Practice Test Geeks(ACFE) Association of Certified Fraud Examiners Practice Test
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Money Laundering Investigation Flashcards

7 cards from real ACFE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Money Laundering Investigation flashcards as text

  1. Which cryptocurrency characteristic makes it particularly attractive for the placement stage of money laundering?

    Answer: Peer-to-peer transactions can occur without a regulated financial intermediary

    Peer-to-peer crypto transactions can bypass traditional financial institutions, allowing funds to be moved without triggering BSA reporting requirements at the placement stage.

  2. A CFE reviewing bank records notices a customer deposits $9,500 in cash on Monday, $9,400 on Tuesday, and $9,800 on Wednesday at three different branches. This pattern suggests:

    Answer: Structuring to evade CTR filing requirements

    Multiple sub-threshold cash deposits across different branches over consecutive days is a textbook structuring pattern designed to avoid the $10,000 CTR trigger.

  3. The USA PATRIOT Act expanded BSA requirements to include which new category of financial institution in AML program obligations?

    Answer: Broker-dealers, mutual funds, and money services businesses

    The USA PATRIOT Act extended BSA AML program requirements to broker-dealers, mutual funds, money services businesses, and other non-bank financial institutions.

  4. In a Ponzi scheme money laundering investigation, early investor returns paid from new investor funds are best characterized as:

    Answer: Proceeds of wire fraud potentially subject to money laundering charges

    Payments to early Ponzi investors using funds from later investors constitute proceeds of wire or mail fraud, making subsequent transactions potential money laundering violations.

  5. Which international body maintains a list of 'high-risk jurisdictions subject to a call for action' that financial institutions use to assess AML risk?

    Answer: Financial Action Task Force (FATF)

    FATF publishes its 'black list' and 'grey list' of high-risk and non-cooperative jurisdictions, which financial institutions use to calibrate AML due diligence.

  6. A key investigative technique for identifying unreported income in a money laundering case is the net worth method, which works by:

    Answer: Comparing increases in net worth plus living expenses to known income sources

    The net worth method detects hidden income by measuring unexplained increases in wealth relative to reported income, a technique used by the IRS and CFEs.

  7. Under 31 U.S.C. § 5318(g), financial institutions that file SARs in good faith are protected from civil liability. This protection is commonly known as:

    Answer: Safe harbor provision

    The safe harbor provision protects financial institutions and their employees from civil liability for filing SARs, even if the reported activity turns out to be innocent.