ACFE Money Laundering Investigation 2

Question 1

Which financial instrument is most commonly associated with the 'smurfing' technique in money laundering?

Accepted Answer

Multiple cash deposits below the CTR reporting threshold

Answer

Wire transfers above $10,000

Answer

Foreign currency exchanges

Answer

Cashier's checks over $50,000

Question 2

Under the Bank Secrecy Act, what is the maximum civil penalty per willful violation for failing to file a Currency Transaction Report?

Accepted Answer

$100,000

Answer

$10,000

Answer

$25,000

Answer

$1,000,000

Question 3

A fraudster purchases lottery tickets at face value, then claims to have 'won' the lottery to explain a large cash windfall. This technique is called:

Accepted Answer

Layering

Answer

Round-tripping

Answer

White label laundering

Answer

Loan-back scheme

Question 4

What does the term 'beneficial owner' mean in the context of anti-money laundering regulations?

Accepted Answer

The natural person who ultimately owns or controls a legal entity

Answer

The bank that holds the account

Answer

The attorney who sets up a shell company

Answer

A government agency that benefits from seizure

Question 5

Which stage of the money laundering cycle involves moving funds through complex financial transactions to disguise their origin?

Accepted Answer

Layering

Answer

Placement

Answer

Integration

Answer

Structuring

Question 6

An investigator notices a car dealership accepting large cash payments for vehicles and then depositing only small amounts over time. This is an example of:

Accepted Answer

Structuring using a business front

Answer

Integration through real estate

Answer

Trade-based money laundering

Answer

Hawala network use

Question 7

Which of the following is a key indicator of trade-based money laundering (TBML)?

Accepted Answer

Over- or under-invoicing of goods and services

Answer

Consistent invoice amounts matching market prices

Answer

Shipments insured for replacement value

Answer

Use of letters of credit with major banks