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

Bulk cash smuggling involves the physical movement of currency across international borders to avoid financial reporting requirements and law enforcement detection.

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

Luxury goods, real estate, and casinos are prime integration vehicles because high-value purchases can legitimize large sums of money, and these industries have historically had less rigorous AML oversight.

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

Shell companies — legal entities with no active business operations — are used primarily to obscure beneficial ownership, making it difficult for authorities to trace assets back to criminals.

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

Commingling (also called 'blending') involves mixing illegal proceeds with legitimate cash revenues of a business — such as a restaurant or car wash — making it difficult to distinguish criminal funds from legitimate income.

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

Mirror trading involves simultaneously buying securities in one currency and selling equivalent securities in another currency, effectively transferring value across borders. Deutsche Bank was fined approximately $630 million in 2017 for a $10 billion Russian mirror trading scheme.

(ACAMS) Association of Certified Anti-Money Laundering Specialists Practice Test

(ACAMS) Association of Certified Anti-Money Laundering Specialists Practice Test

ACAMS AML/CFT Risk and Methods 3