ACFCS PRACTICE TEST CORRECT
100%
Your bank has recently received an online application for a new business account from
a company named Integral Operations, LLC. By reviewing the operating agreement and
other documents included in the application, you determine that Integral is incorporated
in the U.S. State of Wyoming. A review of the Wyoming corporate registry online shows
that Integral was formed 10 years ago. An initial internet search finds no company
website, and no further information on the company. The registered agent contact
information and address on the company's most recent annual filing is for Biz
Management Solutions, a corporate services provider. Concerned that ACE Operations
appears to be a shelf corporation, you are conducting further due diligence on the
company's ownership structure. Which is the most appropriate next step to take?
Your bank has recently received an online application for a new business account from
a company n - ANSWER B) Request a company organizational chart that includes
members, directors, and other stakeholders.
You are the compliance/risk officer at ABC Bank. Senior management recently released
plans to issue the bank's first prepaid cards in the coming year. You are aware that drug
trafficking cartels are active in regions in which your institution operates, and recent law
enforcement cases have indicated that cartels may be using prepaid cards to move
value across borders between your country and a neighboring country. As you evaluate
the product team's proposed card features, which control may best mitigate the risk
inherent in prepaid cards?
A) Limit cash withdrawals to certain merchant category codes (MCCs).
B) Impose low dollar limits on cash loads and withdrawals.
C) Limit the number of loads within a specific time frame.
D) Control the number of accounts allowed per person. - ANSWER B) Impose low dollar
limits on cash loads and withdrawals.
You are investigating a Vietnamese clothing manufacturer that is allegedly laundering
money for a human trafficking organization. Deposits to the manufacturer's bank
account totaled $4.5 million (USD) for the year 2012. All deposits originated from a
single source, a shipping corporation in Panama that makes payments through a bank
account in Riga, Latvia. Payments are received through wire transfers. They are always
in varying amounts of dollars and cents and the SWIFT messaging always states that
the payments are for a line of men's suits. Which is LEAST likely to be a red flag for
money laundering?
, A) The owner of the business who is the sole signatory of the bank account resides in
another country.
B) The shipping company is located in Panama, but payments originate from a Latvian
bank in Riga.
C) Payments to the manufacturer are only received from a single customer in another
industry.
D) The payments are in - ANSWER D) The payments are in varying amounts and their
purpose is always the same in the SWIFT messaging.
Securities King was a stock brokerage that collapsed after it was revealed to be running
a Ponzi scheme. The scheme has left behind numerous defrauded investors and the
brokerage is now being liquidated in bankruptcy court. You are an investigative
professional who has been asked to look into a lawyer suspected of involvement in the
Ponzi scheme. The lawyer is thought to have handled funds for Securities King through
his firm's account. There has been no prior investigation of the lawyer, and you currently
have little information him or his firm. What would be the most appropriate first step to
take in your investigation?
A) Contact the lawyer to schedule an interview
B) Conduct physical surveillance of the lawyer to understand his movements
C) Request that a bankruptcy court judge name you a receiver of Securities King
D) Thoroughly research the lawyer and his firm online and in public records - ANSWER
D) Thoroughly research the lawyer and his firm online and in public records
Your institution initiated a project to create new monitoring typologies related to terrorist
financing and update existing ones. As part of this project, a team has gathered a
sample of customer transactions and is reviewing them. Which activity would the team
MOST likely flag as possibly related to terrorist financing?
A) An account held for a restaurant that has substantial cash deposits and then
transfers funds to other accounts.
B) An account that appears to have funds transferred into an account held by an
offshore, private investment company.
C) A customer with a number of even-dollar wire transfers to accounts in jurisdictions
with a reputation for financial secrecy.
100%
Your bank has recently received an online application for a new business account from
a company named Integral Operations, LLC. By reviewing the operating agreement and
other documents included in the application, you determine that Integral is incorporated
in the U.S. State of Wyoming. A review of the Wyoming corporate registry online shows
that Integral was formed 10 years ago. An initial internet search finds no company
website, and no further information on the company. The registered agent contact
information and address on the company's most recent annual filing is for Biz
Management Solutions, a corporate services provider. Concerned that ACE Operations
appears to be a shelf corporation, you are conducting further due diligence on the
company's ownership structure. Which is the most appropriate next step to take?
Your bank has recently received an online application for a new business account from
a company n - ANSWER B) Request a company organizational chart that includes
members, directors, and other stakeholders.
You are the compliance/risk officer at ABC Bank. Senior management recently released
plans to issue the bank's first prepaid cards in the coming year. You are aware that drug
trafficking cartels are active in regions in which your institution operates, and recent law
enforcement cases have indicated that cartels may be using prepaid cards to move
value across borders between your country and a neighboring country. As you evaluate
the product team's proposed card features, which control may best mitigate the risk
inherent in prepaid cards?
A) Limit cash withdrawals to certain merchant category codes (MCCs).
B) Impose low dollar limits on cash loads and withdrawals.
C) Limit the number of loads within a specific time frame.
D) Control the number of accounts allowed per person. - ANSWER B) Impose low dollar
limits on cash loads and withdrawals.
You are investigating a Vietnamese clothing manufacturer that is allegedly laundering
money for a human trafficking organization. Deposits to the manufacturer's bank
account totaled $4.5 million (USD) for the year 2012. All deposits originated from a
single source, a shipping corporation in Panama that makes payments through a bank
account in Riga, Latvia. Payments are received through wire transfers. They are always
in varying amounts of dollars and cents and the SWIFT messaging always states that
the payments are for a line of men's suits. Which is LEAST likely to be a red flag for
money laundering?
, A) The owner of the business who is the sole signatory of the bank account resides in
another country.
B) The shipping company is located in Panama, but payments originate from a Latvian
bank in Riga.
C) Payments to the manufacturer are only received from a single customer in another
industry.
D) The payments are in - ANSWER D) The payments are in varying amounts and their
purpose is always the same in the SWIFT messaging.
Securities King was a stock brokerage that collapsed after it was revealed to be running
a Ponzi scheme. The scheme has left behind numerous defrauded investors and the
brokerage is now being liquidated in bankruptcy court. You are an investigative
professional who has been asked to look into a lawyer suspected of involvement in the
Ponzi scheme. The lawyer is thought to have handled funds for Securities King through
his firm's account. There has been no prior investigation of the lawyer, and you currently
have little information him or his firm. What would be the most appropriate first step to
take in your investigation?
A) Contact the lawyer to schedule an interview
B) Conduct physical surveillance of the lawyer to understand his movements
C) Request that a bankruptcy court judge name you a receiver of Securities King
D) Thoroughly research the lawyer and his firm online and in public records - ANSWER
D) Thoroughly research the lawyer and his firm online and in public records
Your institution initiated a project to create new monitoring typologies related to terrorist
financing and update existing ones. As part of this project, a team has gathered a
sample of customer transactions and is reviewing them. Which activity would the team
MOST likely flag as possibly related to terrorist financing?
A) An account held for a restaurant that has substantial cash deposits and then
transfers funds to other accounts.
B) An account that appears to have funds transferred into an account held by an
offshore, private investment company.
C) A customer with a number of even-dollar wire transfers to accounts in jurisdictions
with a reputation for financial secrecy.
