CrFA Money Laundering & Asset Tracing

Question 1

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

Accepted Answer

Introducing illicit cash into the financial system

Answer

Converting illegal proceeds into seemingly legitimate assets

Answer

Concealing the audit trail linking funds to crime

Answer

Integrating laundered money into the legitimate economy

Question 2

Under the Bank Secrecy Act (BSA), financial institutions are required to file a Currency Transaction Report (CTR) for cash transactions exceeding:

Accepted Answer

$10,000

Answer

$5,000

Answer

$15,000

Answer

$25,000

Question 3

The practice of breaking large amounts of cash into smaller deposits to avoid CTR reporting thresholds is known as:

Accepted Answer

Smurfing (structuring)

Answer

Layering

Answer

Integration

Answer

Cuckoo smurfing

Question 4

Which federal agency is primarily responsible for enforcing the Bank Secrecy Act and combating money laundering in the United States?

Accepted Answer

FinCEN

Answer

SEC

Answer

FBI

Answer

FDIC

Question 5

A Suspicious Activity Report (SAR) must generally be filed within how many days of detecting a suspicious transaction?

Accepted Answer

30 days

Answer

15 days

Answer

45 days

Answer

60 days

Question 6

Which of the following is an example of the 'layering' stage of money laundering?

Accepted Answer

Conducting a series of wire transfers through multiple offshore accounts

Answer

Depositing cash proceeds into a bank account

Answer

Purchasing luxury goods with illicit cash

Answer

Opening a legitimate business to mix legal and illegal revenues

Question 7

The USA PATRIOT Act expanded AML requirements by mandating that financial institutions establish Customer Identification Programs (CIPs). What is the primary purpose of a CIP?

Accepted Answer

To verify the identity of customers opening new accounts

Answer

To monitor customer credit scores

Answer

To report all cash transactions over $5,000

Answer

To freeze accounts suspected of terrorist financing