ACFCS Practice Test questions with |\ |\ |\ |\ |\
answers
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
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔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 ANSWERS ✔✔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 ANSWERS ✔✔D) The
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
payments are in varying amounts and their purpose is |\ |\ |\ |\ |\ |\ |\ |\ |\
always the same in the SWIFT messaging.
|\ |\ |\ |\ |\ |\
Uniform Solutions is a wholesale clothing maker and
|\ |\ |\ |\ |\ |\ |\ |\
retailer that produces and sells uniforms to government
|\ |\ |\ |\ |\ |\ |\ |\
agencies and large institutions. Recently, the company
|\ |\ |\ |\ |\ |\ |\
has heard that Country Z is looking for a new supplier for
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
answers
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
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔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 ANSWERS ✔✔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 ANSWERS ✔✔D) The
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
payments are in varying amounts and their purpose is |\ |\ |\ |\ |\ |\ |\ |\ |\
always the same in the SWIFT messaging.
|\ |\ |\ |\ |\ |\
Uniform Solutions is a wholesale clothing maker and
|\ |\ |\ |\ |\ |\ |\ |\
retailer that produces and sells uniforms to government
|\ |\ |\ |\ |\ |\ |\ |\
agencies and large institutions. Recently, the company
|\ |\ |\ |\ |\ |\ |\
has heard that Country Z is looking for a new supplier for
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
