James Thieferlon has stolen Linda Victim's ATM card and PIN James withdrew a total of $10,000 from Linda's checking account over several transactions using several ATM machines James then created lake invoices on hisbrother'scompany stationary to make it appear as though he provided S15,000 of IT goods for his brother's import/export company. From there, he presented the invoices to his bank and deposited the stolen S10,000 with the legitimate S5,000 he made from selling personal goods on the Internet.
Which step could be considered money laundering?

• A. Not openly declaring the $5,000 as Interne! sales revenue to be able to claim different taxes on them
• B. Depositing the money into his own bank account with the legitimate $5,000
• C. Creating false invoices for his brother's import/export company
• D. Smurfing committed by withdrawing the stolen $10,000 from several ATMs in small values

A law enforcement agent is investigating the owner of a small grocery store thought to be involved in a financial crime scheme II is believed that the store owner is moving illicit proceeds, but it is not clear how it might be happening.
The agent is conducting surveillance on the grocery store and makes the following observations.
* Individuals occasionally enter the store and ask to speak with the owner, who meets with them and takes notes in a notebook he keeps on his person
* Individuals sometimes arrive at the store with small packages or bags and leave without groceries
* The owner periodically visits another store in the neighborhood that acts as an agent for a large international money services business The agent has subpoenaed the bank account and transaction records for the grocery store Transaction patterns do not seem out of the ordinary given the type of business and the area and no suspicious transaction reports have been filed on the account. The store is a sole proprietorship and the owner is not listed as owning or controlling any other business entities.
Based on this information what is the MOST LIKELY conclusion of Ihe law enforcement agent?

• A. The store owner is conducting a terrorist financing operation
• B. The store owner is involved in a tax fraud scheme
• C. The store owner is operating as an unlicensed money remitter
• D. The store owner is running an affinity fraud scheme

You are investigating a steel company that is under suspicion of being used by a mafia organization as a conduit for illicit funds transfers and commodities transactions You come across documents of a len-ton shipment of low-grade industrial steel bars for Thailand divided into one-ton containers.
Which is the BEST indicator that this shipment is suspicious and requires additional investigation?

• A. Because it was most likely destined for trans-shipment to multiple nations or jurisdictions
• B. Because Thailand is well known as a high-risk country for trade-based money laundering
• C. Because metals are a known avenue for money laundering
• D. Because documents show payment for high-grade steel

One of the tasks for an employee of a U S bank is to administer overseas large value drafts. The employee receives a draft from Country X that is identified as a high-risk and non-cooperative jurisdiction by the FATF According lo the FATF 40 Recommendations, which action should the employee take?

• A. Since the draft was issued in a non-cooperative country block the transaction
• B. Request additional documentation to get a deeper understanding about the payer and the origin of the funds
• C. Conduct an investigation according to the money laundering and the financing of terrorism norms/rules enforced and adopted by Country X
• D. Verify the transaction's basic data according to the bank's international operations manual

You are part of a law enforcement learn reviewing remittances from global money service businesses (MSBs) over a several year period including a time of severe economic recession During this time period there was a regulatory change that drastically lowered the transaction amount al which ihe MSBs were required lo record identity documentation (e.g., driver's license passport) (or any wire transfers crossing international boundaries.
Which result suggests criminal actors have previously been using the system to transfer funds and avoid the reporting requirement?

• A. The aggregate amount of money transferred from one country to another reduced sharply immediately prior to and after the new reporting requirements were enacted
• B. The aggregate amount of money transferred from one country to another decreased sharply immediately prior to and increased sharply after the new reporting requirements were enacted
• C. There was an increase in the number of cross-border transmissions with an increased average value
• D. There was an increase in Suspicious Transaction Reports (SARs/STRs) filed to the Financial Intelligence Unit (FIU)