Treasury Enforcement Agent Exam Financial Crimes & Money Laundering Detection 3

Question 1

Which of the following best defines 'beneficial ownership' in the context of anti-money laundering regulations?

Accepted Answer

The individual(s) who ultimately own or control a legal entity

Answer

The registered agent of a corporation

Answer

The bank that holds a company's primary accounts

Answer

The attorney who incorporates a business

Question 2

A Suspicious Activity Report (SAR) filed with FinCEN must generally be submitted within how many days of detecting suspicious activity?

Accepted Answer

30 days

Answer

15 days

Answer

60 days

Answer

90 days

Question 3

Which federal statute specifically criminalizes engaging in financial transactions with proceeds from specified unlawful activities?

Accepted Answer

18 U.S.C. § 1956 (Money Laundering Statute)

Answer

31 U.S.C. § 5316 (CMIR)

Answer

18 U.S.C. § 1343 (Wire Fraud)

Answer

26 U.S.C. § 7201 (Tax Evasion)

Question 4

What is the primary purpose of a Currency and Monetary Instruments Report (CMIR)?

Accepted Answer

To declare cash or monetary instruments over $10,000 when entering or leaving the US

Answer

To report large wire transfers between foreign banks

Answer

To notify FinCEN of large domestic cash transactions

Answer

To report foreign bank account holdings annually

Question 5

In a money laundering investigation, which type of analysis involves tracing the flow of funds through multiple accounts and transactions?

Accepted Answer

Link analysis

Answer

Net worth analysis

Answer

Bank deposit analysis

Answer

Source and application of funds analysis

Question 6

Real estate transactions are vulnerable to money laundering primarily because:

Accepted Answer

They can be used to park large sums and generate apparently legitimate income

Answer

They require extensive government reporting

Answer

Real estate agents are required to file SARs

Answer

Property values are easy to verify independently