ACFCS Practice Test Questions And
Answers Rated A+.
Your bank has recently received an online application for a new business account from
a company named Integral Operations, LLC. By reviewing the operating agreement and
other documents included in the application, you determine that Integral is incorporated
in the U.S. State of Wyoming. A review of the Wyoming corporate registry online shows
that Integral was formed 10 years ago. An initial internet search finds no company
website, and no further information on the company. The registered agent contact
information and address on the company's most recent annual filing is for Biz
Management Solutions, a corporate services provider. Concerned that ACE Operations
appears to be a shelf corporation, you are conducting further due diligence on the
company's ownership structure. Which is the most appropriate next step to take?
Your bank has recently received an online application for a new business account from
a company n - correct answer. B) Request a company organizational chart that
includes members, directors, and other stakeholders.
You are the compliance/risk officer at ABC Bank. Senior management recently released
plans to issue the bank's first prepaid cards in the coming year. You are aware that drug
trafficking cartels are active in regions in which your institution operates, and recent law
enforcement cases have indicated that cartels may be using prepaid cards to move
value across borders between your country and a neighboring country. As you evaluate
the product team's proposed card features, which control may best mitigate the risk
inherent in prepaid cards?
A) Limit cash withdrawals to certain merchant category codes (MCCs).
B) Impose low dollar limits on cash loads and withdrawals.
C) Limit the number of loads within a specific time frame.
D) Control the number of accounts allowed per person. - correct answer. B) Impose
low dollar limits on cash loads and withdrawals.
, You are investigating a Vietnamese clothing manufacturer that is allegedly laundering
money for a human trafficking organization. Deposits to the manufacturer's bank
account totaled $4.5 million (USD) for the year 2012. All deposits originated from a
single source, a shipping corporation in Panama that makes payments through a bank
account in Riga, Latvia. Payments are received through wire transfers. They are always
in varying amounts of dollars and cents and the SWIFT messaging always states that
the payments are for a line of men's suits. Which is LEAST likely to be a red flag for
money laundering?
A) The owner of the business who is the sole signatory of the bank account resides in
another country.
B) The shipping company is located in Panama, but payments originate from a Latvian
bank in Riga.
C) Payments to the manufacturer are only received from a single customer in another
industry.
D) The payments are in - correct answer. D) The payments are in varying amounts
and their purpose is always the same in the SWIFT messaging.
Uniform Solutions is a wholesale clothing maker and retailer that produces and sells
uniforms to government agencies and large institutions. Recently, the company has
heard that Country Z is looking for a new supplier for its military uniforms. The country
has a long history of governmental corruption. Uniform Solutions is eager to secure the
contract but does not have many connections in Country Z. A company manager
proposes to hire a group of sales agents in Country Z to help make contacts and
negotiate with government officials. You have been asked to review the business
arrangement with the sales agents before a contract is signed to ensure anti-corruption
compliance. What would be the best steps for Uniform Solutions to take before they
execute the contract?
A) The company should ensure the fees and commissions paid to the sales agents are
higher than average to reduce the likelihood they will engage in bribery - correct
answer. B) The company should ensure the contract with the sales agents includes a
provision explicitly forbidding bribery and corrupt payments, and require agents to sign
it.
C) The company should conduct a thorough search of public and paid databases for
any negative news on the sales agents and their company.
You are conducting a country-level corruption risk assessment for a corporation
planning to expand into several new jurisdictions. Which of these sources would most
likely provide the most useful starting point for your assessment?
A) World Bank Stolen Asset Recovery Initiative reports.
Answers Rated A+.
Your bank has recently received an online application for a new business account from
a company named Integral Operations, LLC. By reviewing the operating agreement and
other documents included in the application, you determine that Integral is incorporated
in the U.S. State of Wyoming. A review of the Wyoming corporate registry online shows
that Integral was formed 10 years ago. An initial internet search finds no company
website, and no further information on the company. The registered agent contact
information and address on the company's most recent annual filing is for Biz
Management Solutions, a corporate services provider. Concerned that ACE Operations
appears to be a shelf corporation, you are conducting further due diligence on the
company's ownership structure. Which is the most appropriate next step to take?
Your bank has recently received an online application for a new business account from
a company n - correct answer. B) Request a company organizational chart that
includes members, directors, and other stakeholders.
You are the compliance/risk officer at ABC Bank. Senior management recently released
plans to issue the bank's first prepaid cards in the coming year. You are aware that drug
trafficking cartels are active in regions in which your institution operates, and recent law
enforcement cases have indicated that cartels may be using prepaid cards to move
value across borders between your country and a neighboring country. As you evaluate
the product team's proposed card features, which control may best mitigate the risk
inherent in prepaid cards?
A) Limit cash withdrawals to certain merchant category codes (MCCs).
B) Impose low dollar limits on cash loads and withdrawals.
C) Limit the number of loads within a specific time frame.
D) Control the number of accounts allowed per person. - correct answer. B) Impose
low dollar limits on cash loads and withdrawals.
, You are investigating a Vietnamese clothing manufacturer that is allegedly laundering
money for a human trafficking organization. Deposits to the manufacturer's bank
account totaled $4.5 million (USD) for the year 2012. All deposits originated from a
single source, a shipping corporation in Panama that makes payments through a bank
account in Riga, Latvia. Payments are received through wire transfers. They are always
in varying amounts of dollars and cents and the SWIFT messaging always states that
the payments are for a line of men's suits. Which is LEAST likely to be a red flag for
money laundering?
A) The owner of the business who is the sole signatory of the bank account resides in
another country.
B) The shipping company is located in Panama, but payments originate from a Latvian
bank in Riga.
C) Payments to the manufacturer are only received from a single customer in another
industry.
D) The payments are in - correct answer. D) The payments are in varying amounts
and their purpose is always the same in the SWIFT messaging.
Uniform Solutions is a wholesale clothing maker and retailer that produces and sells
uniforms to government agencies and large institutions. Recently, the company has
heard that Country Z is looking for a new supplier for its military uniforms. The country
has a long history of governmental corruption. Uniform Solutions is eager to secure the
contract but does not have many connections in Country Z. A company manager
proposes to hire a group of sales agents in Country Z to help make contacts and
negotiate with government officials. You have been asked to review the business
arrangement with the sales agents before a contract is signed to ensure anti-corruption
compliance. What would be the best steps for Uniform Solutions to take before they
execute the contract?
A) The company should ensure the fees and commissions paid to the sales agents are
higher than average to reduce the likelihood they will engage in bribery - correct
answer. B) The company should ensure the contract with the sales agents includes a
provision explicitly forbidding bribery and corrupt payments, and require agents to sign
it.
C) The company should conduct a thorough search of public and paid databases for
any negative news on the sales agents and their company.
You are conducting a country-level corruption risk assessment for a corporation
planning to expand into several new jurisdictions. Which of these sources would most
likely provide the most useful starting point for your assessment?
A) World Bank Stolen Asset Recovery Initiative reports.
