Strategies Review of Key Quizzes &
Quiz_________________?
Answer✅
A South American (SA) currency exchanger is aligned with the drug trade there. The drug
cartel has large amounts of cash in the United States it needs back in South America. The
currency exchanger finds local companies that need US dollars to pay US firms for goods
that are exported from the US firms to the SA companies. The exchanger receives payment
in the local currency from the SA companies, then uses the drug dollars in the exchanger's
US dollar account to pay the US firms for the goods ordered by the SA companies.
The US firms then ship their products to the SA companies - none the wiser that they were
actually paid with drug money. The currency exchanger then takes the local currency
received from the SA companies and turns those funds over to the drug cartel.
So, the SA companies get their products from the US, usually at an exchange rate better
than they would have gotten from their banks and likely have no knowledge that they were
involved in money laundering. The US firms have made their sales and they too have no idea
of their involvement. The currency exchanger / money launderer has effectively "moved"
hundreds of thousands of dollars (if not more) from the US to SA and changed the dollars
into the local currency in the process.
This is an example of:
1. Trade Price Manipulation
2. Cuckoo Smurfing
3. Black Market Peso Exchange
4. Hawala
1
, Quiz_________________?
-
Answer✅
According to FATF Recommendations, countries should:
I Prosecute all requests from banks in foreign countries.
II Render mutual legal assistance, notwithstanding the absence of dual criminality.
III Where dual criminality is required, consider the requirement satisfied for all like
categorized and denominated offenses
IV Where dual criminality is required, consider the requirement satisfied, regardless of
category or denomination, as long as the predicate offenses are criminalized in both
jurisdictions
V Repatriate all stolen or ill-gained assets
1. II, IV and V
2. II and IV
3. I, III and V
4. None of the above
Quiz_________________?
-
Answer✅
What is the best step a financial institution can take to reduce its exposure to trade-base
money laundering, specifically trade price manipulation?
1. Nothing. It is nearly impossible to detect and prevent.
2
, 2. Require the customer to transact all of their foreign business with you. Having all of their
foreign trade will better enable you to spot suspicious transactions.
3. Require the customer to provide copies of all customs documents related to each foreign
transaction.
4. Inquire of and require the customer's management to attest to the validity and legality of
all foreign transactions.
Quiz_________________?
1-
Answer✅
A Commission Rogatoire (letter of request) will generally include which of the following?
I The legal provision under which the request is made.
II The information sought.
III The criminal charges in the requesting country.
IV The nature of the request.
1. All of the above
2. I, II and IV
3. II, III and IV
4. I, II and III
Quiz_________________?
1-
Answer✅
A young adult, who is in the country on a student visa, is depositing between $5,000 and
$6,000 each week in cash. Most of the funds are then wired, the same day, to a numbered
account at a small bank in Belize.
3
, As an investigator, what issues might you have with this relationship?
I The funds are being wired to a numbered account.
II The funds are being wired to a small bank in Belize.
III The level of cash being deposited into the account of a young adult.
IV The level of transactions taking place in the account of a foreign student.
V The deposits are all cash and are being wired out of the country the same day.
1. All of the above
2. I, II, and V
3. I, III and IV
4. I, II, III and V
All are suspicious.
With the numbered account, you know nothing about the recipient of the wires.
Belize is a bank secrecy haven.
4
Quiz_________________?
Answer✅
A South American (SA) currency exchanger is aligned with the drug trade there. The drug
cartel has large amounts of cash in the United States it needs back in South America. The
currency exchanger finds local companies that need US dollars to pay US firms for goods
that are exported from the US firms to the SA companies. The exchanger receives payment
in the local currency from the SA companies, then uses the drug dollars in the exchanger's
US dollar account to pay the US firms for the goods ordered by the SA companies.
The US firms then ship their products to the SA companies - none the wiser that they were
actually paid with drug money. The currency exchanger then takes the local currency
received from the SA companies and turns those funds over to the drug cartel.
So, the SA companies get their products from the US, usually at an exchange rate better
than they would have gotten from their banks and likely have no knowledge that they were
involved in money laundering. The US firms have made their sales and they too have no idea
of their involvement. The currency exchanger / money launderer has effectively "moved"
hundreds of thousands of dollars (if not more) from the US to SA and changed the dollars
into the local currency in the process.
This is an example of:
1. Trade Price Manipulation
2. Cuckoo Smurfing
3. Black Market Peso Exchange
4. Hawala
1
, Quiz_________________?
-
Answer✅
According to FATF Recommendations, countries should:
I Prosecute all requests from banks in foreign countries.
II Render mutual legal assistance, notwithstanding the absence of dual criminality.
III Where dual criminality is required, consider the requirement satisfied for all like
categorized and denominated offenses
IV Where dual criminality is required, consider the requirement satisfied, regardless of
category or denomination, as long as the predicate offenses are criminalized in both
jurisdictions
V Repatriate all stolen or ill-gained assets
1. II, IV and V
2. II and IV
3. I, III and V
4. None of the above
Quiz_________________?
-
Answer✅
What is the best step a financial institution can take to reduce its exposure to trade-base
money laundering, specifically trade price manipulation?
1. Nothing. It is nearly impossible to detect and prevent.
2
, 2. Require the customer to transact all of their foreign business with you. Having all of their
foreign trade will better enable you to spot suspicious transactions.
3. Require the customer to provide copies of all customs documents related to each foreign
transaction.
4. Inquire of and require the customer's management to attest to the validity and legality of
all foreign transactions.
Quiz_________________?
1-
Answer✅
A Commission Rogatoire (letter of request) will generally include which of the following?
I The legal provision under which the request is made.
II The information sought.
III The criminal charges in the requesting country.
IV The nature of the request.
1. All of the above
2. I, II and IV
3. II, III and IV
4. I, II and III
Quiz_________________?
1-
Answer✅
A young adult, who is in the country on a student visa, is depositing between $5,000 and
$6,000 each week in cash. Most of the funds are then wired, the same day, to a numbered
account at a small bank in Belize.
3
, As an investigator, what issues might you have with this relationship?
I The funds are being wired to a numbered account.
II The funds are being wired to a small bank in Belize.
III The level of cash being deposited into the account of a young adult.
IV The level of transactions taking place in the account of a foreign student.
V The deposits are all cash and are being wired out of the country the same day.
1. All of the above
2. I, II, and V
3. I, III and IV
4. I, II, III and V
All are suspicious.
With the numbered account, you know nothing about the recipient of the wires.
Belize is a bank secrecy haven.
4
