ACAMS PRACTICE TEST (BOOK) WITH ALL CORRECT &
100% VERIFIED ANSWERS|LATEST VERSION|ALREADY
GRADED A+
Which of the following is the most common method of laundering money through a legal money
services business? ✔Correct Answer-Purchasing structured money instruments
In general, the 3 phases of money laundering are said to be: Placement; ✔Correct Answer-Layering
and integration
Which statement is true? ✔Correct Answer-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
Which 3 of the following is an indication of possible money laundering in an insurance industry
scenario? ✔Correct Answer--Single-premium insurance bonds, redeemed at a discount
-Policyholders who are unconcerned about penalties for early cancellation
-Policyholders who make full use of the "free look" period
Which 2 activities are typically associated with the black market peso exchange (BMPE) money
laundering system? ✔Correct Answer--Converting illicit drug proceeds from dollars or Euros to
Colombian pesos
-Facilitating purchases by Colombian importers of goods manufactured in the United States or
Europe through peso brokers
What is the Right of Reciprocity in the field of in the field of international cooperation against money
laundering? ✔Correct Answer-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
The greatest risk for money laundering is for casinos that ✔Correct Answer-Allow customers with
credit balances to withdraw funds by check in another jurisdiction
Which statement is true regarding the risk of Politically Exposed Persons (PEPs)? ✔Correct Answer-
PEPs have significantly greater exposure to the politically corrupt funds, including accepting bribes or
misappropriating government funds
Dirty money, derived from criminal activities of Belgian Criminal A, is sent to a foreign bank account
of Corporation B. Then in Belgium, a new investment Company C is incorporated. Criminal A is
appointed as a director of Company C. Company C borrows money from the foreign Company B and
buys real estate in Belgium. The real estate is rented to third parties. Director (Criminal) A also rents
an apartment in the building .With the funds generated by the rent, Company C pays off the loan to
Corporation B, and the salary of Director A. Criminal A now converted his dirty money in legal
funds .This laundering method is commonly referred to as what? ✔Correct Answer-Loan back
A new customer approaches a bank to open a commercial account. The customer provides an
address for the account located across the city from the branch. When asked by the account
representative if the customer requires any additional banking services, the customer responds she
, is also interested in opening a personal investment account. The account representative refers the
customer to their broke-dealer. The customer tells the firm representative she has never had a
brokerage account before and has a few questions about how an investment account works. The
customer asks how deposits can be made into her account, if there are any reporting requirements,
and how to go about moving balances out of the account using wire transfers. No questions are
asked about fees associated with these transactions. Which three items would be considered
suspicious? ✔Correct Answer-The customer asks many questions about the brokerage account,
but none of them are related to investing.
The address of the account holder and the branch where the customer came to open the account are
not close to each other.
That the customer appears unconcerned about the fees.
International trade in goods and services can be used as either a cover for money laundering or as
the laundering mechanism itself. What is MOST important for the launderer when engaging in this
method? The ability: ✔Correct Answer-To over-or under-invoice the goods.
Which of the following statements is true? Correspondent banking is MOST vulnerable to money
laundering when the correspondent account is: ✔Correct Answer-Maintained for a foreign bank
that does not have a physical presence in any country.
Which statement is true? Lawyers: ✔Correct Answer-Can be abused by launderers by using the
accounts they set up for them for the placement and layering of funds.
The Third EU Money Laundering Directive of 2005 applies to which of the following firms?
✔Correct Answer-Auditors, estate agents based in the EU.
According to the EU Directives of 2001, an independent legal professional is obligated to report
suspicion of money laundering in a client relationship when: ✔Correct Answer-Participating in
financial or corporate transactions.
Which of the followings is the most difficult regulatory challenge facing a foreign financial institution
with a correspondent banking relationship in the U.S.? ✔Correct Answer-USA Patriot Act
Which were the Basel Committee's 2 main motivations to encourage strong Know Your Customer
programs in it's paper "Customer Due Diligence for Banks? ✔Correct Answer--Protect the safety
and soundness of banks
-Protect the integrity of banking systems
What is the definition of a predicate offense? ✔Correct Answer-Unlawful activity whose proceeds,
if involved in the transaction, can give rise to prosecution for the crime of money laundering
What is considered a beneficial owner of an account? A person or entity: ✔Correct Answer-That is
ultimately entitled to the funds in the account, even though his name may not appear on the
account
A bank in Italy holds a business account for a Italian company that sells gold throughout Europe and
the Western Hemisphere. The bank knows the purpose of this account is to receive payment for
sales. A review of the account shows a pattern of wire transfers coming from payable-through
accounts. There is also a pattern of purchases of gold bullion held in Swiss banks. The MOST
100% VERIFIED ANSWERS|LATEST VERSION|ALREADY
GRADED A+
Which of the following is the most common method of laundering money through a legal money
services business? ✔Correct Answer-Purchasing structured money instruments
In general, the 3 phases of money laundering are said to be: Placement; ✔Correct Answer-Layering
and integration
Which statement is true? ✔Correct Answer-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
Which 3 of the following is an indication of possible money laundering in an insurance industry
scenario? ✔Correct Answer--Single-premium insurance bonds, redeemed at a discount
-Policyholders who are unconcerned about penalties for early cancellation
-Policyholders who make full use of the "free look" period
Which 2 activities are typically associated with the black market peso exchange (BMPE) money
laundering system? ✔Correct Answer--Converting illicit drug proceeds from dollars or Euros to
Colombian pesos
-Facilitating purchases by Colombian importers of goods manufactured in the United States or
Europe through peso brokers
What is the Right of Reciprocity in the field of in the field of international cooperation against money
laundering? ✔Correct Answer-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
The greatest risk for money laundering is for casinos that ✔Correct Answer-Allow customers with
credit balances to withdraw funds by check in another jurisdiction
Which statement is true regarding the risk of Politically Exposed Persons (PEPs)? ✔Correct Answer-
PEPs have significantly greater exposure to the politically corrupt funds, including accepting bribes or
misappropriating government funds
Dirty money, derived from criminal activities of Belgian Criminal A, is sent to a foreign bank account
of Corporation B. Then in Belgium, a new investment Company C is incorporated. Criminal A is
appointed as a director of Company C. Company C borrows money from the foreign Company B and
buys real estate in Belgium. The real estate is rented to third parties. Director (Criminal) A also rents
an apartment in the building .With the funds generated by the rent, Company C pays off the loan to
Corporation B, and the salary of Director A. Criminal A now converted his dirty money in legal
funds .This laundering method is commonly referred to as what? ✔Correct Answer-Loan back
A new customer approaches a bank to open a commercial account. The customer provides an
address for the account located across the city from the branch. When asked by the account
representative if the customer requires any additional banking services, the customer responds she
, is also interested in opening a personal investment account. The account representative refers the
customer to their broke-dealer. The customer tells the firm representative she has never had a
brokerage account before and has a few questions about how an investment account works. The
customer asks how deposits can be made into her account, if there are any reporting requirements,
and how to go about moving balances out of the account using wire transfers. No questions are
asked about fees associated with these transactions. Which three items would be considered
suspicious? ✔Correct Answer-The customer asks many questions about the brokerage account,
but none of them are related to investing.
The address of the account holder and the branch where the customer came to open the account are
not close to each other.
That the customer appears unconcerned about the fees.
International trade in goods and services can be used as either a cover for money laundering or as
the laundering mechanism itself. What is MOST important for the launderer when engaging in this
method? The ability: ✔Correct Answer-To over-or under-invoice the goods.
Which of the following statements is true? Correspondent banking is MOST vulnerable to money
laundering when the correspondent account is: ✔Correct Answer-Maintained for a foreign bank
that does not have a physical presence in any country.
Which statement is true? Lawyers: ✔Correct Answer-Can be abused by launderers by using the
accounts they set up for them for the placement and layering of funds.
The Third EU Money Laundering Directive of 2005 applies to which of the following firms?
✔Correct Answer-Auditors, estate agents based in the EU.
According to the EU Directives of 2001, an independent legal professional is obligated to report
suspicion of money laundering in a client relationship when: ✔Correct Answer-Participating in
financial or corporate transactions.
Which of the followings is the most difficult regulatory challenge facing a foreign financial institution
with a correspondent banking relationship in the U.S.? ✔Correct Answer-USA Patriot Act
Which were the Basel Committee's 2 main motivations to encourage strong Know Your Customer
programs in it's paper "Customer Due Diligence for Banks? ✔Correct Answer--Protect the safety
and soundness of banks
-Protect the integrity of banking systems
What is the definition of a predicate offense? ✔Correct Answer-Unlawful activity whose proceeds,
if involved in the transaction, can give rise to prosecution for the crime of money laundering
What is considered a beneficial owner of an account? A person or entity: ✔Correct Answer-That is
ultimately entitled to the funds in the account, even though his name may not appear on the
account
A bank in Italy holds a business account for a Italian company that sells gold throughout Europe and
the Western Hemisphere. The bank knows the purpose of this account is to receive payment for
sales. A review of the account shows a pattern of wire transfers coming from payable-through
accounts. There is also a pattern of purchases of gold bullion held in Swiss banks. The MOST
