CrFA Money Laundering & Asset Tracing 3

Question 1

Under the Egmont Group framework, Financial Intelligence Units (FIUs) are primarily responsible for:

Accepted Answer

Receiving, analyzing, and disseminating financial intelligence to combat money laundering and terrorist financing

Answer

FIUs collect SARs and other financial data, analyze it for patterns of criminal activity, and share actionable intelligence with domestic and foreign law enforcement agencies.

Question 2

In the context of money laundering investigations, 'tipping off' refers to:

Accepted Answer

Alerting a customer that they are under investigation or that a SAR has been filed

Answer

Tipping off is a criminal offense in most jurisdictions whereby a bank employee or advisor warns a suspect that they are under investigation or that a SAR has been filed, potentially undermining the investigation.

Question 3

Which of the following best describes 'cuckoo smurfing'?

Accepted Answer

Embedding illegal funds within legitimate wire transfers sent to an unsuspecting account holder

Answer

In cuckoo smurfing, a criminal substitutes legitimate overseas funds with illicit domestic cash — the recipient abroad gets their expected payment while the criminal receives equivalent clean cash domestically.

Question 4

When a forensic accountant discovers that a subject has converted cash into casino chips and then cashed them out as 'winnings,' this technique is known as:

Accepted Answer

Casino laundering

Answer

Casino laundering exploits the cash-intensive nature of gambling establishments; criminals convert illicit cash into chips and redeem them as documented winnings, creating a seemingly legitimate source of funds.

Question 5

The FATF (Financial Action Task Force) 40 Recommendations primarily serve as:

Accepted Answer

International standards for combating money laundering, terrorist financing, and proliferation financing

Answer

The FATF 40 Recommendations are globally recognized policy standards that countries are expected to implement through legislation and regulation to combat money laundering and terrorist financing.

CrFA - Certified Forensic Accountant Practice Test

CrFA - Certified Forensic Accountant Practice Test

CrFA Money Laundering & Asset Tracing 3