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

Exchanging small bills for large denominations is a classic placement technique used to consolidate physically bulky criminal cash proceeds.

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

Section 312 requires enhanced due diligence for correspondent accounts of foreign shell banks and banks in jurisdictions identified as primary money laundering concerns.

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

The tipping off prohibition makes it illegal to inform a customer or suspect that they are the subject of a SAR filing or related investigation.

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

MSBs handle high volumes of cash transactions and can be exploited for money laundering, making them inherently high-risk and subject to enhanced scrutiny.

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

Self-approval violates segregation of duties, a core internal control requiring that different individuals perform and approve significant compliance decisions.

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

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

ACAMS General Practice 4