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

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

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  1. What is 'structuring' (also known as 'smurfing') in the context of money laundering?

    Answer: Breaking large cash amounts into smaller transactions to avoid CTR filing thresholds

    Structuring is the illegal practice of splitting transactions to keep them below the $10,000 CTR reporting threshold.

  2. Trade-based money laundering (TBML) most commonly involves which of the following techniques?

    Answer: Over- or under-invoicing goods and services in international trade transactions

    TBML exploits international trade by manipulating invoice values, quantities, or quality of goods to transfer value across borders.

  3. Which of the following customer behaviors is a classic red flag for money laundering in a retail banking context?

    Answer: Frequently depositing structured cash amounts just below the $10,000 CTR threshold

    Repeated cash deposits just below the CTR threshold suggest deliberate structuring to avoid mandatory reporting.

  4. What is 'integration' as the final stage of money laundering?

    Answer: The reintroduction of laundered funds into the legitimate economy

    Integration is the final stage where laundered money re-enters the legitimate economy, often through luxury purchases, real estate, or business investments.

  5. Hawala is best described as which type of money transfer system?

    Answer: An informal value transfer system based on trust and a network of brokers

    Hawala operates outside the formal banking system, transferring value through a network of brokers (hawaladars) using a code or token rather than physical movement of funds.

  6. Real estate is a common vehicle for money laundering primarily because of which characteristic?

    Answer: Large sums can be absorbed, assets appreciate, and ownership can be obscured through shell companies

    Real estate allows launderers to invest large amounts of illicit cash, benefit from appreciation, and hide ownership through layered corporate structures.

  7. Which of the following best describes 'layering' in the money laundering process?

    Answer: Conducting complex series of financial transactions to distance funds from their source

    Layering involves moving and converting funds through multiple transactions or accounts to make tracing the original source extremely difficult.