ACAMS AML/CFT Risk and Methods 3

Question 1

What is 'bulk cash smuggling' in the context of money laundering?

Accepted Answer

Physically transporting large amounts of currency across borders to avoid financial reporting

Answer

Electronically transferring large sums across borders

Answer

Using multiple cash deposits under reporting thresholds

Answer

Converting cash into precious metals for storage

Question 2

Which sector is considered most vulnerable to exploitation for integration — the final stage of money laundering?

Accepted Answer

Luxury goods, real estate, and casino industries

Answer

Payroll processing companies

Answer

Credit unions under $100 million in assets

Answer

Non-profit organizations focused on domestic causes

Question 3

What is the primary purpose of a 'shell company' in money laundering schemes?

Accepted Answer

To conceal the true beneficial owner of assets and transactions

Answer

To provide employment for money launderers

Answer

To enable legal tax avoidance strategies

Answer

To facilitate legitimate cross-border trade

Question 4

Which money laundering typology involves investing criminal proceeds in a legitimate business that naturally handles large amounts of cash?

Accepted Answer

Commingling

Answer

Correspondent banking abuse

Answer

Mirror trading

Answer

Hawala transfers

Question 5

What is 'mirror trading' and which major bank was fined for facilitating it?

Accepted Answer

Matching buy and sell orders in different currencies; Deutsche Bank

Answer

Copying trades from legitimate investors; Goldman Sachs

Answer

Using mirrors to conceal physical currency; HSBC

Answer

Creating duplicate investment accounts; Citibank

Question 6

Under the FATF framework, what are 'Designated Non-Financial Businesses and Professions' (DNFBPs) required to do?

Accepted Answer

Apply AML/CFT measures including CDD and suspicious transaction reporting when performing certain activities

Answer

Only report suspicious transactions above $50,000

Answer

Register with FinCEN and obtain a money transmitter license

Answer

Hire a dedicated compliance officer for every 10 employees