ACAMS Practice Questions
B - ✔ ✔ In general, the three phases of money laundering are said to be:
Placement:
A. Structuring and manipulation.
B. Layering and integration.
C. Layering and smur ng.
D. Integration and in ltration.
A - ✔ ✔ Which of the following is the most common method of laundering
money through a legal money services business?
A. Purchasing structured money instruments.
B. Smuggling bulk-cash.
C. Transferring funds through Payable Through Accounts (PTAs).
D. Exchanging Colombian pesos on the black market.
A - ✔ ✔ Which statement is true?
,A. Bust-out schemes are popular in creating large bankruptcy frauds where
businesses secure increasing loans in excess of the actual value of the company
or property and then run with the money, leaving the lender to foreclose and
take a substantial loss.
B. Cuckoo smur ng is a signi cant money laundering technique identi ed by the
Financial Action Task Force, where a form of structuring uses nested accounts
with shell banks in secrecy havens.
C. In its 40 Recommendations, the FATF issued a list of "designated categories of
offense" that asserts crimes for a money laundering prosecution.
D. E-cash is not attractive to the money launderer because it cannot be
completely anonymous and does not allow for large amounts to be
"transported" quickly and easily.
BCD - ✔ ✔ Which three of the following is an indication of possible money
laundering in an insurance industry scenario?
A. Insurance products sold through intermediaries, agents or brokers.
B. Single-premium insurance bonds, redeemed at a discount.
C. Policyholders who are unconcerned about penalties for early cancellation.
D. Policyholders who make full use of the "free look" period.
,AC - ✔ ✔ Which two activities are typically associated with the black market
peso exchange (BMPE) money laundering system?
A. Converting illicit drug proceeds from dollars or Euros to Colombian pesos.
B. Converting illicit drug proceeds from Colombian pesos to dollars or Euros.
C. Facilitating purchases by Colombian importers of goods manufactured in the
United States or Europe through peso brokers.
D. Facilitating purchases by European or U.S. importers of goods manufactured
in Colombia through peso brokers.
D - ✔ ✔ What is the Right of Reciprocity in the eld of international
cooperation against money laundering?
A. The legal principle that nancial institutions that have referred customers to
other nancial institutions can share information about these customers with the
other institutions.
B. A rule of the Basel Committee allowing properly regulated nancial institutes
of another member state of the Basel Committee to do business without
additional supervision to the degree that the other state grants the same right.
C. The right of each FATF member country to delegate prosecution of a case of
money laundering to another member that is already investigating the same
case.
, D. A rule in the law of a country allowing its authorities to cooperate with
authorities of other countries to the degree that their law allows them to do the
same.
C - ✔ ✔ The greatest risk for money laundering is for casinos that
A. Provide their customers with a wide array of gambling services.
B. Operate in a non-Egmont member country.
C. Allow customers with credit balances to withdraw funds by check in another
jurisdiction.
D. Only send suspicious transaction reports to the nancial intelligence unit of
the country it operates in.
B - ✔ ✔ Which statement is true regarding the risk of Politically Exposed
Persons (PEPs)?
A. PEPs provide access to third parties on whom the nancial institution has not
conducted suf cient due diligence.
B. PEPs have signi cantly greater exposure to the politically corrupt funds,
including accepting bribes or misappropriating government funds.
C. PEPs are foreign customers who inherently present additional risk as they are
engaged in cross-border transactions.
B - ✔ ✔ In general, the three phases of money laundering are said to be:
Placement:
A. Structuring and manipulation.
B. Layering and integration.
C. Layering and smur ng.
D. Integration and in ltration.
A - ✔ ✔ Which of the following is the most common method of laundering
money through a legal money services business?
A. Purchasing structured money instruments.
B. Smuggling bulk-cash.
C. Transferring funds through Payable Through Accounts (PTAs).
D. Exchanging Colombian pesos on the black market.
A - ✔ ✔ Which statement is true?
,A. Bust-out schemes are popular in creating large bankruptcy frauds where
businesses secure increasing loans in excess of the actual value of the company
or property and then run with the money, leaving the lender to foreclose and
take a substantial loss.
B. Cuckoo smur ng is a signi cant money laundering technique identi ed by the
Financial Action Task Force, where a form of structuring uses nested accounts
with shell banks in secrecy havens.
C. In its 40 Recommendations, the FATF issued a list of "designated categories of
offense" that asserts crimes for a money laundering prosecution.
D. E-cash is not attractive to the money launderer because it cannot be
completely anonymous and does not allow for large amounts to be
"transported" quickly and easily.
BCD - ✔ ✔ Which three of the following is an indication of possible money
laundering in an insurance industry scenario?
A. Insurance products sold through intermediaries, agents or brokers.
B. Single-premium insurance bonds, redeemed at a discount.
C. Policyholders who are unconcerned about penalties for early cancellation.
D. Policyholders who make full use of the "free look" period.
,AC - ✔ ✔ Which two activities are typically associated with the black market
peso exchange (BMPE) money laundering system?
A. Converting illicit drug proceeds from dollars or Euros to Colombian pesos.
B. Converting illicit drug proceeds from Colombian pesos to dollars or Euros.
C. Facilitating purchases by Colombian importers of goods manufactured in the
United States or Europe through peso brokers.
D. Facilitating purchases by European or U.S. importers of goods manufactured
in Colombia through peso brokers.
D - ✔ ✔ What is the Right of Reciprocity in the eld of international
cooperation against money laundering?
A. The legal principle that nancial institutions that have referred customers to
other nancial institutions can share information about these customers with the
other institutions.
B. A rule of the Basel Committee allowing properly regulated nancial institutes
of another member state of the Basel Committee to do business without
additional supervision to the degree that the other state grants the same right.
C. The right of each FATF member country to delegate prosecution of a case of
money laundering to another member that is already investigating the same
case.
, D. A rule in the law of a country allowing its authorities to cooperate with
authorities of other countries to the degree that their law allows them to do the
same.
C - ✔ ✔ The greatest risk for money laundering is for casinos that
A. Provide their customers with a wide array of gambling services.
B. Operate in a non-Egmont member country.
C. Allow customers with credit balances to withdraw funds by check in another
jurisdiction.
D. Only send suspicious transaction reports to the nancial intelligence unit of
the country it operates in.
B - ✔ ✔ Which statement is true regarding the risk of Politically Exposed
Persons (PEPs)?
A. PEPs provide access to third parties on whom the nancial institution has not
conducted suf cient due diligence.
B. PEPs have signi cantly greater exposure to the politically corrupt funds,
including accepting bribes or misappropriating government funds.
C. PEPs are foreign customers who inherently present additional risk as they are
engaged in cross-border transactions.
