ACFCS Practice Test QUESTIONS AND ANSWERS
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Your bank has recently received an online application for a new business account
from a company named Integral Operations, LLC. By reviewing the operating
agreement and other documents included in the application, you determine that
Integral is incorporated in the U.S. State of Wyoming. A review of the Wyoming
corporate registry online shows that Integral was formed 10 years ago. An initial
internet search finds no company website, and no further information on the
company. The registered agent contact information and address on the company's
most recent annual filing is for Biz Management Solutions, a corporate services
provider. Concerned that ACE Operations appears to be a shelf corporation, you
are conducting further due diligence on the company's ownership structure.
Which is the most appropriate next step to take?
Your bank has recently received an online application for a new business account
from a company n - ANSWER B) Request a company organizational chart that
includes members, directors, and other stakeholders.
You are the compliance/risk officer at ABC Bank. Senior management recently
released plans to issue the bank's first prepaid cards in the coming year. You are
aware that drug trafficking cartels are active in regions in which your institution
operates, and recent law enforcement cases have indicated that cartels may be
using prepaid cards to move value across borders between your country and a
neighboring country. As you evaluate the product team's proposed card features,
which control may best mitigate the risk inherent in prepaid cards?
A) Limit cash withdrawals to certain merchant category codes (MCCs).
B) Impose low dollar limits on cash loads and withdrawals.
, C) Limit the number of loads within a specific time frame.
D) Control the number of accounts allowed per person. - ANSWER B) Impose
low dollar limits on cash loads and withdrawals.
You are investigating a Vietnamese clothing manufacturer that is allegedly
laundering money for a human trafficking organization. Deposits to the
manufacturer's bank account totaled $4.5 million (USD) for the year 2012. All
deposits originated from a single source, a shipping corporation in Panama that
makes payments through a bank account in Riga, Latvia. Payments are received
through wire transfers. They are always in varying amounts of dollars and cents
and the SWIFT messaging always states that the payments are for a line of men's
suits. Which is LEAST likely to be a red flag for money laundering?
A) The owner of the business who is the sole signatory of the bank account
resides in another country.
B) The shipping company is located in Panama, but payments originate from a
Latvian bank in Riga.
C) Payments to the manufacturer are only received from a single customer in
another industry.
D) The payments are in - ANSWER D) The payments are in varying amounts
and their purpose is always the same in the SWIFT messaging.
Uniform Solutions is a wholesale clothing maker and retailer that produces and
sells uniforms to government agencies and large institutions. Recently, the
VERIFIED BY EXPERT 100% CORRECT
Your bank has recently received an online application for a new business account
from a company named Integral Operations, LLC. By reviewing the operating
agreement and other documents included in the application, you determine that
Integral is incorporated in the U.S. State of Wyoming. A review of the Wyoming
corporate registry online shows that Integral was formed 10 years ago. An initial
internet search finds no company website, and no further information on the
company. The registered agent contact information and address on the company's
most recent annual filing is for Biz Management Solutions, a corporate services
provider. Concerned that ACE Operations appears to be a shelf corporation, you
are conducting further due diligence on the company's ownership structure.
Which is the most appropriate next step to take?
Your bank has recently received an online application for a new business account
from a company n - ANSWER B) Request a company organizational chart that
includes members, directors, and other stakeholders.
You are the compliance/risk officer at ABC Bank. Senior management recently
released plans to issue the bank's first prepaid cards in the coming year. You are
aware that drug trafficking cartels are active in regions in which your institution
operates, and recent law enforcement cases have indicated that cartels may be
using prepaid cards to move value across borders between your country and a
neighboring country. As you evaluate the product team's proposed card features,
which control may best mitigate the risk inherent in prepaid cards?
A) Limit cash withdrawals to certain merchant category codes (MCCs).
B) Impose low dollar limits on cash loads and withdrawals.
, C) Limit the number of loads within a specific time frame.
D) Control the number of accounts allowed per person. - ANSWER B) Impose
low dollar limits on cash loads and withdrawals.
You are investigating a Vietnamese clothing manufacturer that is allegedly
laundering money for a human trafficking organization. Deposits to the
manufacturer's bank account totaled $4.5 million (USD) for the year 2012. All
deposits originated from a single source, a shipping corporation in Panama that
makes payments through a bank account in Riga, Latvia. Payments are received
through wire transfers. They are always in varying amounts of dollars and cents
and the SWIFT messaging always states that the payments are for a line of men's
suits. Which is LEAST likely to be a red flag for money laundering?
A) The owner of the business who is the sole signatory of the bank account
resides in another country.
B) The shipping company is located in Panama, but payments originate from a
Latvian bank in Riga.
C) Payments to the manufacturer are only received from a single customer in
another industry.
D) The payments are in - ANSWER D) The payments are in varying amounts
and their purpose is always the same in the SWIFT messaging.
Uniform Solutions is a wholesale clothing maker and retailer that produces and
sells uniforms to government agencies and large institutions. Recently, the
