ACAMS General Practice 4

Question 1

A customer frequently exchanges small-denomination bills for large-denomination bills at a bank branch with no apparent business reason.
This behavior most likely indicates which money laundering stage?

Accepted Answer

Placement

Answer

Integration

Answer

Layering

Answer

Structuring of clean funds

Question 2

Under the USA PATRIOT Act Section 312, enhanced due diligence is required for correspondent accounts maintained for which type of foreign institution?

Accepted Answer

Foreign shell banks and banks in jurisdictions of primary money laundering concern

Answer

FATF member country banks with assets over $1 billion

Answer

Any foreign bank operating outside the European Union

Answer

Foreign banks that do not offer retail banking services

Question 3

What is the significance of the 'tipping off' prohibition in AML regulations?

Accepted Answer

It prevents institutions from disclosing to subjects that a SAR has been or may be filed against them

Answer

It prohibits financial institutions from sharing customer data with tax authorities

Answer

It bars employees from reporting suspicious activity to the media

Answer

It restricts law enforcement from informing suspects of ongoing investigations

Question 4

Which of the following is an example of a high-risk business type that requires enhanced AML scrutiny?

Accepted Answer

A money services business (MSB) offering check cashing and wire transfers

Answer

A publicly traded pharmaceutical manufacturer

Answer

A regional supermarket chain accepting card payments only

Answer

A federal credit union serving government employees

Question 5

During an AML audit, the auditor notes that the compliance officer has been approving their own suspicious activity determinations. This represents a failure of which internal control principle?

Accepted Answer

Dual control and segregation of duties

Answer

Know Your Employee (KYE) procedures

Answer

Customer risk scoring methodology

Answer

Regulatory reporting timelines

Question 6

What does 'de-risking' refer to in the context of financial institutions?

Accepted Answer

Exiting relationships or products perceived as high-risk without conducting individual customer assessments

Answer

Implementing stronger AML controls for high-risk customers

Answer

Reducing the number of SARs filed to minimize regulatory attention

Answer

Transferring AML compliance responsibilities to third-party vendors

Question 7

Which typology involves using third parties to purchase monetary instruments on behalf of another person to avoid identification?

Accepted Answer

Structuring with the use of nominees or 'smurfs'

Answer

Layering through real estate transactions

Answer

Integration via luxury asset purchases

Answer

Placement through offshore bank accounts