ACAMS PRACTICE TEST (BOOK) QUESTIONS AND
ANSWERS
Purchasing structured money instruments. - Answers - Which of the following is the
most common method of laundering money through a legal money services business?
Placement, Layering and integration. - Answers - In general, the 3 phases of money
laundering are said to be:
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. -
Answers - Which statement is true?
-Single-premium insurance bonds, redeemed at a discount
-Policyholders who are unconcerned about penalties for early cancellation
-Policyholders who make full use of the "free look" period. - Answers - Which 3 of the
following is an indication of possible money laundering in an insurance industry
scenario?
-Converting illicit drug proceeds from dollars or Euros to Colombian pesos
-Facilitating purchases by Colombian importers of goods manufactured in the United
States or Europe through peso brokers. - Answers - Which 2 activities are typically
associated with the black market peso exchange (BMPE) money laundering system?
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. - Answers -
What is the Right of Reciprocity in the field of in the field of international cooperation
against money laundering?
Allow customers with credit balances to withdraw funds by check in another jurisdiction -
Answers - The greatest risk for money laundering is for casinos that.
PEPs have significantly greater exposure to the politically corrupt funds, including
accepting bribes or misappropriating government funds. - Answers - Which statement is
true regarding the risk of Politically Exposed Persons (PEPs)?
Loan back. - Answers - 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?
The customer asks many questions about the brokerage account, but none of them are
related to investing.
The address of the account holder and the branch where the customer came to open
the account are not close to each other.
That the customer appears unconcerned about the fees. - Answers - A new customer
approaches a bank to open a commercial account. The customer provides an address
for the account located across the city from the branch. When asked by the account
representative if the customer requires any additional banking services, the customer
responds she is also interested in opening a personal investment account. The account
representative refers the customer to their broke-dealer. The customer tells the firm
representative she has never had a brokerage account before and has a few questions
about how an investment account works. The customer asks how deposits can be made
into her account, if there are any reporting requirements, and how to go about moving
balances out of the account using wire transfers. No questions are asked about fees
associated with these transactions. Which three items would be considered suspicious?
To over-or under-invoice the goods. - Answers - International trade in goods and
services can be used as either a cover for money laundering or as the laundering
mechanism itself. What is MOST important for the launderer when engaging in this
method? The ability:
Maintained for a foreign bank that does not have a physical presence in any country. -
Answers - Which of the following statements is true? Correspondent banking is MOST
vulnerable to money laundering when the correspondent account is:
Can be abused by launderers by using the accounts they set up for them for the
placement and layering of funds. - Answers - Which statement is true? Lawyers:
Auditors, estate agents based in the EU. - Answers - The Third EU Money Laundering
Directive of 2005 applies to which of the following firms?
Participating in financial or corporate transactions. - Answers - According to the EU
Directives of 2001, an independent legal professional is obligated to report suspicion of
money laundering in a client relationship when:
USA Patriot Act. - Answers - Which of the followings is the most difficult regulatory
challenge facing a foreign financial institution with a correspondent banking relationship
in the U.S.?
-Protect the safety and soundness of banks
ANSWERS
Purchasing structured money instruments. - Answers - Which of the following is the
most common method of laundering money through a legal money services business?
Placement, Layering and integration. - Answers - In general, the 3 phases of money
laundering are said to be:
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. -
Answers - Which statement is true?
-Single-premium insurance bonds, redeemed at a discount
-Policyholders who are unconcerned about penalties for early cancellation
-Policyholders who make full use of the "free look" period. - Answers - Which 3 of the
following is an indication of possible money laundering in an insurance industry
scenario?
-Converting illicit drug proceeds from dollars or Euros to Colombian pesos
-Facilitating purchases by Colombian importers of goods manufactured in the United
States or Europe through peso brokers. - Answers - Which 2 activities are typically
associated with the black market peso exchange (BMPE) money laundering system?
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. - Answers -
What is the Right of Reciprocity in the field of in the field of international cooperation
against money laundering?
Allow customers with credit balances to withdraw funds by check in another jurisdiction -
Answers - The greatest risk for money laundering is for casinos that.
PEPs have significantly greater exposure to the politically corrupt funds, including
accepting bribes or misappropriating government funds. - Answers - Which statement is
true regarding the risk of Politically Exposed Persons (PEPs)?
Loan back. - Answers - 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?
The customer asks many questions about the brokerage account, but none of them are
related to investing.
The address of the account holder and the branch where the customer came to open
the account are not close to each other.
That the customer appears unconcerned about the fees. - Answers - A new customer
approaches a bank to open a commercial account. The customer provides an address
for the account located across the city from the branch. When asked by the account
representative if the customer requires any additional banking services, the customer
responds she is also interested in opening a personal investment account. The account
representative refers the customer to their broke-dealer. The customer tells the firm
representative she has never had a brokerage account before and has a few questions
about how an investment account works. The customer asks how deposits can be made
into her account, if there are any reporting requirements, and how to go about moving
balances out of the account using wire transfers. No questions are asked about fees
associated with these transactions. Which three items would be considered suspicious?
To over-or under-invoice the goods. - Answers - International trade in goods and
services can be used as either a cover for money laundering or as the laundering
mechanism itself. What is MOST important for the launderer when engaging in this
method? The ability:
Maintained for a foreign bank that does not have a physical presence in any country. -
Answers - Which of the following statements is true? Correspondent banking is MOST
vulnerable to money laundering when the correspondent account is:
Can be abused by launderers by using the accounts they set up for them for the
placement and layering of funds. - Answers - Which statement is true? Lawyers:
Auditors, estate agents based in the EU. - Answers - The Third EU Money Laundering
Directive of 2005 applies to which of the following firms?
Participating in financial or corporate transactions. - Answers - According to the EU
Directives of 2001, an independent legal professional is obligated to report suspicion of
money laundering in a client relationship when:
USA Patriot Act. - Answers - Which of the followings is the most difficult regulatory
challenge facing a foreign financial institution with a correspondent banking relationship
in the U.S.?
-Protect the safety and soundness of banks
