Claude stole a large amount of cash from his employer and then deposited the funds into a domestic bank account Next, he wired the illicit funds to a foreign bank account and engaged m several other transactions using foreign accounts to make them difficult to trace Finally, he transferred the funds back to a domestic account and then spent the money .
Which of the following actions was the layering stage of Claude’s money laundering scheme?
- A . When he first deposited the funds into a domestic account
- B . When he first stole the cash from his employer
- C . When he moved the funds through several transactions using foreign accounts
- D . When he spent the money
Countries A and B both follow the Financial Action Task Force (FATF) Recommendations concerning cross-border transfers of currency Trevor is traveling from Country A to Country B while carrying $16,000 in cash which exceeds Country B’s reporting threshold Trevor is required to disclose the amount of currency he is carrying to authorities in Country B.
- A . True
- B . False
Which of the following situations would constitute a violation of the US Foreign Corrupt Practices Act (FCPA)
- A . A private U.S company pays a S2.000 foreign corporation fee that is required in order to do business within the country
- B . A private UK company transfers $25,000 to a Chilean public official to influence the award of lucrative overseas contracts.
- C . A private U S company transfers $45,000 to a foreign official to influence the award of a public construction contract.
- D . A private U.S company transfers $100,000 to the sole proprietor of a Brazilian company to influence the award of a commercial imports contract.
The Organisation for Economic Co-operation and Developments (OECD) Recommendation on Combating Bribery m International Business (Recommendation) urges member states to combat the bribery of foreign public officials by taking steps to improve which of the following primary areas within their respective infrastructures?
- A . Public health and safety regulations
- B . Laws and regulations related to public subsidies licenses, and contract procurement
- C . Laws and regulations covering e-commerce
- D . Consumer data protection laws
The MAIN PURPOSE for maintaining the chain of custody on an item of evidence is to
- A . Establish that the evidence has not been altered or changed from the time it was collected through its production in court
- B . Verify that the item of evidence has only been handled by court officials prior to its production m court.
- C . event opposing parties from accessing evidence without a court order
- D . Eliminate re need to authenticate the item of evidence in court
Smith, a Certified Fraud Examiner (CFE). works for the ABC Company, a private entity that operates w a jurisdiction with civil laws for defamation, invasion of privacy. and conflict of interest Smith seizes and searches the personal smartphone of Green an employee of ABC even though Green was not suspected of any wrongdong Assuming that Green had a reasonable expectation of privacy in the smartphone and Smith conducted the search without a legitmate interest or authority, under which of the following claims would Green MOST LIKELY be able to recover damages against Smith?
- A . Slander
- B . Intrusion into Green’s private matters
- C . Public disclosure of private facts
- D . Conflict of interest
Which of the following is NOT one of the elements that the government must prove to establish a violation of a law criminalizing false statements to government agencies?
- A . The government relied on the false statement
- B . The defendant knew the statement was false
- C . The defendant made a false statement
- D . The false statement was material
In jurisdictions that allow for corporate criminal liability which of the following is typically required for the corporation to be vicariously liable for the acts of one of its employees?
- A . Management was directly involved with the offense
- B . Management knew of the underlying offense but did not correct it
- C . The corporation had previous violations of a similar nature
- D . The employee was acting within the scope of their employment
Which of the following can affect the rights that employees may have during an internal investigation?
- A . Existence of fraud risk factors
- B . Existence of violation red flags
- C . Existence of interstate compacts
- D . Existence of an employment contract
The MOST COMMON bankruptcy fraud scheme is:
- A . Forged filing
- B . A planned bustcut
- C . A credit card bustout
- D . Concealment of assets
D
1 1. Which of the following, if available, would help an organization recover losses from an instance of internal fraud?
Which of the following is NOT required for a contract transaction or scheme to be classified as an investment contract?
- A . The expectation of making a profit
- B . Profits derived solely from the investor’s management activity
- C . investment m a common enterprise
- D . An investment of money or other asset
Which of the following is NOT a requirement of the European Union’s (EU) General Data Protection Regulation (GDPR)?
- A . An organization must delete a data subject’s personal data automatically when the data are no longer m use.
- B . An organization must have a documented lawful basis for collecting or processing personal data.
- C . An organization generally must notify all affected data subjects without undue delay when a high-risk data breach occurs
- D . An organization must confirm or deny that it possesses a data subject’s personal data upon that individual’s request
Which of the following is the MOST ACCURATE statement about the different types of alternative dispute resolution’?
- A . The agreements reached in mediations are generally nonbinding.
- B . In a mediation session, the mediator decides who should win the dispute at issue
- C . The decisions reached in all arbitrations are always binding
- D . In an arbitration proceeding the arbitrator acts as a judge or jury by deciding the dispute at issue on its merits
A business files for bankruptcy with the goal of obtaining relief from creditors so that it can rearrange its financial affairs and continue as a going concern .
Which of the following describes this type of bankruptcy proceeding?
- A . Reorganization bankruptcy
- B . Debt adjustment bankruptcy
- C . Debt dismissal bankruptcy
- D . Liquidation bankruptcy
Each day, Rachel purchases $14 500 in bearer instruments with cash from a bank where all currency transactions above 515,000 must be reported to the government Rachets actions are a red flag of which of the following schemes’?
- A . Channel stuffing
- B . Alternative remittance system
- C . Structuring
- D . Real estate laundering
To determine if a misrepresentation in the offer or sale of any securities is material a fraud examiner should answer which of the following questions?
- A . "Did the person who made the representation believe that it was suitable for potential investors?"
- B . "Was the misrepresentation made by an authorized individual?"
- C . "Would a reasonable investor wish to know the information to make an informed decision?"
- D . ”Did the person who made the representation intend to mislead potential investors?
The Financial Action Task Force (FATF) Recommendations advise countries to do all of the following EXCEPT:
- A . Use a risk-based approach when setting anti-money laundering policies
- B . Require financial institutions to keep certain records and establish anti-money laundering policies.
- C . Require financial institutions to monitor their customers’ political affiliations.
- D . Enable authorities to trace freeze, and confiscate assets suspected in money laundering and terrorist financing
Which of the following statements concerning civil trials in common law jurisdictions is MOST ACCURATE?
- A . Civil jury trials must have the same number of jurors as in criminal jury trials.
- B . Neither side may appeal an adverse judgment in a civil case
- C . Jury verdicts m civil trials must always be unanimous
- D . in most civil cases, the standard of proof is the preponderance of the evidence
In jurisdictions that allow criminal bargaining agreements the defendant’s counsel generally has the discretion to determine whether a bargaining agreement is available to the defendant.
- A . True
- B . False
B
2 1. Which of the following statements concerning fact finders in criminal trials in common law jurisdictions is MOST ACCURATE?
Which of the following is NOT a right of the accused under the United Nations’ (UN) International Covenant on Civil and Political Rights (ICCPR)?
- A . Right of the accused to be informed of criminal charges
- B . Right to be presumed innocent until proven guilty
- C . Right to a trial by jury
- D . Freedom from arbitrary arrests
During a bankruptcy bustout scheme, or planned bankruptcy, the debtor committing the fraud typically performs which of the following actions?
- A . Colludes with creditors and the trustee to pay some creditors but not ethers
- B . Bribes a trustee to overlook assets in the debtor’s possession
- C . Conspires with suppliers to produce fraudulent invoices
- D . Purchases large quantities of goods on credit
Which of the following statements concerning examinations of expert witnesses in most inquisitorial jurisdictions is accurate?
- A . The expert has the discretion to determine the scope of the examinations
- B . The judge is not allowed to question the expert’s credibility under any circumstance
- C . The parties determine the extent of consideration to be given to the expert’s testimony
- D . The parties are often allowed to question the expert’s methods and analysis
Davis is an employee at Waccamaw Homeplace a publicly traded corporation Davis knows that Waccamaw is about to publicly announce a new joint venture project in China, so he buys shares of Waccamaw stock Assuming that his conduct was illegal m the jurisdiction in which he works and resides, what type of crime did Davis MOST LIKELY commit?
- A . Churning
- B . Futures fraud
- C . Insider trading
- D . Trading on margin
Which of the following statements about the International Organization of Securities Commissions (IOSCO) s TRUE?
- A . IOSCO is a self-regulatory organization for companies that have securities traded on international securities markets
- B . IOSCO provides a forum for regular cooperation on banking supervisory matters affecting developing nations
- C . IOSCO is an oversight body responsible for issuing and enforcing regulations that govern all international securities markets
- D . IOSCO is recognized as the international standard-setter for securities markets
Which of the following statements about the appeals process in cranial cases is MOST ACCURATE?
- A . In common law jurisdictions, appellate courts are generally not permitted to make their own factual determinations when reviewing a case
- B . In civil law jurisdictions appellate courts are generally not permitted to make their own legal conclusions when reviewing a case
- C . Appellate courts will usually hear an appeal even if the petition was not filed in a timely manner
- D . Appellate courts will usually reverse a conviction even if the trial court’s error did not affect the outcome of the case
Nora, a health care provider b convicted of health care fraud in criminal court After her conviction, the national health agency begins a proceeding to prohibit Nora from seeking reimbursement from government health care programs for five years.
Which type of administrative penalty is the national health agency seeking?
- A . License suspension
- B . Debarment
- C . License revocation
- D . Disenfranchisement
Which of the following is generally NOT one of the goals of deferred prosecution agreements?
- A . To postpone prosecution until a company conducts an extensive internal investigation
- B . To get an organization to reform its policies
- C . To allow prosecutors to resolve a case while still punishing malfeasance
- D . To reduce the risk of illegal practices at an organization
Which of the following is an example of a trade-based money laundering scheme?
- A . An importer and an exporter conspire to conceal illicit funds by creating invoices that understate the quantity of goods shipped internationally
- B . An accountant overstates a restaurants revenues to hide illegal funds that are secretly laundered through the business
- C . A 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
- D . A businessperson deposits illicit funds into the bank account of a company they secretly own which then lends the funds back to them
A
3 1. Company A sued Company B to recover damages tor the breach of a contract. In the same proceeding Company B sought damages for an allegation that Company A fraudulently induced Company B into entering the contract In this case what would Company B’s claim against Company A be called?
Under the World Bank Principles for Effective Insolvency and Credit/Debtor Regimes (World Bank Principles), which of the following parties should administer the debtor’s estate in liquidation bankruptcy proceedings?
- A . The jurisdiction’s commerce department or equivalent agency
- B . The creditor with the largest claim against the debtor
- C . The debtor, supervised by an independent insolvency representative
- D . An independent insolvency representative
Which of the following is the MOST ACCURATE statement about the litigation privilege in common law jurisdictions?
- A . The primary purpose of the litigation privilege is to protect confidential communications between a client and the client’s legal representative
- B . The litigation privilege only protects documents and materials prepared by an attorney
- C . The litigation privilege applies only while a trial is underway
- D . The litigation privilege applies only to documents and materials prepared in anticipation of litigation
Which of the following is the MOST ACCURATE statement about the circumstances under which a conflict of interest claim would be actionable against an agent?
- A . The agent must have purported to act on behalf of or as an agent for an identified principal
- B . The agent must have had an undisclosed interest m a matter that could influence their professional role
- C . The agent must have informed the principal of their actions
- D . The agent must have been authorized by someone with actual authority to carry out the transaction at issue
Which of the following statements concerning the appointment of expert witnesses at that is accurate?
- A . Generally, the court appoints the primary expert witnesses in inquisitorial jurisdictions.
- B . Generally, only the parties may select expert witnesses in inquisitional jurisdictions.
- C . Generally the court selects the primary expert witnesses in adversarial jurisdictions.
- D . Generally, only the parties may select experts to introduce testimony in adversarial jurisdictions