Practice Test Geeks(ACAMS) Association of Certified Anti-Money Laundering Specialists Practice Test
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AML/CFT Risk and Methods Flashcards

6 cards from real ACAMS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 AML/CFT Risk and Methods flashcards as text

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

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

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

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

    Answer: Luxury goods, real estate, and casino industries

    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.

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

    Answer: To conceal the true beneficial owner of assets and transactions

    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.

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

    Answer: Commingling

    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.

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

    Answer: Matching buy and sell orders in different currencies; Deutsche Bank

    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.

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

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

    FATF Recommendations 22 and 23 require DNFBPs to apply customer due diligence, record-keeping, and suspicious transaction reporting requirements when they engage in specified financial activities.