ACFCS Practice Test Questions and
Answers Latest Version (2024/2025)
Already Passed
What is the primary goal of anti-money laundering (AML) programs in financial institutions?
A) To increase profits for financial institutions.
B) To prevent illegal financial activities such as money laundering and terrorist financing.
C) To provide loans to businesses.
D) To help clients avoid taxes.
✔✔B) To prevent illegal financial activities such as money laundering and terrorist financing.
Which of the following is an example of a financial crime?
A) Issuing loans for housing development.
B) Insider trading of stocks.
C) Investing in government bonds.
D) Offering financial advice to clients.
✔✔B) Insider trading of stocks.
What does the term "KYC" stand for in financial institutions?
1
,A) Know Your Client
B) Keep Your Capital
C) Know Your Credit
D) Keep Your Cash
✔✔A) Know Your Client
Which of the following is a red flag for potential money laundering?
A) A customer frequently deposits large amounts of cash that have no clear source.
B) A customer makes withdrawals from their account that match their usual account activity.
C) A customer opens an account with a standard deposit amount and no unusual behavior.
D) A customer regularly buys insurance products from the institution.
✔✔A) A customer frequently deposits large amounts of cash that have no clear source.
What is the primary purpose of a Suspicious Activity Report (SAR)?
A) To document financial transactions.
B) To report potential illegal activity or transactions to authorities.
C) To monitor market fluctuations.
D) To assess a client's creditworthiness.
2
, ✔✔B) To report potential illegal activity or transactions to authorities.
What is the role of a compliance officer in a financial institution?
A) To approve loans for clients.
B) To ensure that the institution follows laws and regulations, particularly regarding financial
crimes.
C) To manage the institution's investment portfolio.
D) To provide financial advice to clients.
✔✔B) To ensure that the institution follows laws and regulations, particularly regarding
financial crimes.
Which of the following is an example of a structured transaction to avoid reporting
requirements?
A) A customer deposits $10,000 in cash, which is reported.
B) A customer deposits $5,000 in cash at different times throughout the day to avoid detection.
C) A customer makes a large wire transfer between accounts.
D) A customer opens a new checking account with a deposit of $20,000.
✔✔B) A customer deposits $5,000 in cash at different times throughout the day to avoid
detection.
3
Answers Latest Version (2024/2025)
Already Passed
What is the primary goal of anti-money laundering (AML) programs in financial institutions?
A) To increase profits for financial institutions.
B) To prevent illegal financial activities such as money laundering and terrorist financing.
C) To provide loans to businesses.
D) To help clients avoid taxes.
✔✔B) To prevent illegal financial activities such as money laundering and terrorist financing.
Which of the following is an example of a financial crime?
A) Issuing loans for housing development.
B) Insider trading of stocks.
C) Investing in government bonds.
D) Offering financial advice to clients.
✔✔B) Insider trading of stocks.
What does the term "KYC" stand for in financial institutions?
1
,A) Know Your Client
B) Keep Your Capital
C) Know Your Credit
D) Keep Your Cash
✔✔A) Know Your Client
Which of the following is a red flag for potential money laundering?
A) A customer frequently deposits large amounts of cash that have no clear source.
B) A customer makes withdrawals from their account that match their usual account activity.
C) A customer opens an account with a standard deposit amount and no unusual behavior.
D) A customer regularly buys insurance products from the institution.
✔✔A) A customer frequently deposits large amounts of cash that have no clear source.
What is the primary purpose of a Suspicious Activity Report (SAR)?
A) To document financial transactions.
B) To report potential illegal activity or transactions to authorities.
C) To monitor market fluctuations.
D) To assess a client's creditworthiness.
2
, ✔✔B) To report potential illegal activity or transactions to authorities.
What is the role of a compliance officer in a financial institution?
A) To approve loans for clients.
B) To ensure that the institution follows laws and regulations, particularly regarding financial
crimes.
C) To manage the institution's investment portfolio.
D) To provide financial advice to clients.
✔✔B) To ensure that the institution follows laws and regulations, particularly regarding
financial crimes.
Which of the following is an example of a structured transaction to avoid reporting
requirements?
A) A customer deposits $10,000 in cash, which is reported.
B) A customer deposits $5,000 in cash at different times throughout the day to avoid detection.
C) A customer makes a large wire transfer between accounts.
D) A customer opens a new checking account with a deposit of $20,000.
✔✔B) A customer deposits $5,000 in cash at different times throughout the day to avoid
detection.
3
