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FBI Financial Crimes and Money Laundering Flashcards

7 cards from real FBI practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 FBI Financial Crimes and Money Laundering flashcards as text

  1. What are the three recognized stages of money laundering?

    Answer: Placement, Layering, Integration

    The three stages are placement (introducing illicit funds into the financial system), layering (disguising the trail through complex transactions), and integration (making funds appear legitimate).

  2. The Bank Secrecy Act (BSA) requires financial institutions to file a Currency Transaction Report (CTR) for cash transactions exceeding what threshold in a single business day?

    Answer: $10,000

    The BSA mandates that financial institutions file a CTR for any cash transaction exceeding $10,000 in a single business day to help detect potential money laundering.

  3. What is 'structuring' (also known as 'smurfing') in the context of federal financial crimes?

    Answer: Breaking large cash transactions into smaller amounts to evade mandatory reporting requirements

    Structuring involves deliberately breaking up large cash transactions into amounts below the $10,000 CTR threshold to avoid mandatory reporting, and is itself a federal crime under 31 U.S.C. § 5324.

  4. Which federal statute serves as the primary law used to prosecute money laundering offenses in the United States?

    Answer: Money Laundering Control Act (18 U.S.C. § 1956)

    18 U.S.C. § 1956, the Money Laundering Control Act of 1986, is the primary federal statute for prosecuting money laundering offenses involving proceeds from specified unlawful activities.

  5. In financial crimes investigations, what is a 'shell company'?

    Answer: A business entity with no active operations used to conceal ownership or launder money

    A shell company is a legal entity with no genuine operations, employees, or assets that is often used to disguise the true ownership of assets or to facilitate money laundering by creating layers of transactions.

  6. What is a Suspicious Activity Report (SAR) and who is required to file it?

    Answer: A document financial institutions must file with FinCEN when they detect potentially illegal financial activity

    SARs are mandatory reports that financial institutions must file with the Financial Crimes Enforcement Network (FinCEN) when they identify transactions suspected of involving money laundering, fraud, or other financial crimes.

  7. Which U.S. government agency serves as the primary financial intelligence unit and processes Suspicious Activity Reports and Currency Transaction Reports?

    Answer: Financial Crimes Enforcement Network (FinCEN)

    FinCEN, a bureau of the U.S. Department of Treasury, serves as the U.S. Financial Intelligence Unit (FIU), collecting and analyzing financial data from SARs and CTRs to combat money laundering and terrorist financing.