OIC Financial Crimes & Fraud Investigation

Question 1

Which federal law requires financial institutions to report cash transactions exceeding $10,000 to help detect money laundering?

Accepted Answer

The Bank Secrecy Act

Answer

The Patriot Act

Answer

The Financial Crimes Enforcement Act

Answer

The Money Laundering Control Act

Question 2

What is 'structuring' in the context of financial crimes?

Accepted Answer

Breaking large cash deposits into smaller ones to avoid reporting thresholds

Answer

Organizing the hierarchy of a criminal enterprise

Answer

Creating shell companies to hide assets

Answer

Filing false tax returns across multiple years

Question 3

What is a Suspicious Activity Report (SAR) used for?

Accepted Answer

Reporting suspected financial crimes to FinCEN

Answer

Documenting use-of-force incidents by officers

Answer

Recording surveillance observations in the field

Answer

Notifying supervisors of officer misconduct

Question 4

Which of the following best describes money laundering?

Accepted Answer

The process of making illegally obtained funds appear legitimate

Answer

Counterfeiting currency to introduce it into circulation

Answer

Forging financial documents to obtain credit

Answer

Stealing funds electronically from bank accounts

Question 5

During the 'placement' stage of money laundering, what does the criminal typically do?

Accepted Answer

Introduces illegal cash into the financial system

Answer

Creates shell companies in offshore jurisdictions

Answer

Converts laundered funds into luxury assets for personal use

Answer

Transfers funds through multiple international accounts

Question 6

What federal offense does 18 U.S.C. § 1344 define?

Accepted Answer

Bank fraud

Answer

Wire fraud

Answer

Securities fraud

Answer

Mail fraud

Question 7

Which agency is the primary federal agency responsible for investigating financial crimes such as bank fraud and money laundering?

Accepted Answer

The Federal Bureau of Investigation (FBI)

Answer

The Drug Enforcement Administration (DEA)

Answer

The Securities and Exchange Commission (SEC)

Answer

The Internal Revenue Service Criminal Investigation Division (IRS-CI)