ACFCS Financial Crime Specialist Sample Questions:

1. Company A required capital to purchase wholesale consumer products to resell to retail outlets Company A solicited working capital by offering investors promissory notes in exchange for borrowed funds. The promissory notes promised a high annual interest rate of 14% Company A paid the promised 14% returns and a commission from the new funds received from later investors No wholesale products were purchased with the investors funds and there was no underlying business.
Which type of fraud is being described?

A) Advanced Fee scheme
B) Ponzi scheme
C) Pump and dump scheme
D) Pyramid scheme

2. According to the Basel's Committee's Customer Due Diligence Paper how should a customer's first payment be carried out?

A) Through a lawyer or other gatekeeper account with another bank subject to similar customer due diligence standards
B) Through an established money service business with a correspondent relationship with the financial institution
C) Through an account in the customers name with another bank subject to similar customer due diligence standards
D) Through an account in the customer's name in an established bank within the financial action task force zone

3. How are trade price manipulation schemes used to launder criminal proceeds?

A) By transferring funds offshore through invoicing schemes for non-existent good and services
B) By obscuring the money trail through offshore bond swaps and fraudulent letters of credit
C) By transferring value between related criminal enterprises through the fraudulent misrepresentation of the value of exported commodities
D) By serving as a balancing mechanismtosettle payments between unregistered hawalas and other informal value transfer systems

4. A client is introduced to a bank by an intermediary The intermediary is a reputable financial institution that is regulated in a foreign FATF compliant jurisdiction Regulation applicable to the bank requires the bank conduct due diligence with respect to the intermediary's clients Which statement is true in this situation according to the 2012 Wolfsberg Principles on Intermediaries?

A) The bank can rely on the intermediary's due diligence information because it is regulated in a foreign FATF compliant jurisdiction
B) It is not necessary (or a bank to perform due diligence on the intermediary's clients
C) The bank may rely on the intermediary to assist in obtaining relevant due diligence information with regard to the intermediary clients
D) The bank should perform its own due diligence on the underlying clients and may not rely on the intermediary to assist in obtaining due diligence information on the clients

5. Your bank has recently received an online application for a new business account from a company named ACE Operations, LLC By reviewing the operating agreement and other documents included in the application, you determine that ACE is incorporated in the U S state of Wyoming.
A review of the Wyoming corporate registry online shows that ACE was formed 15 years ago. An initial Internet search produces no company website or further information about the company. The registered agent's contact information and address on the company's most recent annual filing is for Capital Solutions a corporate services provider.
Concerned that ACE Operations appears to be a shelf corporation you are conducting further due diligence on the company's ownership structure Which is the MOST appropriate next step to take?

A) Research annual filings in the corporate registry to determine if ACE Operations had any previous owners
B) Request a company organizational chart that includes members, directors, and other stakeholders
C) Request that the registered agent submit a self-certification of any parties with a 51% or greater ownership stake in ACE Operations
D) Request a certificate of good standing from the Wyoming corporate registry for ACE Operations

Solutions: