CERTIFIED AML AND FRAUD PROFESSIONAL
EXAM 2026 PROFESSIONAL PREPARATION
WORKBOOK
◉ Extortion. Answer: Acquiring through force or fear.
◉ Current Ratio. Answer: Current assets divided by current
liabilities; Embezzlement decreases ratio; Liability concealment
increases ratio.
◉ Scooter Scam. Answer: Billing for low quality/unnecessary
products.
◉ Sliding. Answer: Adding insurance coverage without notifying
client; insurer makes more money, client makes no claims.
◉ Debits. Answer: Increases asset/expense accounts; On the left
side; Decreases liabilities, revenues, owner's equity; DC ADE LER
(DebitCredit/ AssestsDrawExpenses/ LiabilityEquityRevenue)
◉ Credits. Answer: Decreases asset/expense accounts; On the right
side; Increases liabilities, revenues, owner's equity; DC ADE LER
(DebitCredit/ AssestsDrawExpenses/ LiabilityEquityRevenue)
,◉ Verifier. Answer: Reviews deals/records customer consent
(telemarketing); scammer verifiers lie
◉ Bid Splitting Scheme. Answer: When a large project is broken into
small projects; Designed to avoid competitive method requirements.
◉ Positive Pay. Answer: When banks and companies coordinate to
detect fraudulent checks.
◉ Income Smoothing. Answer: Reporting revenues and expenses
under the wrong periods.
◉ Turnkey. Answer: Provides telemarketing scammers with
collateral (laundering, merchandise, phone lists, etc.)
◉ Debt to Equity Ratio. Answer: Total Liabilities/Total Equity
◉ The largest amount of insurance fraud occurs in the ______________
industry. Answer: Health Care
◉ The 6 types of healthcare fraud. Answer: (1) Falsified
prescriptions (2) Excessive supplies (3) Failure to deliver/billing
,before delivering (4) Excessive billing (5) Billing uninsured items (6)
Scooter scams
◉ In construction, the purpose of developer overhead is to ....
Answer: supply the developer with operating capital.
◉ Organization Crime. Answer: Crime committed by groups
◉ Occupational Crime. Answer: Crime committed by individuals,
professionals, officials
◉ Corruption (3 Types). Answer: Bribes (giving/taking), aiding,
abetting
◉ Does advertising influence economic crimes?. Answer: Yes, no one
has to settle for second best (See "Crimes of the Middle Class" book);
most defendants are male w/ moderate social status.
◉ Overstating Revenues. Answer: When a launderer records more
income than actually generated.
◉ Spoliation of Evidence. Answer: Destruction of evidence
, ◉ The 3 stages of money laundering. Answer: Placement, Layering,
Integration
◉ Placement. Answer: 1st stage of money laundering; Illegal profits
are placed into a financial system (Place, Layer, Integrate)
◉ Layering. Answer: 2nd stage of money laundering; Illegal profits
are transferred to different accounts/ businesses/ currencies to
obscure detection (Place, Layer, Integrate)
◉ Integration. Answer: 3rd state of money laundering; Illegal profits
are reintroduced as legitimate profits (Place, Layer, Integrate)
◉ Rule 703 of the U.S. Federal Rules of Evidence states that ....
Answer: An expert may base an opinion on (1) Firsthand
observations (2) Facts, data, or opinions presented at trial (3) Facts,
data or opinions conveyed outside of court (4) an expert may testify
on facts disclosed before OR at the hearing
◉ Edwin H. Sutherland coined the term .... Answer: White-collar
crime
◉ T/F? The risk of missing management fraud is greater than the
risk of missing employee fraud.. Answer: True, because managers
have more power than employees.
EXAM 2026 PROFESSIONAL PREPARATION
WORKBOOK
◉ Extortion. Answer: Acquiring through force or fear.
◉ Current Ratio. Answer: Current assets divided by current
liabilities; Embezzlement decreases ratio; Liability concealment
increases ratio.
◉ Scooter Scam. Answer: Billing for low quality/unnecessary
products.
◉ Sliding. Answer: Adding insurance coverage without notifying
client; insurer makes more money, client makes no claims.
◉ Debits. Answer: Increases asset/expense accounts; On the left
side; Decreases liabilities, revenues, owner's equity; DC ADE LER
(DebitCredit/ AssestsDrawExpenses/ LiabilityEquityRevenue)
◉ Credits. Answer: Decreases asset/expense accounts; On the right
side; Increases liabilities, revenues, owner's equity; DC ADE LER
(DebitCredit/ AssestsDrawExpenses/ LiabilityEquityRevenue)
,◉ Verifier. Answer: Reviews deals/records customer consent
(telemarketing); scammer verifiers lie
◉ Bid Splitting Scheme. Answer: When a large project is broken into
small projects; Designed to avoid competitive method requirements.
◉ Positive Pay. Answer: When banks and companies coordinate to
detect fraudulent checks.
◉ Income Smoothing. Answer: Reporting revenues and expenses
under the wrong periods.
◉ Turnkey. Answer: Provides telemarketing scammers with
collateral (laundering, merchandise, phone lists, etc.)
◉ Debt to Equity Ratio. Answer: Total Liabilities/Total Equity
◉ The largest amount of insurance fraud occurs in the ______________
industry. Answer: Health Care
◉ The 6 types of healthcare fraud. Answer: (1) Falsified
prescriptions (2) Excessive supplies (3) Failure to deliver/billing
,before delivering (4) Excessive billing (5) Billing uninsured items (6)
Scooter scams
◉ In construction, the purpose of developer overhead is to ....
Answer: supply the developer with operating capital.
◉ Organization Crime. Answer: Crime committed by groups
◉ Occupational Crime. Answer: Crime committed by individuals,
professionals, officials
◉ Corruption (3 Types). Answer: Bribes (giving/taking), aiding,
abetting
◉ Does advertising influence economic crimes?. Answer: Yes, no one
has to settle for second best (See "Crimes of the Middle Class" book);
most defendants are male w/ moderate social status.
◉ Overstating Revenues. Answer: When a launderer records more
income than actually generated.
◉ Spoliation of Evidence. Answer: Destruction of evidence
, ◉ The 3 stages of money laundering. Answer: Placement, Layering,
Integration
◉ Placement. Answer: 1st stage of money laundering; Illegal profits
are placed into a financial system (Place, Layer, Integrate)
◉ Layering. Answer: 2nd stage of money laundering; Illegal profits
are transferred to different accounts/ businesses/ currencies to
obscure detection (Place, Layer, Integrate)
◉ Integration. Answer: 3rd state of money laundering; Illegal profits
are reintroduced as legitimate profits (Place, Layer, Integrate)
◉ Rule 703 of the U.S. Federal Rules of Evidence states that ....
Answer: An expert may base an opinion on (1) Firsthand
observations (2) Facts, data, or opinions presented at trial (3) Facts,
data or opinions conveyed outside of court (4) an expert may testify
on facts disclosed before OR at the hearing
◉ Edwin H. Sutherland coined the term .... Answer: White-collar
crime
◉ T/F? The risk of missing management fraud is greater than the
risk of missing employee fraud.. Answer: True, because managers
have more power than employees.
