Treasury Enforcement Agent Exam Risk Assessment & Management 2

Question 1

A Treasury Enforcement Agent notices that a money services business has been processing large volumes of transactions just below the $10,000 Currency Transaction Report threshold. This pattern is best described as:

Accepted Answer

Structuring (smurfing)

Answer

Structuring, also known as smurfing, is the deliberate breaking up of large transactions into smaller amounts to avoid CTR filing requirements.

Question 2

When conducting a risk-based examination of a financial institution, which factor would MOST increase the institution's money laundering risk rating?

Accepted Answer

Significant cash-intensive business clientele in high-risk geographic areas

Answer

Cash-intensive businesses combined with high-risk geographic locations significantly elevate money laundering risk because cash transactions are harder to trace and certain regions have higher rates of financial crime.

Question 3

Under FinCEN guidance, a Suspicious Activity Report (SAR) must generally be filed within how many days of detecting a suspicious transaction?

Accepted Answer

30 calendar days

Answer

FinCEN regulations require financial institutions to file a SAR within 30 calendar days of initially detecting a suspicious transaction.

Question 4

A risk matrix in financial crime investigations typically plots which two dimensions?

Accepted Answer

Likelihood of occurrence and potential impact

Answer

A risk matrix maps likelihood of a risk occurring against its potential impact to prioritize investigative and mitigation resources.

Question 5

Which of the following best describes the 'layering' stage of money laundering?

Accepted Answer

Moving funds through complex transactions to obscure their illegal origin

Answer

Layering involves creating complex layers of financial transactions to distance illicit funds from their source and obscure the audit trail.

Treasury Enforcement Agent Exam Practice Test

Treasury Enforcement Agent Exam Practice Test

Treasury Enforcement Agent Exam Risk Assessment & Management 2