ACAMS Practice Set – 1 Test With Correct Questions And Answers

ACAMS Practice Set – 1 Test With Correct Questions And Answers

. Which two 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
. 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 other
financial institutions can share information about these customers with the 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.
3 - D
The greatest risk for money laundering is for casinos that
A. Provide their customers 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
8. Which statement is true regarding the risk of Politically Exposed Persons (PEPs)?
A. PEPs provide access to third parties on whom the financial institution 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 risks to an institution due to their political standing;
rather, PEPs increase the prestige of an institution. - B
Dirty money, derived from criminal activities of Belgian Criminal A, is sent to a foreign bank
account of Corporation B. Then in Belgium, a new investment Company C is incorporated.
Criminal A is appointed as a director of Company C. Company C borrows money from the
foreign Company B and buys real estate in Belgium. The real estate is rented to third
parties. Director (Criminal) A also rents an apartment in the building. With the funds
generated by the rent, Company C pays off the loan to Corporation B, and the salary of
Director A. Criminal A now converted his dirty money in legal funds.
This laundering method is commonly referred to as what?
A. Offsetting real estate transactions.
B. Loan back.
C. Cuckoo smurfing.
D. Loan manipulation - B
. Which of the following is the most common method of laundering money through a legal
money services business?
A. Purchasing structured money instruments.
B. Smuggling bulk-cash.
C. Transferring funds through Payable Through Accounts (PTAs).
D. Exchanging Colombian pesos on the black market. - A
. In general, the three phases of money laundering are said to be: Placement:
A. Structuring and manipulation.
B. Layering and integration.
C. Layering and smurfing.
D. Integration and infiltration. - B
. 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 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 completely
anonymous and does not allow for large amounts to be "transported" quickly and easily.
2 - A