ACAMS Practice Test (Book) 100 Q&A/ Already
Graded A+.
Which of the following is the most common method of laundering money through a legal
money services business? - Answer: Purchasing structured money instruments
In general, the 3 phases of money laundering are said to be: Placement; - Answer: Layering and
integration
Which statement is true? - Answer: 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
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,Which 3 of the following is an indication of possible money laundering in an insurance industry
scenario? - Answer: -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
Which 2 activities are typically associated with the black market peso exchange (BMPE) money
laundering system? - Answer: -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
What is the Right of Reciprocity in the field of in the field of international cooperation against
money laundering? - Answer: 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
The greatest risk for money laundering is for casinos that - Answer: Allow customers with credit
balances to withdraw funds by check in another jurisdiction
Which statement is true regarding the risk of Politically Exposed Persons (PEPs)? - Answer: PEPs
have significantly greater exposure to the politically corrupt funds, including accepting bribes or
misappropriating government funds
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
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, 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? - Answer: Loan back
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? - Answer: 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.
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: - Answer: To over-or under-invoice the goods.
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Graded A+.
Which of the following is the most common method of laundering money through a legal
money services business? - Answer: Purchasing structured money instruments
In general, the 3 phases of money laundering are said to be: Placement; - Answer: Layering and
integration
Which statement is true? - Answer: 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
Page 1 of 22
,Which 3 of the following is an indication of possible money laundering in an insurance industry
scenario? - Answer: -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
Which 2 activities are typically associated with the black market peso exchange (BMPE) money
laundering system? - Answer: -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
What is the Right of Reciprocity in the field of in the field of international cooperation against
money laundering? - Answer: 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
The greatest risk for money laundering is for casinos that - Answer: Allow customers with credit
balances to withdraw funds by check in another jurisdiction
Which statement is true regarding the risk of Politically Exposed Persons (PEPs)? - Answer: PEPs
have significantly greater exposure to the politically corrupt funds, including accepting bribes or
misappropriating government funds
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
Page 2 of 22
, 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? - Answer: Loan back
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? - Answer: 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.
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: - Answer: To over-or under-invoice the goods.
Page 3 of 22
