ACAMS Practice Exam With Answers (72 Solved Questions)

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ACAMS EXAM WITH CORRECT QUESTIONS AND ANSWERSWhich two of the following activities are typically associated with the Black Market PesoExchange (BMPE) money laundering system?A. Converting illicit drug proceeds from dollars or Euros to Colombian pesosB. Converting illicit drug proceeds from Colombian pesos to dollars or EurosC. Facilitating purchases by Colombian importers of goods manufactured in the UnitedStates or Europe through peso brokersD. Facilitating purchases by European or U.S. importers of goods manufactured in Colombiathrough peso brokers - A CWhich statement is true?A. Bust-out schemes are popular in creating large bankruptcy frauds where businessessecure increasing loans in excess of the actual value of the company or property and thenrun with the money, leaving the lender to foreclose and take a substantial lossB. Cuckoo smurfing is a significant money laundering technique identified by the FinancialAction Task Force, where a form of structuring uses nested accounts with shell banks insecrecy havensC. In its revised 40 Recommendations of 2003, the FATF issued for the second time a list of"designated categories of offense" that asserts crimes for a money laundering prosecutionD. E-cash is not attractive to the money launderer because it cannot be completelyanonymous and does not allow for large amounts to be "transported" quickly and easily - AWhat is the definition of a predicate offense?

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A. Lawful or unlawful activity that involves willful blindness, and if there is an internationalelement to the crime, can lead to a suspicious activity reportB. Unlawful activity whose proceeds, if involved in the transaction, can give rise toprosecution for the crime of money launderingC. An interface which is the underlying segment of a suspicious transaction monitoringsystemD. A specified unlawful activity that is committed through concentration accounts deceivingcustomers that are not directly related to the account - BWhat are two definitions of willful blindness?A. Deliberate avoidance of knowledge of factsB. Refusing to put glasses on while drivingC. Purposeful indifferenceD. Not being able to see - A CWhat are the three stages of money laundering?A. Payments, cash and spendingB. Collecting, distributing and hoardingC. Placement, layering and integrationD. Placement, structuring and layering - CTrue or false, the cycle of money laundering is circular?

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A. TrueB. False - AWhat are three economic and social costs of money laundering?A. CorruptionB. Weakening of financial institutionsC. Companies having more limited access to world marketsD. Inability to gain access to cash - A B CWhich of the following statements is true?A Credit cards are not likely to be used in the layering phase of money laundering because ofrestrictions in cash paymentsB Credit cards are effective instruments for laundering money because the transactions donot create a paper trailC A launderer can launder money by prepaying his credit card using funds that are alreadyin the banking system, creating a credit balance on his account, and requesting a creditrefundD A launderer can use illicit funds that are already in the banking system to pay his creditcard bill for goods purchased, which is an example of placement - CWhy is a Payable Through Account vulnerable to money laundering?A These are master correspondent accounts established at a domestic bank by a foreignbank that allow the customers of the foreign bank to do a wide range of transactions

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B These are correspondent accounts located in a non-cooperative country or territoryC These are nested correspondent accounts at a foreign shell bank with customers withwhom the domestic bank did not exercise due diligenceD These are master escrow accounts on which a domestic bank generally does not conductperiodic verification - AWhich of the following statements is true? Correspondent banking is MOSTvulnerable to money laundering when the correspondent account is:A. Maintained for foreign financial institutions that are banksB. Not used to provide services directly to third partiesC. Maintained for a foreign bank that does not have a physical presence in any countryD. Maintained for a foreign private bank that is publicly traded and is a qualified intermediary- CWhich statement is true?A. Lawyers/attorneys can generally not be used to serve as formation agents to set uptrusts, front companies or shell corporationsB. Lawyers, accountants, notaries and other similar professionals are called money servicesprovidersC. Lawyers can generally not be used to act as a nominee shareholder for another personD. Launderers can abuse gatekeepers by using their accounts for the placement and thelayering of funds - DWhat are two products or services commonly used in money laundering?A. Correspondent banking

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B. Home equity loansC. Private bankingD. Commercial loans - A CWhat are two corporate vehicles commonly used in money laundering?A. TrustsB. LLCsC. Money services businessesD. Escrow accounts - A CWhat are two common attributes of a shell company?A. Few if any employeesB. No real addressC. Publicly listedD. Caters to seafood restaurants - A BWhat are three methods of trade-based money laundering?A. Over invoicing - listing the goods for more than they are worthB. Under invoicing - listing the goods for less than they are worthC. Invoicing for non-existent goods

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D. Using slow moving freight ships - A B CWhat are three reasons new technologies can be used for moneylaundering?A. They are quickerB. The are harder to traceC. They are harder to understandD. They are harder to prevent - A B DWhat are three preventive measures to be used on countering moneylaundering?A. Use of passwordsB. Tracking transactions to look for anomaliesC. Contacting customers when there is unusual activityD. Relying on the tellers to uncover the fraud - A B CGive three reasons why stored value cards are useful in money laundering?A. They are portableB. They can be used at all of the branches of a bankC. They can be used anonymouslyD. They may have high value limits - A C D

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What are three sources of terrorist financing?A. Donations from wealthy donorsB. Charitable contributionsC. Illegal funds from crimesD. Savings from trust funds - A B CWhat are three reasons why terrorist financing tends to be difficult touncover?A. It uses fewer funds than money launderingB. It does not always involve illegal fundsC. It is used primarily for future illegal purposes, not pastD. It does not have marijuana residue on the funds - A B CWhat are three of the goals of FATF?A. Spreading the AML messageB. Monitoring members' progress in adopting FATF's recommendationsC. Drafting international AML lawsD. Reviewing money laundering trends - A B DWhat are three criteria for membership into FATF?

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