ACFE - Association of Certified Fraud Examiners Money Laundering Investigation Questions and Answers

Question 1

An investigator is tracing illicitly obtained funds.
The suspect made numerous wire transfers between various shell corporations in different jurisdictions, purchased and quickly sold securities, and exchanged currencies multiple times.
These actions BEST represent which stage of the money laundering process?

Accepted Answer

Layering

Answer

Placement

Answer

Integration

Answer

Structuring

Question 2

Which of the following activities is the clearest indicator of "structuring," a money laundering technique designed to evade reporting requirements?

Accepted Answer

Making multiple cash deposits, each just under $10,000, at different branches or on different days.

Answer

Exchanging a large volume of small-denomination bills for large-denomination bills.

Answer

Using a single, large wire transfer to move funds to an offshore jurisdiction known for bank secrecy.

Answer

Commingling illicit cash with the daily receipts of a legitimate cash-intensive business.

Question 3

A CFE is investigating a public official suspected of accepting bribes. The official's known legitimate income is approximately $150,000 per year, yet they have recently purchased a luxury yacht, two vacation homes, and several high-end vehicles. To prove that the official's expenditures exceed their legitimate sources of funds, which investigative method would be MOST effective?

Accepted Answer

Net worth analysis

Answer

Bank deposit analysis

Answer

Asset misappropriation review

Answer

Forensic audit of public records

Question 4

What is the primary function of the Financial Action Task Force (FATF) in the global fight against money laundering and terrorist financing?

Accepted Answer

To set international standards and promote the effective implementation of legal, regulatory, and operational measures.

Answer

To prosecute individuals and entities involved in international money laundering schemes.

Answer

To act as a global central bank for processing cross-border suspicious activity reports.

Answer

To directly seize the assets of sanctioned countries and terrorist organizations.

Question 5

An import/export company is under investigation for money laundering. The company's invoices show it purchased electronic components from a foreign supplier for $50 per unit, but investigators determine the fair market value of the components is only $5 per unit. This practice allows the company to transfer significant value offshore. This scheme is a classic example of which form of money laundering?

Accepted Answer

Trade-Based Money Laundering (TBML) through over-invoicing

Answer

Bulk cash smuggling

Answer

Shell corporation layering

Answer

Structuring

Question 6

Under the U.S. Bank Secrecy Act (BSA), a financial institution is generally required to file a Suspicious Activity Report (SAR) for a transaction that it knows, suspects, or has reason to suspect involves funds derived from illegal activities and aggregates to at least what threshold when a suspect can be identified?

Accepted Answer

$5,000

Answer

$10,000

Answer

$3,000

Answer

$25,000