Practice Test Geeks(ACAMS) Association of Certified Anti-Money Laundering Specialists Practice Test
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Trade-Based Money Laundering (TBML) 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 Trade-Based Money Laundering (TBML) flashcards as text

  1. What is the primary definition of trade-based money laundering (TBML)?

    Answer: Using trade transactions to move value and disguise criminal proceeds

    TBML involves manipulating trade transactions—through over/under-invoicing, multiple invoicing, or falsely described goods—to move value and legitimize illicit funds.

  2. Which TBML technique involves exporting goods and invoicing them at a price higher than the true market value?

    Answer: Over-invoicing

    Over-invoicing allows the exporter to receive more funds than the goods are worth, effectively transferring value from the importing country to the exporting country.

  3. A US bank notices a customer is receiving multiple payments from different overseas buyers for the same shipment of electronics. This is most indicative of which TBML red flag?

    Answer: Multiple invoicing

    Multiple invoicing involves issuing more than one invoice for a single shipment, enabling the seller to collect payment multiple times for the same goods.

  4. The Black Market Peso Exchange (BMPE) primarily originated from which illicit industry?

    Answer: Drug trafficking

    BMPE originated as a method for Colombian drug traffickers to convert US dollar proceeds into Colombian pesos without moving currency across borders directly.

  5. Which international body has issued guidance specifically addressing TBML typologies and red flags?

    Answer: Financial Action Task Force (FATF)

    FATF issued a landmark report on TBML in 2006 and subsequent guidance identifying key typologies, red flags, and recommended controls.

  6. Which of the following is a key indicator of a phantom shipment in a TBML scheme?

    Answer: Payment is received but no corresponding goods movement is documented

    In a phantom shipment, trade documents are fabricated and payment is exchanged, but no actual goods are shipped, making the absence of verifiable cargo movement a key red flag.