ACFCS Practice Test Questions
With Correct 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 |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 |military |uniforms. |The |country |has |a |long |history |of |
governmental |corruption. |Uniform |Solutions |is |eager |to |secure |the |contract |but |does |not |have
|many |connections |in |Country |Z. |A |company |manager |proposes |to |hire |a |group |of |sales |agents
|in |Country |Z |to |help |make |contacts |and |negotiate |with |government |officials. |You |have |been |
asked |to |review |the |business |arrangement |with |the |sales |agents |before |a |contract |is |signed |to
With Correct 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 |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 |military |uniforms. |The |country |has |a |long |history |of |
governmental |corruption. |Uniform |Solutions |is |eager |to |secure |the |contract |but |does |not |have
|many |connections |in |Country |Z. |A |company |manager |proposes |to |hire |a |group |of |sales |agents
|in |Country |Z |to |help |make |contacts |and |negotiate |with |government |officials. |You |have |been |
asked |to |review |the |business |arrangement |with |the |sales |agents |before |a |contract |is |signed |to
