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

Beneficial ownership refers to the natural person(s) who ultimately own or exercise control over a legal entity, which FinCEN's CDD rule requires financial institutions to identify.

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

Financial institutions must file a SAR within 30 days of detecting suspicious activity, or 60 days if no suspect can be identified.

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

18 U.S.C. § 1956 is the federal money laundering statute that criminalizes financial transactions involving proceeds from specified unlawful activities.

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

A CMIR (FinCEN Form 105) must be filed when transporting more than $10,000 in currency or monetary instruments into or out of the United States.

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

Link analysis is used to trace the flow of funds by mapping connections between accounts, entities, and transactions in a money laundering scheme.

Treasury Enforcement Agent Exam Practice Test

Treasury Enforcement Agent Exam Practice Test

Treasury Enforcement Agent Exam Financial Crimes & Money Laundering Detection 3