ACAMS AML/CFT Risk and Methods 2

Question 1

Which money laundering method involves purchasing multiple monetary instruments in amounts just below the Currency Transaction Report (CTR) threshold?

Accepted Answer

Structuring

Answer

Structuring (also known as 'smurfing') involves breaking up large cash transactions into smaller amounts specifically to avoid triggering CTR filing requirements. It is a federal crime under the Bank Secrecy Act.

Question 2

In the context of AML, what does 'layering' primarily aim to achieve?

Accepted Answer

Disguising the audit trail between illicit funds and their source

Answer

Layering is the second stage of money laundering, designed to create a complex web of financial transactions that obscures the audit trail and makes tracing funds back to their criminal origin extremely difficult.

Question 3

Which of the following is a key red flag indicating potential money laundering through real estate?

Accepted Answer

Property is purchased with all-cash from a shell company with no apparent business purpose

Answer

All-cash purchases through opaque shell companies are a classic real estate money laundering indicator, as they allow criminals to obscure the true beneficial owner and inject illicit funds without bank scrutiny.

Question 4

What is 'trade-based money laundering' (TBML)?

Accepted Answer

Exploiting international trade transactions to disguise money laundering

Answer

TBML involves manipulating international trade transactions — such as over- or under-invoicing goods and services — to transfer value across borders and disguise the proceeds of crime.

Question 5

Which term describes the use of multiple financial institutions or accounts to conceal the source of illicit funds?

Accepted Answer

Cuckoo smurfing

Answer

Cuckoo smurfing is a technique where criminal proceeds are substituted for legitimate funds in cross-border transactions, so the money launderer's funds reach their destination while the legitimate customer's account appears to receive a normal transfer.

(ACAMS) Association of Certified Anti-Money Laundering Specialists Practice Test

(ACAMS) Association of Certified Anti-Money Laundering Specialists Practice Test

ACAMS AML/CFT Risk and Methods 2