ACAMS AML/CFT Risk and Methods 2

Question 1

Which money laundering method involves purchasing multiple monetary instruments in amounts just below the Currency Transaction Report (CTR) threshold?

Accepted Answer

Structuring

Answer

Smurfing

Answer

Layering

Answer

Integration

Question 2

In the context of AML, what does 'layering' primarily aim to achieve?

Accepted Answer

Disguising the audit trail between illicit funds and their source

Answer

Converting cash into other asset types

Answer

Reintroducing funds into the legitimate economy

Answer

Identifying the beneficial owner of an account

Question 3

Which of the following is a key red flag indicating potential money laundering through real estate?

Accepted Answer

Property is purchased with all-cash from a shell company with no apparent business purpose

Answer

Buyer uses a mortgage from a licensed lender

Answer

Buyer requests a title insurance policy

Answer

Transaction is conducted through a licensed real estate agent

Question 4

What is 'trade-based money laundering' (TBML)?

Accepted Answer

Exploiting international trade transactions to disguise money laundering

Answer

Using stock market trades to launder funds

Answer

Exchanging foreign currencies at inflated rates

Answer

Using cryptocurrency exchanges to move funds

Question 5

Which term describes the use of multiple financial institutions or accounts to conceal the source of illicit funds?

Accepted Answer

Cuckoo smurfing

Answer

Micro-structuring

Answer

Bulk cash smuggling

Answer

Currency arbitrage

Question 6

Which AML risk factor is most associated with professional money laundering networks (PMLNs)?

Accepted Answer

Use of gatekeepers such as lawyers, accountants, and company formation agents

Answer

Reliance on a single jurisdiction for all transactions

Answer

Conducting only small-value transactions

Answer

Exclusively using regulated financial institutions