ACAMS Practice Questions and Correct Detailed
Answers Already Graded A+|Newest 2026
1. Trade-based money laundering requires the ability to
A. over- or under-invoice the goods.
B. sell the imported goods for as little as possible.
C. use goods that do not need to be declared.
D. avoid the use of high-value assets such as luxury cars or boats. - CORRECT
ANSWER-A. over- or under-invoice the goods.
2. 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. - CORRECT ANSWER-C. maintained for a foreign bank that does
not have a physical presence in any country.
,3. Which statement is true?
A. Lawyers in FATF member countries generally cannot be used to serve as
formation agents to set up trusts, front companies or shell companies.
B. Lawyers and similar professional gatekeepers are called money services
businesses.
C. Lawyers generally cannot be used to act as nominee shareholders for a
beneficial owner.
D. Lawyers can be abused by launderers by using the accounts they set up for
them for the placement and layering of funds. - CORRECT ANSWER-D. Lawyers
can be abused by launderers by using the accounts they set up for them for the
placement and layering of funds.
4. Which three of the following statements are true in respect to the Fourth EU
Anti-Money Laundering Directive?
A. Member countries can decide when and if they incorporate it into their local
laws.
B. It repeals and replaces the Third EU Directive on Anti-Money Laundering.
C. Each member country must hold beneficial ownership information in a central
registry and it must be made available to competent authorities.
D. The definition of a PEP is expanded to include domestic persons. - CORRECT
ANSWER-B. It repeals and replaces the Third EU Directive on Anti-Money
Laundering.
,C. Each member country must hold beneficial ownership information in a central
registry and it must be made available to competent authorities.
D. The definition of a PEP is expanded to include domestic persons.
5. According to the EU Directives, an independent legal professional is obligated
to report suspicion of money laundering in a client relationship when
A. representing a client in a legal matter.
B. ascertaining the legal position for a client.
C. participating in financial or corporate transactions.
D. obtaining information associated with a judicial proceeding. - CORRECT
ANSWER-C. participating in financial or corporate transactions.
6. Which of the following is the most difficult regulatory challenge facing a foreign
financial institution with a correspondent banking relationship in the U.S.?
A. USA PATRIOT Act
B. Basel Due Diligence Principles for Banks
C. FATF Guidance on Terrorist Financing
D. UN Security Council Resolution on Correspondent Banking - CORRECT
ANSWER-A. USA PATRIOT Act
, 7. Which were the Basel Committee's two main motivations to encourage strong
know your customer programs in its paper Customer Due Diligence for Banks?
(Choose two)
A. Mirror FATF's KYC recommendations.
B. Meet European Union guidelines.
C. Protect the safety and soundness of banks.
D. Protect the integrity of banking systems. - CORRECT ANSWER-C. Protect the
safety and soundness of banks.
D. Protect the integrity of banking systems.
8. 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 that 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 - CORRECT
ANSWER-B. Unlawful activity whose proceeds, if involved in the transaction, can
give rise to prosecution for the crime of money laundering
Answers Already Graded A+|Newest 2026
1. Trade-based money laundering requires the ability to
A. over- or under-invoice the goods.
B. sell the imported goods for as little as possible.
C. use goods that do not need to be declared.
D. avoid the use of high-value assets such as luxury cars or boats. - CORRECT
ANSWER-A. over- or under-invoice the goods.
2. 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. - CORRECT ANSWER-C. maintained for a foreign bank that does
not have a physical presence in any country.
,3. Which statement is true?
A. Lawyers in FATF member countries generally cannot be used to serve as
formation agents to set up trusts, front companies or shell companies.
B. Lawyers and similar professional gatekeepers are called money services
businesses.
C. Lawyers generally cannot be used to act as nominee shareholders for a
beneficial owner.
D. Lawyers can be abused by launderers by using the accounts they set up for
them for the placement and layering of funds. - CORRECT ANSWER-D. Lawyers
can be abused by launderers by using the accounts they set up for them for the
placement and layering of funds.
4. Which three of the following statements are true in respect to the Fourth EU
Anti-Money Laundering Directive?
A. Member countries can decide when and if they incorporate it into their local
laws.
B. It repeals and replaces the Third EU Directive on Anti-Money Laundering.
C. Each member country must hold beneficial ownership information in a central
registry and it must be made available to competent authorities.
D. The definition of a PEP is expanded to include domestic persons. - CORRECT
ANSWER-B. It repeals and replaces the Third EU Directive on Anti-Money
Laundering.
,C. Each member country must hold beneficial ownership information in a central
registry and it must be made available to competent authorities.
D. The definition of a PEP is expanded to include domestic persons.
5. According to the EU Directives, an independent legal professional is obligated
to report suspicion of money laundering in a client relationship when
A. representing a client in a legal matter.
B. ascertaining the legal position for a client.
C. participating in financial or corporate transactions.
D. obtaining information associated with a judicial proceeding. - CORRECT
ANSWER-C. participating in financial or corporate transactions.
6. Which of the following is the most difficult regulatory challenge facing a foreign
financial institution with a correspondent banking relationship in the U.S.?
A. USA PATRIOT Act
B. Basel Due Diligence Principles for Banks
C. FATF Guidance on Terrorist Financing
D. UN Security Council Resolution on Correspondent Banking - CORRECT
ANSWER-A. USA PATRIOT Act
, 7. Which were the Basel Committee's two main motivations to encourage strong
know your customer programs in its paper Customer Due Diligence for Banks?
(Choose two)
A. Mirror FATF's KYC recommendations.
B. Meet European Union guidelines.
C. Protect the safety and soundness of banks.
D. Protect the integrity of banking systems. - CORRECT ANSWER-C. Protect the
safety and soundness of banks.
D. Protect the integrity of banking systems.
8. 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 that 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 - CORRECT
ANSWER-B. Unlawful activity whose proceeds, if involved in the transaction, can
give rise to prosecution for the crime of money laundering
