ACAMS General Practice 2

Question 1

A bank receives a large cash deposit from a business customer that is inconsistent with the business's stated purpose. Which type of report is the bank most likely required to file?

Accepted Answer

Suspicious Activity Report (SAR)

Answer

Currency Transaction Report (CTR)

Answer

Foreign Bank Account Report (FBAR)

Answer

FinCEN Form 105

Question 2

Under FATF Recommendation 10, what is the minimum standard for customer due diligence when a business relationship is established?

Accepted Answer

Identifying and verifying the customer's identity

Answer

Simplified due diligence for all customers

Answer

Monitoring only high-risk accounts quarterly

Answer

Filing a SAR within 30 days of account opening

Question 3

Which of the following best describes a 'shell company' in the context of money laundering?

Accepted Answer

A legal entity with no active business operations used to obscure ownership

Answer

A company that manufactures protective housing products

Answer

A company in the early stages of incorporation

Answer

A subsidiary of a publicly traded corporation

Question 4

What is the primary purpose of the Bank Secrecy Act (BSA) in the United States?

Accepted Answer

To require financial institutions to assist government agencies in detecting money laundering

Answer

To protect customer bank account information from disclosure

Answer

To regulate interest rates charged by commercial banks

Answer

To ensure equal lending practices across all customer segments

Question 5

A politically exposed person (PEP) is identified in a bank's customer base. What is the most appropriate enhanced due diligence measure?

Accepted Answer

Obtain senior management approval and conduct enhanced ongoing monitoring

Answer

Immediately close the account without notice

Answer

Apply simplified due diligence due to public prominence

Answer

File a SAR upon account opening regardless of transaction history

Question 6

Which stage of the money laundering process involves making illicit funds appear to come from a legitimate source?

Accepted Answer

Integration

Answer

Placement

Answer

Layering

Answer

Structuring

Question 7

What is 'smurfing' in the context of anti-money laundering?

Accepted Answer

Breaking large sums of cash into smaller deposits to avoid CTR thresholds

Answer

Using animated characters in AML training materials

Answer

Layering transactions through multiple shell companies

Answer

Using digital currencies to hide transaction origins