Treasury Enforcement Agent Exam Financial Crimes & Money Laundering Detection

Question 1

Which federal law requires financial institutions to file a Suspicious Activity Report (SAR) when a transaction involves $5,000 or more and is suspected to involve criminal activity?

Accepted Answer

Bank Secrecy Act

Answer

Patriot Act

Answer

Gramm-Leach-Bliley Act

Answer

Foreign Corrupt Practices Act

Question 2

What is 'smurfing' in the context of financial crimes?

Accepted Answer

Breaking large cash deposits into smaller amounts to avoid reporting thresholds

Answer

Using shell companies to hide assets

Answer

Transferring funds through multiple foreign banks

Answer

Using cryptocurrency to obscure transaction trails

Question 3

A Currency Transaction Report (CTR) must be filed for cash transactions exceeding which amount?

Accepted Answer

$10,000

Answer

$5,000

Answer

$25,000

Answer

$50,000

Question 4

Which stage of money laundering involves disguising the illegal origins of funds by passing them through complex financial transactions?

Accepted Answer

Layering

Answer

Placement

Answer

Integration

Answer

Structuring

Question 5

Which agency is primarily responsible for collecting and analyzing financial intelligence to combat money laundering in the US?

Accepted Answer

FinCEN

Answer

FBI

Answer

OFAC

Answer

IRS Criminal Investigation

Question 6

What is a 'shell company' as used in financial crime schemes?

Accepted Answer

A legal entity with no real operations used to obscure asset ownership

Answer

A company that sells only digital products

Answer

A legitimate small business used as a front

Answer

A company registered offshore for tax purposes