CFE Money Laundering 1

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

Placement is the first stage where illegal cash is introduced into the financial system, often through bank deposits or cash-intensive businesses.

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

Structuring, also called smurfing, is the practice of breaking large amounts of cash into smaller deposits specifically to avoid CTR reporting requirements.

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

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

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

Layering is the second stage designed to distance the funds from their criminal source through complex financial transactions.

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

FinCEN regulations require financial institutions to file a SAR within 30 calendar days of detecting suspicious activity, with a 60-day extension if no suspect is identified.

Certified Fraud Examiner Exam Practice Test

Certified Fraud Examiner Exam Practice Test

CFE Money Laundering 1