provides training, certification, and resources to
help professionals combat money laundering and financial crime.
◉ What is the importance of understanding financial crime risks?
Answer: Understanding these risks is crucial for developing effective
compliance programs and preventing financial crime.
◉ What is the role of financial institutions in preventing money
laundering?
Answer: Financial institutions are required to implement anti-
money laundering (AML) programs to detect and report suspicious
activities.
◉ What is the purpose of the glossary in the CAMS study guide?
Answer: To provide definitions and explanations of acronyms and
terms used throughout the study material.
◉ What is the significance of the CAMS-Audit designation?
Answer: It indicates a specialization in auditing anti-money
laundering programs and compliance.
