CAMS Money Laundering Typologies and Methods 1

Question 1

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

Accepted Answer

Placement, layering, integration

Answer

The three universally recognized stages are placement (introducing funds), layering (obscuring the trail), and integration (returning funds as legitimate).

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

Placement is the first stage, where criminal proceeds are physically deposited or converted into financial instruments to enter the formal financial system.

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

Structuring involves deliberately breaking up large cash deposits into smaller transactions (under $10,000 in the US) to evade CTR filing requirements.

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

TBML exploits international trade transactions by over- or under-invoicing goods and services to move value between parties while disguising its illicit origin.

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

Shell companies lack real operations or employees and are used to add layers of anonymity, making it difficult to trace the true beneficial owner of assets.

CAMS - Certified Anti-Money Laundering Specialist Certification Practice Test

CAMS - Certified Anti-Money Laundering Specialist Certification Practice Test

CAMS Money Laundering Typologies and Methods 1