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ACAMS Study Guide Practice Questions with Solutions, Exams of Nursing

The College of New Jersey (TCNJ)Nursing

A set of practice questions and answers related to the acams (association of certified anti-money laundering specialists) certification exam. It covers various aspects of anti-money laundering (aml) and counter-terrorism financing (cft) regulations, including money laundering techniques, risk assessment, due diligence, and international cooperation. The questions are designed to test knowledge and understanding of aml/cft principles and practices.

Typology: Exams

2024/2025

Available from 02/07/2025

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⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ
⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ
⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ
⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ
⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ
ACAMS Study Guide Practice Questions
with solutions
εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸ ⪛⪴⪴⪷⪱⪘⪞⪴⪸
εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸ ⪛⪴⪴⪷⪱⪘⪞⪴⪸
εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸ ⪛⪴⪴⪷⪱⪘⪞⪴⪸
Which of the following is the most common method of laundering money
through a legal money services business?
A. Exchanging currency and remitting money
B. Smuggling bulk cash
C. Transferring funds through payable through accounts (PTAs)
D. Exchanging Colombian pesos on the black market - correct answer ✔a
In general, the three phases of money laundering are said to be: placement and
A. structuring and manipulation.
B. layering and integration.
C. layering and smurfing.
D. integration and infiltration. - correct answer ✔b
Which statement is true?
A. Systemic weaknesses in free trade zones include inadequate AML/CFT
safeguards, minimal
oversight by local authorities and weak procedures to inspect goods.
B. Cuckoo smurfing is a significant money laundering technique identified by the
Financial Action
Task Force, wherein a form of structuring uses nested accounts with shell banks
in secrecy havens.
⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ
⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ
⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ
⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ
⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ
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Partial preview of the text

Download ACAMS Study Guide Practice Questions with Solutions and more Exams Nursing in PDF only on Docsity!

ACAMS Study Guide Practice Questions

with solutions

⪛⪴⪴⪷⪱⪘⪞⪴⪸ εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ ⪛⪴⪴⪷⪱⪘⪞⪴⪸ εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ ⪛⪴⪴⪷⪱⪘⪞⪴⪸ εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ

Which of the following is the most common method of laundering money

through a legal money services business?

A. Exchanging currency and remitting money

B. Smuggling bulk cash

C. Transferring funds through payable through accounts (PTAs)

D. Exchanging Colombian pesos on the black market - correct answer ✔a

In general, the three phases of money laundering are said to be: placement and

A. structuring and manipulation.

B. layering and integration.

C. layering and smurfing.

D. integration and infiltration. - correct answer ✔b

Which statement is true?

A. Systemic weaknesses in free trade zones include inadequate AML/CFT

safeguards, minimal

oversight by local authorities and weak procedures to inspect goods.

B. Cuckoo smurfing is a significant money laundering technique identified by the

Financial Action

Task Force, wherein 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. - correct

answer ✔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 redeem the policy within the free look period - correct

answer ✔b, c, d

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 - correct answer ✔a & c

B. PEPs have significantly greater exposure to the politically corrupt funds,

including accepting bribes or misappropriating government funds.

C. PEPs are foreign customers who inherently present additional risk as they are

engaged in crossborder transactions.

D. PEPs generally do not pose enhanced risks to an institution due to their

political standing; rather, PEPs increase the prestige of an institution. - correct

answer ✔b

In 2014, the Wolfsberg Group published its Anti-Money Laundering Principles

for Correspondent Banking. Which three of the following elements are

recommended to be included in the due diligence of

a correspondent banking client?

A. The geographic risk

B. The ownership and management structure

C. The résumé of the compliance officer

D. The customer base - correct answer ✔a, b & d

A new customer approaches a bank to open a commercial account. The

customer provides an address for the account located across the city from the

branch. When asked by the account representative if the customer requires any

additional banking services, the customer responds that she is also interested in

opening a personal investment account. The account representative refers the

customer to the broker-dealer. The customer tells the firm representative she

has never had a brokerage account before and has a few questions about how

an investment account works. The customer asks how deposits can be made

into her account, if there are any reporting requirements, and how to go about

moving balances out of the account using wire transfers. No questions are asked

about fees associated with these transactions. Which three items would be

considered suspicious?

A. The customer asks many questions about the brokerage account but - correct

answer ✔a, c & d

Trade-based money laundering requires the ability to

A. over- or under-invoice the goods.

B. sell the imported goods for as little as possible.

C. use goods that do not need to be declared.

D. avoid the use of high-value assets such as luxury cars or boats. - correct

answer ✔a

Which of the following statements is true? Correspondent banking is most

vulnerable to money laundering when the correspondent account is

A. maintained for foreign financial institutions that are banks.

B. not used to provide services directly to third parties.

C. maintained for a foreign bank that does not have a physical presence in any

country.

D. maintained for a foreign private bank that is publicly traded and is a qualified

intermediary. - correct answer ✔c

Which statement is true?

A. Lawyers in FATF member countries generally cannot be used to serve as

formation agents to set up trusts, front companies or shell companies.

B. Lawyers and similar professional gatekeepers are called money services

businesses.

C. Lawyers generally cannot be used to act as nominee shareholders for a

beneficial owner.

D. UN Security Council Resolution on Correspondent Banking - correct answer

✔a

Which were the Basel Committee's two main motivations to encourage strong

know your customer programs in its paper Customer Due Diligence for Banks?

(Choose two)

A. Mirror FATF's KYC recommendations.

B. Meet European Union guidelines.

C. Protect the safety and soundness of banks.

D. Protect the integrity of banking systems. - correct answer ✔c & d

What is the definition of a predicate offense?

A. Lawful or unlawful activity that involves willful blindness, and if there is an

international element to

the crime, can lead to a suspicious activity report

B. Unlawful activity whose proceeds, if involved in the transaction, can give rise

to prosecution for the

crime of money laundering

C. An interface that is the underlying segment of a suspicious transaction

monitoring system

D. A specified unlawful activity that is committed through concentration

accounts deceiving

customers that are not directly related to the account - correct answer ✔b

What is considered a beneficial owner of an account?

A. A person or entity who has direct signatory authority over an account and

whose name appears on

the account

B. A person or entity who is ultimately entitled to the funds in the account, even

though his or her

name may not appear on the account

C. A person or entity who is the originator and the destination of most (but not

all) transactions

conducted within the account but who does not ultimately control such funds

D. A person or entity who is a gatekeeper, has the legal title to the account and

typically transfers the

funds to a trust - correct answer ✔b

FinCEN's Advisory to U.S. Financial Institutions on Promoting a Culture of

Compliance, published in 2014, listed six areas of emphasis. Which three areas

are included in that list?

A. Leadership should be engaged.

B. Information should be shared throughout the organization.

C. Leadership and staff should understand how their BSA reports are used.

D. The organization must have an appropriately qualified compliance officer. -

correct answer ✔a, b & d

Which of the following should a national legislature consider when criminalizing

money laundering in line with the CFATF 19 Recommendations? (Choose three.)

A. Defining money laundering based on the model laws issued by the

Organization of American States

B. Permitting forfeiture in all cases following conviction

C. Indicating whether it is relevant that a predicate offense may have been

committed outside the local jurisdiction

The Egmont Training Group published FIUs in Action: 100 Sanitized Cases. Which

two of the items noted below were listed in the report as part of the six most

frequent indicators of money laundering?

A. Defensive stance to questioning

B. Use of precious stones for moving value

C. Unrealistic wealth compared to client profile

D. Significant use of prepaid cards - correct answer ✔a & c

In which stage of money laundering would you classify depositing small

amounts of cash into several

related accounts?

A. Integration

B. Structuring

C. Placement

D. Construction - correct answer ✔c

In which stage of money laundering would you classify the use of laundered

funds to purchase high-value assets and luxury items?

A. Integration

B. Structuring

C. Placement

D. Construction - correct answer ✔a

In most money laundering international standards, it is stated that

A. financial institutions are not responsible for money laundering or suspicious

transactions taking place within their accounts until the government places the

customer on a watch list.

B. informing customers that their accounts and/or transactions are the subject

of an AML investigation is not punishable.

C. the dirty money undergoing money laundering will not be confiscated

because of privacy laws.

D. the institution should identify the beneficial owner(s) of the account. -

correct answer ✔d

The tactic in which individuals make multiple deposits in small quantities to

avoid detection is called

A. paralleling.

B. integration.

C. investing.

D. structuring. - correct answer ✔d

In which case might a suspicious transaction report not be necessary?

A. A customer deposits money of suspicious origins and refuses to answer

questions from the financial institution's staff.

B. A customer tries to move money that is suspected of being derived from

criminal activity.

C. A customer owns a large supermarket and deposits large amounts of cash

several times a day.

D. A customer's account is showing transaction activities that are beyond his

known financial capability. - correct answer ✔c

D. Deliberate avoidance of a customer based on the assumption that his or her

behavior suggested a potential threat as money launderer and/or terrorist -

correct answer ✔c

In anti-money laundering terminology, a red flag is

A. a warning sign indicating potentially suspicious, risky transactions or

activities.

B. a general banking term used once the balance is negative or overdue.

C. the standard flag of countries not cooperative in fighting money laundering

and terrorist financing.

D. an indicator that a customer is listed on an economic sanctions list. - correct

answer ✔a

The money laundering reporting officer of a financial institution should

A. report everything that comes his or her way from anyone in the organization.

B. report everything that comes his or her way from senior management or

Board of Directors.

C. review all available information and file a suspicious transaction report in

respect of any unusual or potentially suspicious activity.

D. report only what the reporting officer's superior agrees should be reported. -

correct answer ✔c

Which of the following statements is true?

A. Credit cards are not likely to be used in the layering phase of money

laundering because of restrictions in cash payments.

B. Credit cards are effective instruments for laundering money because the

transactions do not create an audit trail.

C. A launderer can launder money by prepaying his or her credit card using

funds that are already in the banking system, creating a credit balance on his

account, and requesting a credit refund.

D. A launderer can use illicit funds that are already in the banking system to pay

his or her credit card bill for goods purchased, which is an example of

placement. - correct answer ✔c

Why is a payable through account vulnerable to money laundering?

A. It can be very difficult to conduct due diligence on the foreign institution

customers who are ultimately using these accounts.

B. These are concentration accounts located in a domestic branch of a foreign

bank.

C. These are nested correspondent accounts at a foreign shell bank with

customers with whom the domestic bank did not exercise due diligence.

D. These are master escrow accounts on which a domestic bank generally does

not conduct periodic verification. - correct answer ✔a

What is the reasoning behind implementing a risk-based anti-money laundering

approach?

A. It will keep the regulators focused on money laundering controls in sectors

beyond banks.

B. Institutions can best use their limited resources to focus on matters where

the money laundering risks are highest.

C. A quantitative approach will generate better results than a qualitative

approach.

D. It allows the institution to focus on selling products that have a better return

on investment. - correct answer ✔b

D. Mr. Brown does not have an escrow account. - correct answer ✔b

A small broker-dealer has an AML compliance program that addresses

procedures for filing suspicious transaction reports and includes policies,

procedures and internal controls for customer identification, monitoring

accounts and identifying money laundering red flags. Every employee of the

broker dealer is trained via the Internet in January and in July on AML issues.

The board does not take the Internet training. Instead, the compliance officer

organizes a luncheon for them where an outsider comes in and trains them. The

program provides for the appointment of a compliance officer, and once a year

the compliance officer conducts an audit to test the program. In what respect

does the program need improvement?

A. The AML program should be tested by an independent person, not the

compliance officer.

B. The AML program should be tested more than once per year.

C. The board should receive the same training provided to th - correct answer

✔a

The Basel Committee in Banking Supervision can be defined as a committee

A. that develops the guidance for FATF.

B. of the CEOs of the major international banks.

C. of senior members of international law enforcement who harmonize

international AML/CTF laws.

D. of the G10 central bank governors, which issues guidance on subjects

including customer due

diligence, risk management and cross-border wire transfers. - correct answer

✔d

Which of the following best describes the alternative remittance system?

A. The transfer of value between countries, outside of the legitimate banking

system

B. A nonelectronic data remittance system used in several foreign countries to

report suspicious activities

C. Old-fashioned reporting requirements commonly used in non-cooperative

countries and territories

D. The transfer of funds between two or more financial institutions using

concentration accounts - correct answer ✔a

An AML compliance officer was reviewing customers at XYZ Bank and one of the

customers (Mr. Sam Tropicana) attracted her attention. During the recent

months, the cash deposits and withdrawals that

were transacted through his account increased with amounts ranging between

$7,500 and $17,000. In addition, Sam deposited two checks, issued by a casino,

into his account for $32,000 each. When opening the account, Sam stated that

he operated an import/export company. Which one of the following items

should cause the compliance officer to launch an investigation?

A. Sam maintained a personal account as well as the business account.

B. Sam's home telephone number was disconnected last month.

C. Sam asked for a letter of credit to finance some imports from a new supplier.

D. Sam had a recent increase in large cash transactions for his import/export

business. - correct answer ✔d

Which three of the following statements are true?

A. Online gambling provides an excellent method of laundering because

transactions are conducted

primarily through credit or debit cards and the sites are typically unregulated

offshore firms.

The FATF has consistently noted the use of casinos in money laundering

schemes in its annual typologies reports. One laundering technique involving

casinos is

A. asking for winners' checks to be made out in the name of third persons or

without a payee.

B. abusing casinos by circumventing its gatekeepers.

C. prepaying a casino token or chip by using funds that are already in the casino

system, creating a

debit balance.

D. extensive gambling via multiple games throughout the casino. - correct

answer ✔a

Which of the following should an anti-money laundering specialist include on an

internal investigation log?

A. A government order on a customer that garnishes his wages for failure to pay

child support

B. Supporting documentation and materials for denying service to a client with a

bad credit rating

C. Notes pertaining to activity that is unusual but for which a suspicious

transaction report has not been filed

D. Reference to a memorandum to the company's corporate management

relating to budgetary and similar concerns - correct answer ✔c

What are the three key criteria in AML risk rating?

A. Customer type, geographic location, products and services used

B. Geographic location, customer type, employment status

C. Products and services used, customer type and prior banking relations

D. Employment status, customer type, products and services used - correct

answer ✔a

A financial institution is looking to establish an online account opening service.

The institution plans to offer this product to new and existing customers within

the country. Which of the following would

be the best plan of action for an AML specialist to recommend enabling the

institution to verify the customer's identity?

A. Do not offer the product, because it is too high risk because the customers

cannot be seen to verify their identities.

B. Require all customers to send a copy of valid photo identification to the

institution.

C. Ensure that the institution has a reliable third-party source that will enable

verification of the customers.

D. Allow customers to enter required information but require all customers to

come to the institution in person for verification. - correct answer ✔c

Which of the following controls would most effectively minimize the need to

correct failures to collect required customer information in the account opening

process?

A. A quality review staff that checks paper applications to ensure all fields are

complete

B. An automated account-opening platform that requires data entry prior to

allowing the account to be opened

C. Requiring that a manager review and approve all new account applications

D. Documenting a procedure that sets forth the steps required to open an

account - correct answer ✔b