Money Laundering Test Questions and
Answers | Latest Version | 2024/2025 |
Already Passed
What is the primary method used to launder money through the layering stage?
- Direct transfer of funds between accounts
- Deposit of cash into bank accounts
- ✔✔ Use of complex financial transactions to obscure the origins of the funds
- Purchase of high-value items with cash
Which of the following is a common red flag that might indicate money laundering activities?
- Regularly scheduled bank transactions
- ✔✔ Large, unexplained cash deposits or withdrawals
- Consistent monthly bill payments
- Frequent use of online banking services
1
,Which government agency is typically responsible for enforcing AML regulations in the United
States?
- Securities and Exchange Commission (SEC)
- Federal Bureau of Investigation (FBI)
- ✔✔ Financial Crimes Enforcement Network (FinCEN)
- Internal Revenue Service (IRS)
What is the purpose of a "know your customer" (KYC) policy?
- To establish customer creditworthiness
- ✔✔ To verify the identity of clients and understand their financial activities
- To offer customer loyalty programs
- To increase the bank's market share
What does the term "smurfing" refer to in the context of money laundering?
- ✔✔ Breaking down large sums of money into smaller, less suspicious amounts
2
,- Using fake identities to open multiple accounts
- Investing in high-risk financial instruments
- Transferring funds across multiple international borders
Which type of financial institution is commonly targeted for money laundering due to its high
volume of transactions?
- Insurance companies
- ✔✔ Money services businesses (MSBs)
- Credit unions
- Mortgage lenders
What is a common method used in trade-based money laundering?
- ✔✔ Over- or under-invoicing for goods and services
- Purchasing and reselling consumer goods
- Transferring funds through online payment platforms
- Using cash to buy precious metals
3
, What role do international financial regulations play in combating money laundering?
- They standardize banking operations globally
- They facilitate easier cross-border transactions
- ✔✔ They help create a consistent framework for monitoring and preventing money laundering
- They increase profits for financial institutions
What is a "shell company" often used for in money laundering schemes?
- To conduct legitimate business activities
- To manage large investment portfolios
- ✔✔ To conceal the true ownership and source of illicit funds
- To provide financial services to a wide range of clients
How can financial institutions mitigate the risk of money laundering through customer due
diligence?
4
Answers | Latest Version | 2024/2025 |
Already Passed
What is the primary method used to launder money through the layering stage?
- Direct transfer of funds between accounts
- Deposit of cash into bank accounts
- ✔✔ Use of complex financial transactions to obscure the origins of the funds
- Purchase of high-value items with cash
Which of the following is a common red flag that might indicate money laundering activities?
- Regularly scheduled bank transactions
- ✔✔ Large, unexplained cash deposits or withdrawals
- Consistent monthly bill payments
- Frequent use of online banking services
1
,Which government agency is typically responsible for enforcing AML regulations in the United
States?
- Securities and Exchange Commission (SEC)
- Federal Bureau of Investigation (FBI)
- ✔✔ Financial Crimes Enforcement Network (FinCEN)
- Internal Revenue Service (IRS)
What is the purpose of a "know your customer" (KYC) policy?
- To establish customer creditworthiness
- ✔✔ To verify the identity of clients and understand their financial activities
- To offer customer loyalty programs
- To increase the bank's market share
What does the term "smurfing" refer to in the context of money laundering?
- ✔✔ Breaking down large sums of money into smaller, less suspicious amounts
2
,- Using fake identities to open multiple accounts
- Investing in high-risk financial instruments
- Transferring funds across multiple international borders
Which type of financial institution is commonly targeted for money laundering due to its high
volume of transactions?
- Insurance companies
- ✔✔ Money services businesses (MSBs)
- Credit unions
- Mortgage lenders
What is a common method used in trade-based money laundering?
- ✔✔ Over- or under-invoicing for goods and services
- Purchasing and reselling consumer goods
- Transferring funds through online payment platforms
- Using cash to buy precious metals
3
, What role do international financial regulations play in combating money laundering?
- They standardize banking operations globally
- They facilitate easier cross-border transactions
- ✔✔ They help create a consistent framework for monitoring and preventing money laundering
- They increase profits for financial institutions
What is a "shell company" often used for in money laundering schemes?
- To conduct legitimate business activities
- To manage large investment portfolios
- ✔✔ To conceal the true ownership and source of illicit funds
- To provide financial services to a wide range of clients
How can financial institutions mitigate the risk of money laundering through customer due
diligence?
4
