ACAMS QUESTIONS

ACAMS QUESTIONS Which of the following statements is true? A Credit cards are not likely to be used in the layering phase of money laundering because of restrictions in cash payments B Credit cards are effective inst ...

ACAMS QUESTIONS Which of the following statements is true? A Credit cards are not likely to be used in the layering phase of money laundering because of restrictions in cash payments B Credit cards are effective instruments for laundering money because the transactions do not create a paper trail C A launderer can launder money by prepaying his credit card using funds that are already in the banking system, creating a credit balance on his account, and requesting a credit refund D A launderer can use illicit funds that are already in the banking system to pay his credit card bill for goods purchased, which is an example of placement - ✔✔C Why is a Payable Through Account vulnerable to money laundering? A These are master correspondent accounts established at a domestic bank by a foreign bank that allow the customers of the foreign bank to do a wide range of transactions B These are correspondent accounts located in a non-cooperative country or territory C These are nested correspondent accounts at a foreign shell bank with customers with whom the domestic bank did not exercise due diligence D These are master escrow accounts on which a domestic bank generally does not conduct periodic verification - ✔✔A 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 D. Maintained for a foreign private bank that is publicly traded and is a qualified intermediary - ✔✔C Which statement is true? A. Lawyers/attorneys can generally not be used to serve as formation agents to set up trusts, front companies or shell corporations B. Lawyers, accountants, notaries and other similar professionals are called money services providers C. Lawyers can generally not be used to act as a nominee shareholder for another person D. Launderers can abuse gatekeepers by using their accounts for the placement and the layering of funds - ✔✔D Which two of the following activities are typically associated with the Black Market Peso Exchange (BMPE) money laundering system? A. Converting illicit drug proceeds from dollars or Euros to Colombian pesos B. Converting illicit drug proceeds from Colombian pesos to dollars or Euros C. Facilitating purchases by Colombian importers of goods manufactured in the United States or Europe through peso brokers D. Facilitating purchases by European or U.S. importers of goods manufactured in Colombia through peso brokers - ✔✔A C Which statement is true? A. Bust-out schemes are popular in creating large bankruptcy frauds where businesses secure increasing loans in excess of the actual value of the company or property and then run with the money, leaving the lender to foreclose and take a substantial loss B. Cuckoo smurfing is a significant money laundering technique identified by the Financial Action Task Force, where a form of structuring uses nested accounts with shell banks in secrecy havens C. In its revised 40 Recommendations of 2003, the FATF issued for the second time 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 completely anonymous and does not allow for large amounts to be "transported" quickly and easily - ✔✔A What is the definition of a predicate offense? A. Lawful or unlawful activity that involves willful blindness, and if there is an international element to the crime, can lead to a suspicious activity report B. Unlawful activity whose proceeds, if involved in the transaction, can give rise to prosecution for the crime of money laundering C. An interface which is the underlying segment of a suspicious transaction monitoring system D. A specified unlawful activity that is committed through concentration accounts deceiving customers that are not directly related to the account - ✔✔B What are two definitions of willful blindness? A. Deliberate avoidance of knowledge of facts B. Refusing to put glasses on while driving C. Purposeful indifference D. Not being able to see - ✔✔A C What are the three stages of money laundering? A. Payments, cash and spending B. Collecting, distributing and hoarding C. Placement, layering and integration D. Placement, structuring and layering - ✔✔C True or false, the cycle of money laundering is circular? A. True B. False - ✔✔A What are three economic and social costs of money laundering? A. Corruption B. Weakening of financial institutions C. Companies having more limited access to world markets D. Inability to gain access to cash - ✔✔A B C What are two products or services commonly used in money laundering? A. Correspo