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 financial instrument is most commonly associated with the 'smurfing' technique in money laundering?

    Answer: Multiple cash deposits below the CTR reporting threshold

    Smurfing involves breaking large sums into smaller deposits below the $10,000 Currency Transaction Report threshold to avoid detection.

  2. Under the Bank Secrecy Act, what is the maximum civil penalty per willful violation for failing to file a Currency Transaction Report?

    Answer: $100,000

    The BSA provides for civil penalties of up to $100,000 per willful violation for failure to file CTRs.

  3. A fraudster purchases lottery tickets at face value, then claims to have 'won' the lottery to explain a large cash windfall. This technique is called:

    Answer: Layering

    Purchasing winning lottery tickets from actual winners to explain illicit funds is a form of layering that creates a legitimate-appearing source of income.

  4. What does the term 'beneficial owner' mean in the context of anti-money laundering regulations?

    Answer: The natural person who ultimately owns or controls a legal entity

    A beneficial owner is the natural person(s) who ultimately owns or controls a legal entity, which FinCEN's CDD rule requires financial institutions to identify.

  5. Which stage of the money laundering cycle involves moving funds through complex financial transactions to disguise their origin?

    Answer: Layering

    Layering is the second stage of money laundering, designed to put distance between criminal proceeds and their source through complex transactions.

  6. An investigator notices a car dealership accepting large cash payments for vehicles and then depositing only small amounts over time. This is an example of:

    Answer: Structuring using a business front

    Using a cash-intensive business to break up and deposit illicit funds in small increments is structuring facilitated through a business front.

  7. Which of the following is a key indicator of trade-based money laundering (TBML)?

    Answer: Over- or under-invoicing of goods and services

    Over- or under-invoicing is the primary TBML technique, allowing the transfer of value between parties while disguising the true nature of funds.