CFE Money Laundering

Question 1

Which of the following best describes the 'placement' stage of money laundering?

Accepted Answer

Introducing illegally obtained cash into the financial system

Answer

Layering illicit funds through complex financial transactions

Answer

Integrating laundered money back into the legitimate economy

Answer

Converting proceeds into untraceable digital assets

Question 2

A launderer deposits $9,500 in cash multiple times to avoid the $10,000 Currency Transaction Report (CTR) threshold. This activity is known as:

Accepted Answer

Structuring (smurfing)

Answer

Commingling

Answer

Integration

Answer

Shell company fraud

Question 3

Under the Bank Secrecy Act (BSA), financial institutions in the U.S. must file a Currency Transaction Report (CTR) for cash transactions exceeding:

Accepted Answer

$10,000

Answer

$5,000

Answer

$25,000

Answer

$50,000

Question 4

Which stage of money laundering involves moving funds through a series of accounts, wire transfers, or shell companies to obscure their origin?

Accepted Answer

Layering

Answer

Placement

Answer

Integration

Answer

Conversion

Question 5

A Suspicious Activity Report (SAR) must be filed by U.S. financial institutions within how many calendar days of detecting a suspicious transaction?

Accepted Answer

30 days

Answer

15 days

Answer

45 days

Answer

60 days

Question 6

Which federal agency is primarily responsible for administering the Bank Secrecy Act and overseeing anti-money laundering compliance in the U.S.?

Accepted Answer

The Financial Crimes Enforcement Network (FinCEN)

Answer

The Securities and Exchange Commission (SEC)

Answer

The Office of the Comptroller of the Currency (OCC)

Answer

The Federal Reserve Board

Question 7

In the context of money laundering, 'integration' refers to:

Accepted Answer

Reintroducing laundered money into the legitimate economy

Answer

Depositing cash into a bank account

Answer

Moving funds through multiple accounts to hide their source

Answer

Converting drug proceeds into cryptocurrency