ACAMS Trade-Based Money Laundering (TBML)

Question 1

What is the primary definition of trade-based money laundering (TBML)?

Accepted Answer

Using trade transactions to move value and disguise criminal proceeds

Answer

TBML involves manipulating trade transactions—through over/under-invoicing, multiple invoicing, or falsely described goods—to move value and legitimize illicit funds.

Question 2

Which TBML technique involves exporting goods and invoicing them at a price higher than the true market value?

Accepted Answer

Over-invoicing

Answer

Over-invoicing allows the exporter to receive more funds than the goods are worth, effectively transferring value from the importing country to the exporting country.

Question 3

A US bank notices a customer is receiving multiple payments from different overseas buyers for the same shipment of electronics. This is most indicative of which TBML red flag?

Accepted Answer

Multiple invoicing

Answer

Multiple invoicing involves issuing more than one invoice for a single shipment, enabling the seller to collect payment multiple times for the same goods.

Question 4

The Black Market Peso Exchange (BMPE) primarily originated from which illicit industry?

Accepted Answer

Drug trafficking

Answer

BMPE originated as a method for Colombian drug traffickers to convert US dollar proceeds into Colombian pesos without moving currency across borders directly.

Question 5

Which international body has issued guidance specifically addressing TBML typologies and red flags?

Accepted Answer

Financial Action Task Force (FATF)

Answer

FATF issued a landmark report on TBML in 2006 and subsequent guidance identifying key typologies, red flags, and recommended controls.

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

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

ACAMS Trade-Based Money Laundering (TBML)