CAMS Money Laundering Typologies and Methods

Question 1

What are the three classic stages of the money laundering process?

Accepted Answer

Placement, layering, integration

Answer

Identification, reporting, prosecution

Answer

Detection, prevention, enforcement

Answer

Collection, transfer, withdrawal

Question 2

Which stage of the money laundering process involves introducing illicit cash into the financial system for the first time?

Accepted Answer

Placement

Answer

Layering

Answer

Integration

Answer

Structuring

Question 3

What is 'structuring' (also known as 'smurfing') in the context of money laundering?

Accepted Answer

Breaking large cash deposits into smaller amounts to avoid Currency Transaction Report thresholds

Answer

Using shell companies across multiple jurisdictions to hide asset ownership

Answer

Transferring funds through multiple correspondent banks internationally

Answer

Converting cash proceeds into cryptocurrency assets

Question 4

Trade-Based Money Laundering (TBML) most commonly involves which of the following techniques?

Accepted Answer

Manipulating trade invoices and shipping documents to transfer value across borders

Answer

Using real estate sales to integrate funds into the economy

Answer

Placing cash proceeds directly into casino accounts

Answer

Creating fictitious payroll accounts to launder funds

Question 5

In money laundering, a 'shell company' is best defined as:

Accepted Answer

A legal entity with no genuine business operations used to conceal asset ownership

Answer

A company that manufactures petroleum-based chemical products

Answer

A legitimate business used exclusively for lawful tax minimization strategies

Answer

A licensed financial services company providing insurance products

Question 6

Real estate money laundering most commonly occurs during which stage of the laundering process?

Accepted Answer

Integration

Answer

Placement

Answer

Reporting

Answer

Layering

Question 7

Which money laundering typology involves converting large amounts of cash into monetary instruments such as money orders, traveler's checks, or cashier's checks?

Accepted Answer

Monetary instrument purchases

Answer

Loan-back schemes

Answer

Cuckoo smurfing

Answer

Currency exchange arbitrage