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

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

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

The BSA requires CTRs for cash transactions exceeding $10,000 in a single business day, regardless of whether the transaction is suspicious.

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

Smurfing, also called structuring, involves making multiple small deposits below the $10,000 CTR threshold to avoid detection — itself a federal crime under 31 U.S.C. § 5324.

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

The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Treasury, administers and enforces the BSA and collects financial intelligence to combat money laundering.

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

Financial institutions must file a SAR within 30 calendar days of detecting a suspicious transaction, or 60 days if no suspect is initially identified.

CrFA - Certified Forensic Accountant Practice Test

CrFA - Certified Forensic Accountant Practice Test

CrFA Money Laundering & Asset Tracing