ACAMS PRACTICE EXAM QUESTIONS WITH COMPLETE
SOLUTIONS
1) The tactic in which individuals make multiple deposits in small quantities to avoid
detection is called:
A) Paralleling.
B) Integration.
C) Investing.
D) Structuring. -- Correct Answer ✔✔ D
2) In which case might a Suspicious Transaction Report NOT be necessary?
A) A customer who deposits money of suspicious origins and
refuses to answer questions from the financial institution's staff.
B) A customer who tries to move money that is suspected of being
derived from criminal activity.
C) A customer who owns a large supermarket and deposits large
amounts of cash several times a day.
D) A customer whose account is showing transaction activities
which are beyond his known financial capability. -- Correct
Answer ✔✔ C
,3) As part of their role in fighting money laundering, financial institutions should:
A) Designate a compliance officer.
B) Depend solely on The State's staff for combating money
laundering.
C) Refuse small cash deposits under the reporting threshold.
D) Not open accounts for people from high risk jurisdictions. --
Correct Answer ✔✔ A
4) What could happen to compliance officers if they do not comply with the anti-
money laundering laws and regulations?
A) Their employers could face reputation damage, but the
employee is immune from penalty.
B) Loss of job, prison penalties and fines, negative reputation to
their employer.
C) Nothing. Only the financial institution's legal counsel will be
responsible for complying with laws.
D) Nothing. Only the staff directly handling transactions have to
worry. -- Correct Answer ✔✔ B
5) What is willful blindness defined as?
A) Failing to le a Suspicious Transaction Report for dealing with
companies or financial institutions from offshore tax havens.
B) Not following customer identification procedures as set out in
the institution's procedures.
C) Deliberate avoidance of knowledge of the facts or ignoring
obvious money laundering red flags.
D) Deliberate avoidance of a customer based on the assumption
that his or her behavior suggested a potential threat as money
launderer and/or terrorist. -- Correct Answer ✔✔ C
6) In anti-money laundering terminology a "red flag" is:
A) A warning sign used to bring attention to potentially suspicious,
risky transactions or activities.
B) A general banking term used once the balance is negative /
overdue.
, C) The standard ag of countries not cooperative in fighting money
laundering and terrorist financing.
D) An indicator that a customer is listed on an economic sanctions
list. -- Correct Answer ✔✔ A
7) The Reporting Officer of a financial institution should:
A) Report everything that comes his way from anyone in the
organization.
B) Report everything that comes his way from senior management
or Board of Directors.
C) Review available information related to the customer,
transactions, pro le, history and le a Suspicious Transaction
Report for only those customers where a suspicion of money
laundering exists.
D) Report only what the Reporting Officer’s superior agrees should
be reported. -- Correct Answer ✔✔ C
8) 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 an audit 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. -- Correct Answer ✔✔ C
9) Why is a Payable Through Account vulnerable to money laundering?
A) These are master correspondent accounts 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. -- Correct
Answer ✔✔ A
10) What is the reasoning behind implementing a "risk-based anti-money laundering
approach"?
A) It will keep the regulators focused on money laundering
controls in sectors beyond banks.
B) Institutions can best use their limited resources to focus on
matters where the money laundering risks are highest.
C) A quantitative approach will generate better results than a
qualitative approach.
D) It allows the institution to focus on selling products that have a
better return on investment. -- Correct Answer ✔✔ B
11) According to the FATF 40 Recommendations, "designated non- financial
businesses and professions" include:
A) Casinos, real estate agents and dealers in precious stones.
B) Money service businesses, gatekeepers, and issuers of electronic
money.
C) Dealers in precious metals, lawyers, commodity futures traders.
D) Life insurance companies, real estate agents and notaries. --
Correct Answer ✔✔ A
12) According to the FATF 40 Recommendations, the threshold for identifying
occasional customers at financial institutions is:
A) EURO/US$ 5,000.
B) EURO/US$ 10,000.
C) EURO/US$ 15,000.
D) EURO/US$ 20,000. -- Correct Answer ✔✔ C
SOLUTIONS
1) The tactic in which individuals make multiple deposits in small quantities to avoid
detection is called:
A) Paralleling.
B) Integration.
C) Investing.
D) Structuring. -- Correct Answer ✔✔ D
2) In which case might a Suspicious Transaction Report NOT be necessary?
A) A customer who deposits money of suspicious origins and
refuses to answer questions from the financial institution's staff.
B) A customer who tries to move money that is suspected of being
derived from criminal activity.
C) A customer who owns a large supermarket and deposits large
amounts of cash several times a day.
D) A customer whose account is showing transaction activities
which are beyond his known financial capability. -- Correct
Answer ✔✔ C
,3) As part of their role in fighting money laundering, financial institutions should:
A) Designate a compliance officer.
B) Depend solely on The State's staff for combating money
laundering.
C) Refuse small cash deposits under the reporting threshold.
D) Not open accounts for people from high risk jurisdictions. --
Correct Answer ✔✔ A
4) What could happen to compliance officers if they do not comply with the anti-
money laundering laws and regulations?
A) Their employers could face reputation damage, but the
employee is immune from penalty.
B) Loss of job, prison penalties and fines, negative reputation to
their employer.
C) Nothing. Only the financial institution's legal counsel will be
responsible for complying with laws.
D) Nothing. Only the staff directly handling transactions have to
worry. -- Correct Answer ✔✔ B
5) What is willful blindness defined as?
A) Failing to le a Suspicious Transaction Report for dealing with
companies or financial institutions from offshore tax havens.
B) Not following customer identification procedures as set out in
the institution's procedures.
C) Deliberate avoidance of knowledge of the facts or ignoring
obvious money laundering red flags.
D) Deliberate avoidance of a customer based on the assumption
that his or her behavior suggested a potential threat as money
launderer and/or terrorist. -- Correct Answer ✔✔ C
6) In anti-money laundering terminology a "red flag" is:
A) A warning sign used to bring attention to potentially suspicious,
risky transactions or activities.
B) A general banking term used once the balance is negative /
overdue.
, C) The standard ag of countries not cooperative in fighting money
laundering and terrorist financing.
D) An indicator that a customer is listed on an economic sanctions
list. -- Correct Answer ✔✔ A
7) The Reporting Officer of a financial institution should:
A) Report everything that comes his way from anyone in the
organization.
B) Report everything that comes his way from senior management
or Board of Directors.
C) Review available information related to the customer,
transactions, pro le, history and le a Suspicious Transaction
Report for only those customers where a suspicion of money
laundering exists.
D) Report only what the Reporting Officer’s superior agrees should
be reported. -- Correct Answer ✔✔ C
8) 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 an audit 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. -- Correct Answer ✔✔ C
9) Why is a Payable Through Account vulnerable to money laundering?
A) These are master correspondent accounts 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. -- Correct
Answer ✔✔ A
10) What is the reasoning behind implementing a "risk-based anti-money laundering
approach"?
A) It will keep the regulators focused on money laundering
controls in sectors beyond banks.
B) Institutions can best use their limited resources to focus on
matters where the money laundering risks are highest.
C) A quantitative approach will generate better results than a
qualitative approach.
D) It allows the institution to focus on selling products that have a
better return on investment. -- Correct Answer ✔✔ B
11) According to the FATF 40 Recommendations, "designated non- financial
businesses and professions" include:
A) Casinos, real estate agents and dealers in precious stones.
B) Money service businesses, gatekeepers, and issuers of electronic
money.
C) Dealers in precious metals, lawyers, commodity futures traders.
D) Life insurance companies, real estate agents and notaries. --
Correct Answer ✔✔ A
12) According to the FATF 40 Recommendations, the threshold for identifying
occasional customers at financial institutions is:
A) EURO/US$ 5,000.
B) EURO/US$ 10,000.
C) EURO/US$ 15,000.
D) EURO/US$ 20,000. -- Correct Answer ✔✔ C
