ACAMS Study Flashcards Chapter 1 Latest Questions and Answers 100% Correct.
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ACAMS Study Flashcards Chapter 1
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ACAMS Study Flashcards Chapter 1
What is remote deposit capture and what risk is associated with it? - ️️Remote
deposit capture (RDC) is a bank product that allows customers to scan a check and
transmit an electronic image to the bank for deposit. Because RDC minimizes human
intervention, it decreases the ability to identif...
ACAMS Study Flashcards Chapter 1
What is remote deposit capture and what risk is associated with it? - ✔️✔️Remote
deposit capture (RDC) is a bank product that allows customers to scan a check and
transmit an electronic image to the bank for deposit. Because RDC minimizes human
intervention, it decreases the ability to identify potential fraud indicators, such as an
altered check and multiple deposits of the same item.
What is a money laundering risk pertaining to the use of concentration accounts? -
✔️✔️Money laundering risks can arise in concentration accounts when the customer-
identifying information is separated from the financial transaction. When separation
occurs, the audit trail is lost, and accounts can be misused or administered improperly.
Give an example of the second stage of money laundering. - ✔️✔️Electronically
moving funds from one country to another and dividing them into advanced financial
options and/or markets; moving funds from one financial institution to another or within
accounts at the same institution; converting the cash placed into the system into
monetary instruments; reselling high-value goods and prepaid access or stored value
products; investing in real estate and other legitimate businesses; placing money in
stocks, bonds, or life insurance products; and using shell companies to obscure the
ultimate beneficial owner and assets.
Give an example of the third stage of money laundering. - ✔️✔️Purchasing luxury
assets such as property, artwork, jewelry, or high-end automobiles; and entering into
financial arrangements and other ventures in which investments can be made in
business enterprises.
Give an example of the first stage of money laundering. - ✔️✔️Blending of funds,
purchasing significant stored value cards with currency, foreign exchange, breaking up
amounts, currency smuggling, and loans.
What does the Yates Memo say? - ✔️✔️The Yates memo reminds prosecutors that
criminal and civil investigations into corporate misconduct should also focus on
individuals who perpetrated the wrongdoing. It notes that the resolution of a corporate
case does not provide protection to individuals from criminal or civil liability.
What are some indicators of money laundering using electronic transfers of funds? -
✔️✔️Funds transfers to or from a financial secrecy haven or high-risk geographic
location without an apparent business reason or when the activity is inconsistent with
the customer's business or history; large, incoming funds transfers on behalf of a foreign
client with little or no explanation or apparent reason; checks and money orders used to
, receive many small, incoming transfers of funds or to make deposits; funds activity that
is unexplained, repetitive, or reveals unusual patterns; payments or receipts that have
no apparent link to legitimate contracts, goods, or services; and funds transfers sent or
received from the same person to or from different accounts.
What is money laundering? - ✔️✔️Money laundering involves taking criminal proceeds
and disguising their illegal sources in order to use the funds to perform legal or illegal
activities. Money laundering is the process of making dirty money look clean.
What are some of the money laundering risks pertaining to the use of payable through
accounts (PTAs)? - ✔️✔️PTAs with foreign institutions licensed in offshore centers with
weak bank supervision and licensing laws; PTAs arrangements in which the
correspondent bank fails to apply CDD to the respondent's customers; PTA
arrangements in which subaccount holders have currency deposit and withdrawal
privileges; and PTAs used in conjunction with a subsidiary, representative, or other
office of the respondent bank.
Define a politically exposed person (PEP). - ✔️✔️A PEP is a person who is or has
been entrusted with a prominent public function domestically or by a foreign country or
international organization. Relatives and close associates of PEPs are also considered
to be PEPs.
What is structuring? - ✔️✔️Structuring is designing a transaction to evade triggering a
reporting or recordkeeping requirement, e.g., breaking a large cash deposit into smaller
amounts to be deposited into separate banks, separate accounts, or on separate days
to avoid currency transaction reports.
Which money laundering stage(s) are credit cards most likely to be used, and what is an
example of money laundering through the use of credit cards? - ✔️✔️Credit cards are
more likely to be used in the second (layering) and third (integration) stages of money
laundering. Examples include overpaying a credit card balance and then asking for a
refund and placing illegal funds in accounts at offshore banks and then accessing the
funds using credit and debit cards associated with the offshore account.
What are some risks posed by third-party payment processors (TPPPs)? -
✔️✔️Multiple financial organization relationships, whereby the TPPP's suspicious
activity cannot be seen in its entirety; money laundering by sending funds directly to a
financial organization from a foreign jurisdiction through an international ACH payment;
and high return rates from unauthorized transactions.
What are some ways money services businesses (MSBs) can be used for money
laundering? - ✔️✔️Money launderers can use money remitters and currency
exchanges to make funds available to criminal organizations at a destination country in
the local currency. The launderer or broker then sells the criminal dollars to foreign
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