PCI Financial Investigation & Asset Recovery Flashcards

What is the primary purpose of asset tracing in a fraud investigation?

Answer: To identify and locate assets that may be subject to recovery or forfeiture

Asset tracing identifies assets acquired through fraudulent means that may be recovered for victims or forfeited to the government.

Which financial document is most useful for identifying undisclosed income in a fraud investigation?

Answer: Bank statements

Bank statements reveal all deposits and withdrawals, making them essential for identifying income that was not reported or disclosed.

What is 'commingling of funds' in the context of financial investigations?

Answer: Mixing personal and business funds to obscure their origins

Commingling occurs when a person mixes personal and business funds, often used to disguise theft or embezzlement.

In financial fraud investigations, what does 'skimming' refer to?

Answer: Taking cash before it is recorded in the accounting system

Skimming is a form of fraud where cash is stolen before it enters the accounting system, making it difficult to detect through normal audits.

What is a Suspicious Activity Report (SAR) in financial investigations?

Answer: A report filed by financial institutions when they suspect money laundering or fraud

SARs are mandatory reports filed by financial institutions with FinCEN when they detect potentially illegal financial activity, and are valuable tools for investigators.

Which mechanism is commonly used to obtain financial records held in foreign jurisdictions?

Answer: Mutual Legal Assistance Treaties (MLATs)

MLATs are international agreements that allow countries to request and share evidence, including financial records, from foreign jurisdictions during investigations.