ACAMS Practice Latest Questions and Answers 100% Correct.
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Course
ACAMS
Institution
ACAMS
Dirty money, derived from criminal activities of
Belgian Criminal A, is sent to a foreign bank account
of Corporation B. Then in Belgium, a new investment Company C is incorporated.
Criminal A is appointed as a director of Company C. Company C borrows money from
the foreign Company B and buys r...
ACAMS Practice Questions
Dirty money, derived from criminal activities of
Belgian Criminal A, is sent to a foreign bank account
of Corporation B. Then in Belgium, a new investment Company C is incorporated.
Criminal A is appointed as a director of Company C. Company C borrows money from
the foreign Company B and buys real estate in Belgium. The real estate is rented to
third parties. Director (Criminal) A also rents an apartment in the building. With the
funds generated by the rent, Company C pays off
the loan to Corporation B, and the salary of Director A. Criminal A now converted his
dirty money in legal funds. This laundering method is commonly referred to as what?
A. Offsetting real estate transactions.
B. Loan back.
C. Cuckoo smur ng.
D. Loan manipulation. - ✔️✔️B
Which of the following is the most common method of laundering money through a legal
money services business?
A. Purchasing structured money instruments.
B. Smuggling bulk-cash.
C. Transferring funds through Payable Through Accounts (PTAs).
D. Exchanging Colombian pesos on the black market. - ✔️✔️A
The three stages of money laundering are:
A) Layering, Placement, Refining
B) Placement, Refining, Integration
C) Refining. Integration, Layering
D) Integration, Layering, Placement - ✔️✔️D
Which of the following would be satisfactory elements of an Anti-Money Laundering
Program?
I - A CAMS certified employee in the Investigations Unit writes up a few policies and
procedures and posts them on the department bulletin board.
,II - Shortly after attaining their CAMS certification, the individual provides AML training
to the Investigations Unit.
III - The CAMS certified individual routinely reviews the work of the Investigations Unit.
IV - The CAMS certified individual assumes the responsibility of a compliance
watchdog.
A) All of the above would be satisfactory
B) II and IV would be satisfactory
C) I and III would be satisfactory
D) None of the above would be satisfactory
The correct answer would be "D - None of the above would be satisfactory."
I - The AML program must be approved by the Board of Directors.
II - An AML training program is required of all personnel (and contrac - ✔️✔️D
In determining what risks a customer poses, which consideration should NOT be a
major factor?
A) Where the customer resides or where the business is headquartered.
,B) What is the size of your financial institution.
C) What occupation or type of business does the customer derive their income from.
D) What are the customer's ethnic heritage, sexual orientation and political beliefs.
The correct answer would be "D." The customer's ethnic heritage, sexual orientation
and political beliefs are more discriminatory factors, and while they may help frame the
context of certain transactions, they should not be a major factor in assessing risk.
The size of your financial institution is a critical element in determining the level of
sensitivity to risks for certain customers.
The USA PATRIOT Act was passed in:
A) 1970
B) 1985
C) 2001
D) 2007 - ✔️✔️C
, Analysis questions require one to synthesize information, arrive at solutions and/or
evaluate the usefulness of solutions. One - ✔️✔️D
In general, the three phases of money laundering are said to be: Placement:
A. Structuring and manipulation.
B. Layering and integration.
C. Layering and smur ng.
D. Integration and in ltration. - ✔️✔️B
Which statement is true?
A. Bust-out schemes are popular in creating large bankruptcy frauds where businesses
secure increasing loans in excess of the actual value of the company or property and
then run with the money, leaving the lender to foreclose and take a substantial loss.
B. Cuckoo smur ng is a signi cant money laundering technique identi ed by the
Financial Action Task Force, where a form of structuring uses nested accounts with
shell banks in secrecy havens.
C. In its 40 Recommendations, the FATF issued a list of "designated categories of
offense" that asserts crimes for a money laundering prosecution.
D. E-cash is not attractive to the money launderer because it cannot be completely
anonymous and does not allow for large amounts to be "transported" quickly and easily.
- ✔️✔️A
Which three of the following is an indication of possible money laundering in an
insurance industry scenario?
A. Insurance products sold through intermediaries, agents or brokers.
B. Single-premium insurance bonds, redeemed at a discount.
C. Policyholders who are unconcerned about penalties for early cancellation.
D. Policyholders who make full use of the "free look" period. - ✔️✔️BCD
Which two activities are typically associated with the black market peso exchange
(BMPE) money laundering system?
A. Converting illicit drug proceeds from dollars or Euros to Colombian pesos.
B. Converting illicit drug proceeds from Colombian pesos to dollars or Euros.
C. Facilitating purchases by Colombian importers of goods manufactured in the United
States or Europe through peso brokers.
D. Facilitating purchases by European or U.S. importers of goods manufactured in
Colombia through peso brokers. - ✔️✔️AC
What is the Right of Reciprocity in the eld of international cooperation against money
laundering?
A. The legal principle that nancial institutions that have referred customers to other
nancial institutions can share information about these customers with the other
institutions.
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