ACFCS Practice Test Question and
answers verified to pass
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 answer ✔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 answer ✔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 answer ✔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 its
answers verified to pass
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 answer ✔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 answer ✔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 answer ✔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 its
