ACFE Money Laundering Investigation 3

Question 1

The Financial Action Task Force (FATF) Recommendations are best described as:

Accepted Answer

Internationally recognized standards for combating money laundering and terrorist financing

Answer

Legally binding international laws enforceable in all member nations

Answer

A US-specific framework administered by FinCEN

Answer

Criminal statutes adopted by the United Nations

Question 2

In a real estate money laundering scheme, which tactic is most commonly used during the integration stage?

Accepted Answer

Purchasing property with cash and reselling at market value

Answer

Renting properties to collect legitimate rental income

Answer

Mortgaging a property and defaulting on the loan

Answer

Transferring title through a series of shell LLCs

Question 3

A Suspicious Activity Report (SAR) filed with FinCEN must be kept confidential because:

Accepted Answer

Tipping off the subject could obstruct the investigation and is prohibited by law

Answer

It contains classified government intelligence

Answer

SAR filers are immune from civil liability only if the report stays secret

Answer

FinCEN requires a 180-day embargo on all financial filings

Question 4

Which statute is the primary US federal law criminalizing money laundering?

Accepted Answer

18 U.S.C. § 1956

Answer

31 U.S.C. § 5313

Answer

12 U.S.C. § 1829b

Answer

21 U.S.C. § 881

Question 5

What is the purpose of a 'Know Your Customer' (KYC) program at financial institutions?

Accepted Answer

To verify customer identity and assess money laundering risk

Answer

To cross-sell financial products based on customer profiles

Answer

To comply with credit underwriting requirements

Answer

To satisfy FDIC deposit insurance documentation rules

Question 6

In a money laundering investigation, 'red flags' related to wire transfers include which of the following?

Accepted Answer

Wires to high-risk jurisdictions with no apparent business purpose

Answer

Wires sent to established trading partners in amounts matching invoices

Answer

Wires accompanied by a signed letter from the company CFO

Answer

Wires processed during normal banking hours with standard fees

Question 7

Which of the following best describes the 'hawala' system in the context of money laundering?

Accepted Answer

An informal value transfer system operating outside regulated banking

Answer

A formal SWIFT-based international wire transfer network

Answer

A UN-supervised remittance platform for developing nations

Answer

A crypto-to-fiat conversion service licensed in multiple jurisdictions