FBI FBI Financial Crimes and Money Laundering

Question 1

What are the three recognized stages of money laundering?

Accepted Answer

Placement, Layering, Integration

Answer

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).

Question 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?

Accepted Answer

$10,000

Answer

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.

Question 3

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

Accepted Answer

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

Answer

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.

Question 4

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

Accepted Answer

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

Answer

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.

Question 5

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

Accepted Answer

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

Answer

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.

FBI Special Agent Test Practice Test

FBI Special Agent Test Practice Test

FBI FBI Financial Crimes and Money Laundering