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33 Cards in this Set
- Front
- Back
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Which of the following best describes the bank secrecy act currency transaction report (CTR) requirements for us financial institutions? A. All currency transactions over $5,000 require a CTR. B.All currency transactions over $10,000 require a CTR C. All check or wire transactions over $10,000 require a CTR D. All transactions under $5,000 require a CTR |
All currency transactions over $10,000 require a CTR |
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Financial institutions, as defined by the USA Patriot Act, include not only commercial Banks, but also insurance companies and travel agencies. |
True |
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The operation of alternative remittance systems involves inherently illegal activities. |
False |
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XYZ Bank, a US company, has a money laundering compliance program that provides for internal controls and procedures to prevent money laundering, money laundering awareness training, and a regular independent audit function to test the banks procedures. If these are the complete the extent of XYZ anti-money laundering measures, which of the following basic elements is missing from the organization's anti-money-laundering program? A. Report of all Bank transfers over $50,000 to the US federal government B. The designation of a money laundering compliance officer C. Prohibition of consumer cash deposits over $10,000 per day D. A mandatory 30-day waiting. Before cash deposits can be transferred |
The designation of a money laundering compliance officer |
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Overtime, Herman stole $500,000 in cash from his employer. He deposited the cash in small increments into a bank account to avoid reporting requirements. He didn't transfer the stolen funds into an overseas account and proceeded with several additional transfers and fake loans to foreign entities that he controlled. Finally, he move the funds back home, disguising them as profits from Investments. Which of the following stages of money laundering was Herman performing when he engaged in transfers and fake Lawns to foreign entities. |
Layering |
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Which of the following statements concerning the u.s. bank secrecy Act is most accurate? A. It imposes record-keeping requirements on financial institutions for large, unusual, and suspicious transactions. B. Its primary purpose is to require the federal government to obtain a warrant to access financial information. C. It requires financial institutions to report all transactions to the federal government. D. Primary purpose is to prevent third parties from accessing financial data held by financial institutions. |
It imposes record-keeping requirements on financial institutions for large, unusual, and suspicious transactions. |
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In alternative remittance systems, which of the following types of information are typically found in the ledgers that the Brokers use to keep track of amounts owed to each other? A. The names of the sender's B. Bank account numbers of the senders and receivers C. The names of the receivers D. None of these answers are correct |
None of these answers are correct |
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Which of the following accurately describes the requirements for filing a report of foreign bank and financial accounts (FBAR) in the United States? A. An FBAR must only be filed if any single foreign Financial account owned or controlled by a citizen has a balance over $10,000. B. An FBAR must be filed is aggregate balance of all foreign Financial accounts owned or controlled by a citizen is over $10,000. C. An FBAR must only be filed if any single foreign Financial account owned or controlled by a citizen has a balance over $25,000. D. An FBAR must be filed is aggregate balance of all foreign Financial accounts owned or controlled by a citizen is over $25,000. |
An FBAR must be filed is aggregate balance of all foreign Financial accounts owned or controlled by a citizen is over $10,000. |
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Which of the following is not a minimum requirement of a written anti-money laundering (AML) compliance program? A. Provide training on an ongoing basis for all personnel B. Provide for the immediate termination of any employee involved in avoiding the jurisdictions reporting requirements C. Establish a system of internal policies, procedures, and controls to ensure ongoing compliance D. Provide for independent testing of compliance by internal Auditors and or outside examiners |
Provide for the immediate termination of any employee involved in avoiding the jurisdictions reporting requirements |
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Owen, a US resident, receives a gift from a good friend for $15,000 in cash. Owen must file a form 8300 (currency report) with the financial crime enforcement Network (FinCEN) and the Internal Revenue Service. |
False |
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A money laundering scheme cannot be successful until the _____ is eliminated or made so complex that individual steps cannot be easily traced. |
Paper trail |
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In an insurance prepayment scheme, a money launderer purchases life insurance or a similar policy with a Redemption provision and redeems the policy with the intent to make the income appear legitimate. |
False |
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Which of the following are required to file a suspicious activity report with FinCEN if they suspect customers are laundering or attempting to launder funds through their organization? A. Casinos B. Securities brokers C. Banks D. All of these answers are correct |
All of these answers are correct |
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A criminal wants to launder money by sending it to a co-conspirator in a foreign country. Rather than sending funds through a financial institution, the party pays broker A the funds, and broker A then directs broker B, who lives in the foreign country, to pay the co-conspirator. Later, broker A offsets his debt to broker B by paying someone at the direction of broker B. Which of the following best describes this payment scheme? A. Back-to-back loan B. Alternative remittance system C. Prepaid access D. Money Services business |
Alternative remittance system |
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If a suspect has deposited a large number of bank checks, each for less than 10,000 ( the jurisdictions threshold for mandatory reports on currency transactions), this could be an indication of which of the following? A. Smurfing/ structuring operation B. Forged check scheme C. Counterfeit checks scheme D. Entrapment scheme |
Smurfing / structuring operation |
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Money laundering is the disguising of the existence, nature, Source, control, beneficial ownership, location, and disposition of property derived from criminal activity. |
True |
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Which of the following best describes a core function of the u.s. office of foreign assets control? A. To ensure that foreign corporate entities with a presence in the United States comply with Securities regulations B. To maintain the specially designated Nationals and blocked persons (SDN) list and enforce its sanctions C. To provide model anti-money laundering statutes for all member countries to adopt D. To serve as the primary revenue collection agency for u.s. Citizens with foreign income and assets |
To maintain the specially designated Nationals and blocked persons (SDN) list and enforce its sanctions |
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The placement stage of the money laundering process occurs when a criminal first steals or obtains illicit proceeds. |
False |
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The three stages of money laundering are |
1. Placement 2. Layering, and 3. Integration |
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Which of the following is an example of the use of a digital currency? A. Credit card transactions B. Bitcoin transactions C. Wire transfers D. All of these answers are correct |
Bitcoin transactions |
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The _____ is an office within the department of the treasury charged with administering and enforcing us sanction policies against targeted foreign organizations and individuals that sponsor terrorism and international narcotics traffickers. |
Office of foreign assets control |
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Of the choices below, which is the proper sequence of Cycles any money laundering process? A. Integration, structuring, and placement. B. Layering, placement, and integration. C. Placement, layering, and integration. D. Placement, Bank complicity, and structuring. |
Placement, layering, and integration. |
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A criminal is attempting to launder stolen funds. To confuse the money Trail for the funds, he purchases an expensive insurance contract with the illicit funds, cancel the policy shortly after, and receives a refund in a foreign bank account. Which of the following best describes the criminals money laundering scheme?
A. Redemption scheme B. Integration scheme C. Prepayment scheme D. Cancel policy scheme |
Cancel policy scheme |
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A person is required to file a CMIR (Report of International Transportation of Currency or Monetary Instrument) only if he is transporting money OUT of the United States. |
False |
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Which of the following statements concerning mobile payments is false? A. In most countries, mobile phone accounts they can be used to send funds or purchase items are regulated in the same way as bank accounts. B. Money launderers often using mobile phone accounts to send funds to foreign accounts or otherwise layer illicit assets. C. Mobile payments allow for the money launderer to potentially remain Anonymous if a prepaid phone is used. D. Mobile payments or transactions are those facilitated through the use of an account associated with a mobile phone. |
In most countries, mobile phone accounts that can be used to send funds or purchase items are regulated in the same way as bank accounts. |
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Page, a certified fraud examiner, he's investigating a suspects source of income. Page notices that funds available to the suspect include the suspects interest in a restaurant / bar. Paige has surveilled the establishment several times and notices that the business has very few customers, even during peak times. Yet the income reported from this restaurant / bar is phenomenal. Of the following list, in which money laundering scheme might the suspect be involved? A. Bankruptcy scheme B. Front business scheme C. Trade-based laundering scheme D. Alternative remittance system scheme |
Front business scheme |
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Transactions involving money service businesses (MSBs) generally have a lower money-laundering risk than those at other financial institutions because MSBs have more stringent regulatory requirements. |
False |
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One of the most common methods of laundering funds is to filter the money through a front business. A front business can be useful to a criminal for which of the following reasons? I. It provides a safe place for organizing and managing criminal activity II. It provides a base of operations where they comings and goings of large numbers of people will not arouse undue suspicion. III. It is an easy way for the criminal to avoid paying taxes on illegal sources of revenue. IV. The front that does the legitimate business provides cover for delivery and transportation related to illegal activity. |
I, II, and IV |
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Which of the following statutes is the heart of the money laundering control effort in the United States? A. Crime Control Act B. Bank secrecy Act C. Money laundering Crime Control Act D. Bank recording Act |
Bank secrecy Act |
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Which of the following is an important element of a US financial institutions anti-money-laundering program? A. Ongoing training for awareness of money laundering. B. Designation of a money laundering compliance officer. C. Development of procedures to prevent money laundering. D. All of these answers are correct |
All of these answers are correct |
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A fraud examiner discovers that Fred, a fraud suspect in the United States, has made dozens of cash deposits over the last few months into a bank account. None of the deposits have been $10,000 or more, and none of the deposits have been below $8,500, either. Based on this information, which of the following schemes is Fred most likely committing? A. Channel stuffing B. Check tampering C. Sizing currency transactions D. Smurfing / structuring |
Smurfing / structuring |
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The stage in which money laundering schemes are most often detected is called: A. Washing B. Placement C. Layering D. Integration |
Placement |
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Which of the following statements concerning currency reporting requirements in the United States is most accurate? A. Non-financial organizations and individuals are not required to report any instances where they receive over $10,000 or more in cash. B. Only banks are required to report currency transactions over $10,000 to US federal government. C. Non Financial organizations and individuals are required to report any receipt of currency over $10,000 in the course of their trade or business using IRS form 8300. D. Non-financial organizations are required to report all currency and non currency transactions over $10,000 in the course of their trade or business to the federal government using IRS form 8300. |
Non Financial organizations and individuals are required to report any receipt of currency over $10,000 in the course of their trade or business using IRS form 8300. |
