ACFE Money Laundering Investigation 4

Question 1

A CFE discovers that a client's company has been making round-trip transactions where funds leave the company and return disguised as foreign investment. This is known as:

Accepted Answer

Round-tripping

Answer

Round-tripping involves sending money offshore and reintroducing it as foreign investment, making domestic funds appear to come from a foreign source.

Question 2

Under FinCEN's Customer Due Diligence (CDD) Rule, what ownership threshold triggers beneficial ownership identification for legal entities?

Accepted Answer

25% or more ownership

Answer

FinCEN's CDD Rule requires financial institutions to identify individuals who own 25% or more of a legal entity customer.

Question 3

Which professional is most at risk of being used as a 'gatekeeper' in a money laundering scheme?

Accepted Answer

An attorney forming shell companies on behalf of anonymous clients

Answer

Attorneys, accountants, and other professionals who form companies or manage funds for clients can be exploited as gatekeepers to obscure beneficial ownership.

Question 4

What is the primary difference between 'concealment' money laundering and 'promotion' money laundering under 18 U.S.C. § 1956?

Accepted Answer

Concealment hides proceeds of past crimes; promotion uses funds to facilitate future crimes

Answer

Concealment money laundering involves disguising the nature or source of criminal proceeds, while promotion money laundering uses those proceeds to further criminal activity.

Question 5

A money launderer uses a legitimate restaurant business to commingle illegal cash with daily sales receipts, inflating reported revenues. This primarily exploits which characteristic?

Accepted Answer

The cash-intensive nature of restaurant operations

Answer

Cash-intensive businesses like restaurants are attractive for commingling because large cash revenues are normal and harder to distinguish from illicit funds.

(ACFE) Association of Certified Fraud Examiners Practice Test

(ACFE) Association of Certified Fraud Examiners Practice Test

ACFE Money Laundering Investigation 4