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

Smurfing involves breaking large sums into smaller deposits below the $10,000 Currency Transaction Report threshold to avoid detection.

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

The BSA provides for civil penalties of up to $100,000 per willful violation for failure to file CTRs.

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

Purchasing winning lottery tickets from actual winners to explain illicit funds is a form of layering that creates a legitimate-appearing source of income.

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

A beneficial owner is the natural person(s) who ultimately owns or controls a legal entity, which FinCEN's CDD rule requires financial institutions to identify.

Question 5

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

Accepted Answer

Layering

Answer

Layering is the second stage of money laundering, designed to put distance between criminal proceeds and their source through complex transactions.

(ACFE) Association of Certified Fraud Examiners Practice Test

(ACFE) Association of Certified Fraud Examiners Practice Test

ACFE Money Laundering Investigation 2