AML Exam (CE) Questions and answers Rated A+ 2025/2026

AML Exam (CE) Questions and answers
Rated A+ 2025/2026
1. The information an insurance agent must collect for customer identification purposes depends
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on
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a. the amount of money the customer is worth.
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b. The amount of money the customer spends.
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c. whether the insurance product the customer is purchasing at a low or high risk for money
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laundering.
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d. the size and resources of the insurance company. - Correct Answers c. Whether the insurance
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product under consideration is at a low or high risk for money laundering
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Il` 2. When Tom Jensin mixes illicit and legal funds and then uses the money to purchase a new car,
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Il` he is practicing.
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a. rebating
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b. diversification
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c. integration
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d. smurfing - Correct Answers c. integration
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Il` 3. When a client gives an insurance agent $14,000 in cash for an insurance transaction, the agent
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Il` is obligated to
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a. consult with a lawyer
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b. file a CTR
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c. call the police
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d. do nothing - Correct Answers b. file a CTR
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Il` 4. Federal staff have surveyed the ABC insurance company and determined that it is in compliance
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Il` with the USA PATRIOT act of 2001 because it has all of the following Except.
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, a. a customer identification and verification program
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b. a suspicious activity monitoring and reporting system
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c. a fire safety committee
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d. an employee training program. - Correct Answers d. an employee training program
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Il` 5. What has Marcela Benson done when she transfer the benefit of her insurance policy to an
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Il` apparently unrelated third party? Il` Il` Il` Il`




a. performed an unlawful transfer
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b. performed a transfer by fault
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c. performed a secondary transfer
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d. raised a red flag for suspicious activity - Correct Answers d.
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Il` 6. Tony demarco successfully laundered $75,000 of drug money, In doing so, he went through
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Il` each of the following processes EXCEPT
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a. placement
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b. replacement
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c. layering
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d. integration - Correct Answers b
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Il` 7. The ABC insurance company sells all of the following products. which of these products must be
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Il` covered in the insurance company's AML training program?
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a. term life insurance
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b. group life insurance
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c. structured settlements
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d. Annuities - Correct Answers C
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