ACFCS Practice Test - Questions With Correct
Solutions
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 Correct 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. Correct
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 Correct Answer - D) The payments are
in varying amounts and their purpose is always the same in the
SWIFT messaging.
Solutions
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 Correct 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. Correct
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 Correct Answer - D) The payments are
in varying amounts and their purpose is always the same in the
SWIFT messaging.
