CCB Financial Crime Prevention 2

Question 1

Which typology involves layering illicit funds through multiple shell companies across different jurisdictions to obscure their origin?

Accepted Answer

Corporate layering

Answer

Corporate layering uses a web of shell companies in multiple jurisdictions to make tracing illicit funds extremely difficult.

Question 2

Under the Bank Secrecy Act (BSA), what is the minimum threshold that triggers a Currency Transaction Report (CTR)?

Accepted Answer

$10,000

Answer

The BSA requires financial institutions to file a CTR for cash transactions exceeding $10,000 in a single business day.

Question 3

A customer purchases multiple cashier's checks each under $10,000 on the same day to avoid CTR filing. This is known as:

Accepted Answer

Structuring

Answer

Structuring (also called 'smurfing' when multiple people are used) refers to breaking up transactions specifically to evade CTR reporting thresholds.

Question 4

Which international body sets global standards for anti-money laundering and combating the financing of terrorism (AML/CFT)?

Accepted Answer

FATF

Answer

The Financial Action Task Force (FATF) is the global standard-setter for AML/CFT policies and issues its Forty Recommendations.

Question 5

In the context of trade-based money laundering (TBML), which scheme involves deliberately mis-stating the price of goods on invoices?

Accepted Answer

Over/under-invoicing

Answer

Over/under-invoicing is a TBML technique where the stated price differs from the true market value to transfer value across borders.

(CCB) Certified Compliance and Business Specialist Practice Test