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

FATF Recommendations are internationally recognized standards, not binding law, but they guide national AML/CFT legislation across member countries.

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

Buying property with dirty cash and selling it converts illicit funds into apparently legitimate proceeds from a real estate transaction.

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

Federal law prohibits SAR filers from disclosing the existence of a SAR to the subject because it could alert them to an investigation and result in criminal obstruction.

Question 4

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

Accepted Answer

18 U.S.C. § 1956

Answer

18 U.S.C. § 1956 is the primary federal money laundering statute, prohibiting financial transactions involving proceeds of specified unlawful activities.

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

KYC programs are designed to verify the identity of customers and understand the nature of their activities to assess money laundering and terrorist financing risk.

(ACFE) Association of Certified Fraud Examiners Practice Test

(ACFE) Association of Certified Fraud Examiners Practice Test

ACFE Money Laundering Investigation 3