ACFE Exam CFE-Law Topic 1 Question 31 Discussion

Actual exam question for ACFE's CFE-Law exam

Question #: 31
Topic #: 1

Which of the following is an example of a trade-based money laundering scheme?

AAn importer and an exporter conspire to conceal illicit funds by creating invoices that understate the quantity of goods shipped internationally

BAn accountant overstates a restaurants revenues to hide illegal funds that are secretly laundered through the business

CA drug cartel outside of the United States launders illicit funds by hiring runners to deposit small amounts of money in bank accounts throughout the United States

DA businessperson deposits illicit funds into the bank account of a company they secretly own which then lends the funds back to them

Show Suggested Answer

Suggested Answer: A

by Tonette at Mar 06, 2024, 06:16 PM

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Janet

5 months ago

I think the answer is D. Depositing illicit funds into a company's account and then borrowing the money back seems like a clever trade-based money laundering scheme.

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Edgar

5 months ago

I'm leaning towards B. An accountant overstating revenues at a restaurant to hide illegal funds seems like a plausible trade-based money laundering scheme.

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Josefa

5 months ago

I disagree, I believe the answer is C. The drug cartel using runners to deposit money in various bank accounts sounds more like a trade-based money laundering scheme to me.

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Buck

5 months ago

I think the answer is A. The importer and exporter collaborating to hide illicit funds seems like a trade-based money laundering scheme.

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Tayna

6 months ago

I'm not sure, but I think the answer could also be C. Using runners to deposit small amounts of money in bank accounts across the US could be considered trade-based money laundering.

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Kate

6 months ago

I believe the answer is D instead. Depositing illicit funds into a company's account that is secretly owned seems like a trade-based money laundering scheme as well.

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Mitsue

6 months ago

I agree with Bernardine, because understating the quantity of goods shipped can be used to conceal illicit funds.

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Bernardine

7 months ago

I think the answer is A.

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