ACAMS practice exam 2020
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1. Which of the following is the most common method of laundering money
through a legal money services business?
a. exchanging currency and remitting money
b. smuggling bulk cash
c. transferring funds through payable through accounts (PTAs)
d. exchanging Colombian pesos on the black market: a. exchanging currency and remitting
money
2. In general, the three phases of money launder are said to be placement and:
a. structuring and manipulation
b. layering and integration
c. layering and smurfing
d. integration and infiltration: b. layering and integration
3. Which statement is true?
a. Systemic weaknesses in free trade zones include inadequate AML/CFT safe-
guards, minimal oversight by local authorities and weak procedures to inspect
goods.
B. Cuckoo smurfing is a significant money laundering technique identified by
the Financial Action Task Force, wherein a form of structuring uses nested
accounts with shell banks in secrecy havens.
C. In its 40 Recommendations, the FATF issued a list of designated categories
of offense that asserts crimes for a money laundering prosecution.
D. E-cash is not attractive to the money launderer because it cannot be com-
pletely anonymous and does not allow for large amounts to be transported
quickly and easily.: a. Systemic weaknesses in free trade zones include inadequate AML/CFT safeguards,
minimal oversight by local authorities and weak procedures to inspect goods.
4. Which three of the following is an indication of possible money laundering in
an insurance industry scenario?
a. insurance products sold through intermediaries, agents or brokers
b. single-premium insurance bonds, redeemed at a discount
c. policyholders who are unconcerned about penalties for early cancellation
d. policy holders who redeem the policy within the free look period: b. single-pre-
mium insurance bonds, redeemed at a discount
, ACAMS practice exam 2020
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c. policyholders who are unconcerned about penalties for early cancellation
d. policy holders who redeem the policy within the free look period
5. which two activities are typically associated with the black market peso ex-
change (BMPE) money laundering system?
a. converting illicit drug proceeds from dollars or euros to Columbian pesos
b. converting illicit drug proceeds from Colombian pesos to dollar or euros
c. facilitating purchases by Colombian importers of goods manufactured in the
united states or Europe through peso brokers
d. facilitating purchase by European or U.S. importers of goods manufactured
in Colombia through peso brokers: a. converting illicit drug proceeds from dollars or euros to
Columbian pesos
c. facilitating purchases by Colombian importers of goods manufactured in the united states or Europe through peso
brokers
6. what is the right of reciprocity in the field of international cooperation against
money laundering?
a. the legal principle that financial institutions that have referred customers
to the other financial institutions can share information about these customer
with other institutions
b. A rule of the Basel Committee allowing properly regulated financial institutes
of another member state of the Basel Committee to do business without
additional supervision to the degree that the
other state grants the same right
C. The right of each FATF member country to delegate prosecution of a case of
money laundering to another member that is already investigating the same
case
D. 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: D. 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
, ACAMS practice exam 2020
Study online at https://quizlet.com/_hu5vkf
7. the greatest risk for money laundering is for casinos that :
a. provide their customer with a wide array of gambling services
b. operate in a non-Egmont member country
c. allow customers with credit balances to withdraw funds by check in another
jurisdiction
d. only send suspicious transaction reports to the financial intelligence unit of
the country it operates in: c. allow customers with credit balances to withdraw funds by check in another
jurisdiction
8. which statement is true regarding the risk of politically exposed person
(PEPs)?
a. PEPs provide access to third parties on whom the FI has not conducted
sufficient due diligence
b. PEPs have significantly greater exposure to the politically corrupt funds,
including accepting bribes or misappropriating government funds
c. PEPs are foreign customers who inherently present additional risk as they
are engaged in cross-border transactions
d. PEPs generally do not pose enhanced risk to an institution due to their
political standing; rather, PEPs increase the prestige of an institution.: b. PEPs
have significantly greater exposure to the politically corrupt funds, including accepting bribes or misappropriating
government funds
9. In 2014, the Wolfsberg Group published its Anti-Money Laundering Principles
for Correspondent Banking. Which three of the following elements are recom-
mended to be included in the due diligence of a correspondent banking client?
A. The geographic risk
B. The ownership and management structure
C. The résumé of the compliance officer
D. The customer base: The geographic risk
B. The ownership and management structure
D. The customer base
, ACAMS practice exam 2020
Study online at https://quizlet.com/_hu5vkf
10. 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
that she is also interested in opening a personal investment account. The
account representative refers the customer to the
broker-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?
A. The customer asks many questions about the brokerage account but: A. The
customer asks many questions about the brokerage account but none of them is related to investing.
C. The address of the account holder and the branch where the customer came to open the account are not close to
each other.
D. The customer appears unconcerned about the fees.
11. Trade-based money laundering requires the ability to:
A. over- or under-invoice the goods.
B. sell the imported goods for as little as possible.
C. use goods that do not need to be declared.
D. avoid the use of high-value assets such as luxury cars or boats.: A. over- or
under-invoice the goods.
12. Which of the following statements is true? Correspondent banking is most
vulnerable to money laundering when the correspondent account is
A. maintained for foreign financial institutions that are banks.
B. not used to provide services directly to third parties.
C. maintained for a foreign bank that does not have a physical presence in any
country.
Study online at https://quizlet.com/_hu5vkf
1. Which of the following is the most common method of laundering money
through a legal money services business?
a. exchanging currency and remitting money
b. smuggling bulk cash
c. transferring funds through payable through accounts (PTAs)
d. exchanging Colombian pesos on the black market: a. exchanging currency and remitting
money
2. In general, the three phases of money launder are said to be placement and:
a. structuring and manipulation
b. layering and integration
c. layering and smurfing
d. integration and infiltration: b. layering and integration
3. Which statement is true?
a. Systemic weaknesses in free trade zones include inadequate AML/CFT safe-
guards, minimal oversight by local authorities and weak procedures to inspect
goods.
B. Cuckoo smurfing is a significant money laundering technique identified by
the Financial Action Task Force, wherein a form of structuring uses nested
accounts with shell banks in secrecy havens.
C. In its 40 Recommendations, the FATF issued a list of designated categories
of offense that asserts crimes for a money laundering prosecution.
D. E-cash is not attractive to the money launderer because it cannot be com-
pletely anonymous and does not allow for large amounts to be transported
quickly and easily.: a. Systemic weaknesses in free trade zones include inadequate AML/CFT safeguards,
minimal oversight by local authorities and weak procedures to inspect goods.
4. Which three of the following is an indication of possible money laundering in
an insurance industry scenario?
a. insurance products sold through intermediaries, agents or brokers
b. single-premium insurance bonds, redeemed at a discount
c. policyholders who are unconcerned about penalties for early cancellation
d. policy holders who redeem the policy within the free look period: b. single-pre-
mium insurance bonds, redeemed at a discount
, ACAMS practice exam 2020
Study online at https://quizlet.com/_hu5vkf
c. policyholders who are unconcerned about penalties for early cancellation
d. policy holders who redeem the policy within the free look period
5. which two activities are typically associated with the black market peso ex-
change (BMPE) money laundering system?
a. converting illicit drug proceeds from dollars or euros to Columbian pesos
b. converting illicit drug proceeds from Colombian pesos to dollar or euros
c. facilitating purchases by Colombian importers of goods manufactured in the
united states or Europe through peso brokers
d. facilitating purchase by European or U.S. importers of goods manufactured
in Colombia through peso brokers: a. converting illicit drug proceeds from dollars or euros to
Columbian pesos
c. facilitating purchases by Colombian importers of goods manufactured in the united states or Europe through peso
brokers
6. what is the right of reciprocity in the field of international cooperation against
money laundering?
a. the legal principle that financial institutions that have referred customers
to the other financial institutions can share information about these customer
with other institutions
b. A rule of the Basel Committee allowing properly regulated financial institutes
of another member state of the Basel Committee to do business without
additional supervision to the degree that the
other state grants the same right
C. The right of each FATF member country to delegate prosecution of a case of
money laundering to another member that is already investigating the same
case
D. 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: D. 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
, ACAMS practice exam 2020
Study online at https://quizlet.com/_hu5vkf
7. the greatest risk for money laundering is for casinos that :
a. provide their customer with a wide array of gambling services
b. operate in a non-Egmont member country
c. allow customers with credit balances to withdraw funds by check in another
jurisdiction
d. only send suspicious transaction reports to the financial intelligence unit of
the country it operates in: c. allow customers with credit balances to withdraw funds by check in another
jurisdiction
8. which statement is true regarding the risk of politically exposed person
(PEPs)?
a. PEPs provide access to third parties on whom the FI has not conducted
sufficient due diligence
b. PEPs have significantly greater exposure to the politically corrupt funds,
including accepting bribes or misappropriating government funds
c. PEPs are foreign customers who inherently present additional risk as they
are engaged in cross-border transactions
d. PEPs generally do not pose enhanced risk to an institution due to their
political standing; rather, PEPs increase the prestige of an institution.: b. PEPs
have significantly greater exposure to the politically corrupt funds, including accepting bribes or misappropriating
government funds
9. In 2014, the Wolfsberg Group published its Anti-Money Laundering Principles
for Correspondent Banking. Which three of the following elements are recom-
mended to be included in the due diligence of a correspondent banking client?
A. The geographic risk
B. The ownership and management structure
C. The résumé of the compliance officer
D. The customer base: The geographic risk
B. The ownership and management structure
D. The customer base
, ACAMS practice exam 2020
Study online at https://quizlet.com/_hu5vkf
10. 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
that she is also interested in opening a personal investment account. The
account representative refers the customer to the
broker-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?
A. The customer asks many questions about the brokerage account but: A. The
customer asks many questions about the brokerage account but none of them is related to investing.
C. The address of the account holder and the branch where the customer came to open the account are not close to
each other.
D. The customer appears unconcerned about the fees.
11. Trade-based money laundering requires the ability to:
A. over- or under-invoice the goods.
B. sell the imported goods for as little as possible.
C. use goods that do not need to be declared.
D. avoid the use of high-value assets such as luxury cars or boats.: A. over- or
under-invoice the goods.
12. Which of the following statements is true? Correspondent banking is most
vulnerable to money laundering when the correspondent account is
A. maintained for foreign financial institutions that are banks.
B. not used to provide services directly to third parties.
C. maintained for a foreign bank that does not have a physical presence in any
country.
