ACFE Exam CFE-Investigation Topic 4 Question 95 Discussion

Actual exam question for ACFE's CFE-Investigation exam

Question #: 95
Topic #: 4

Due to risks of illicit transactions, most jurisdictions require financial institutions to obtain information about which of the following from an institution with which they have a foreign correspondent relationship?

AThe institution's branch addresses

BThe institution's licenses or certifications

CThe institution's tax statements

DThe institution's client loan profiles

Show Suggested Answer

Suggested Answer: A

by Deonna at Sep 07, 2024, 10:17 AM

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Jaleesa

3 months ago

I'm not sure, but C) The institution's tax statements could also be important to prevent illicit transactions.

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Mirta

3 months ago

I agree with Horace, it makes sense to verify the legitimacy of the foreign institution.

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Shayne

3 months ago

Haha, client loan profiles? That's like asking a bank to show you their search history. Option B is clearly the way to go.

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Florinda

2 months ago

Haha, client loan profiles? That's like asking a bank to show you their search history. Option B is clearly the way to go.

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Corazon

2 months ago

D) The institution's client loan profiles

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Donette

3 months ago

C) The institution's tax statements

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Garry

3 months ago

B) The institution's licenses or certifications

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Marcelle

3 months ago

A) The institution's branch addresses

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Horace

4 months ago

I think the answer is B) The institution's licenses or certifications.

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Pearly

4 months ago

D seems like the right choice to me. Client loan profiles would give a good indication of the institution's risk management practices and potential money laundering activities.

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Kirby

3 months ago

I agree, D seems like the most relevant option in this case.

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Erick

3 months ago

D) The institution's client loan profiles

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Dorothy

3 months ago

C) The institution's tax statements

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Wade

3 months ago

B) The institution's licenses or certifications

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Stephaine

3 months ago

A) The institution's branch addresses

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Jose

4 months ago

I think the correct answer is B. Knowing the institution's licenses and certifications is crucial to ensuring they are legitimate and not involved in any illicit activities.

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Bette

3 months ago

I agree with you, but I think the answer is B. Licenses and certifications are also crucial for ensuring compliance.

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Ashanti

3 months ago

I think the answer is A. Branch addresses are important for verifying the legitimacy of the institution.

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