Discuss Acams CAMS Exam Topic 3 Question 104

A compliance analyst has recently investigated an account where money was deposited in amounts below the reporting limit and almost entirely withdrawn in a foreign country. Which type of money laundering is the compliance analyst potentially identifying?

ATrade-based

BCheck Kiting

CStructuring

DMicrostructuring

Suggested Answer: D

Microstructuring refers to breaking up large transactions into multiple, smaller transactions, each below reporting thresholds, to avoid detection (''smurfing''). In this scenario, deposits are consistently below the reporting limit---indicative of microstructuring (B). While ''structuring'' (C) is the general term, microstructuring specifically describes the use of very small amounts, often over a prolonged period, which matches this case. The CAMS 6th Edition and FinCEN guidance both recognize microstructuring as a prevalent money laundering typology. Reference:

CAMS 6th Edition, Chapter 3: ''Detection and Reporting of Suspicious Transactions,'' Section: Structuring and Microstructuring

FinCEN, ''Advisory on Structuring and Smurfing,'' 2014

Get Premium CAMS Questions as Interactive Web-Based Practice Test or PDF Real Exam Format Detailed Explanations Instant Access Get Your Practice Test

29 comments · newest first

Rosendo 8 months ago

Yeah, but the withdrawals make C the best choice here.

Kanisha 8 months ago

I feel like A) Trade-based could apply if there's more context.

Mona 8 months ago

True, but C is more common in these cases.

Candra 9 months ago

What about D) Microstructuring? Seems relevant too.

Adaline 9 months ago

I agree, it fits the pattern.

Goldie 9 months ago

I think it's C) Structuring.

Willow 9 months ago

Totally agree, it's all about avoiding those reporting limits!

Laurena 9 months ago

I thought trade-based was more common for this type of activity.

Claribel 9 months ago

Wait, is microstructuring even a real thing?

Salome 10 months ago

Definitely C, that's classic structuring behavior.

Noe 10 months ago

Microstructuring, huh? Sounds like someone's been watching too many crime dramas. C) Structuring is where it's at, my dudes.

Jovita 10 months ago

A) Trade-based money laundering? Nah, this sounds more like good old-fashioned C) Structuring to me.

Caren 10 months ago

B) Check Kiting sounds like the right answer here. Shuffling money between accounts to create the illusion of legitimate funds.

Alishia 10 months ago

Sounds like microstructuring to me.

Earleen 10 months ago

I'd go with D) Microstructuring. Splitting up deposits to stay under the radar is a sneaky way to launder cash.

Avery 11 months ago

Hmm, I'm not sure if this is Structuring or Microstructuring. I'll have to think through the definitions of each one more carefully before deciding.

Deeann 11 months ago

Definitely C) Structuring. Trying to avoid reporting requirements is a classic money laundering technique.

Horace 11 months ago

I'm pretty confident this is Microstructuring. The small deposits and foreign withdrawal fit that pattern. I'll mark that as my answer.

Nieves 11 months ago

Okay, I've got this. The key details are the deposits below the reporting limit and the foreign withdrawal. That points to Structuring as the type of money laundering the analyst is identifying.

Sharan 12 months ago

I'm a bit confused on the difference between Structuring and Microstructuring. I'll have to review those concepts again before answering this.

Graham 1 year ago

Hmm, this seems like a tricky one. I'm thinking it could be Structuring or Microstructuring, since the deposits were below the reporting limit and the money was withdrawn in another country.

Leota 7 months ago

↳ replying to Graham

True, both could fit, but the foreign withdrawal leans towards Microstructuring.

Colette 7 months ago

↳ replying to Graham

But isn't Structuring also a possibility?

Donette 7 months ago

↳ replying to Graham

Yeah, the small deposits are a clear sign of that.

Veronika 11 months ago

↳ replying to Graham

I agree, it sounds like Microstructuring to me.

Carri 1 year ago

I feel like this could also relate to trade-based money laundering, but the focus on withdrawals makes me lean towards structuring.

Cletus 1 year ago

This scenario seems to fit the definition of structuring, where the amounts are deliberately kept low to avoid detection.

Delsie 1 year ago

I remember practicing a question about microstructuring, which sounds similar, but I can't recall the exact differences.

Avery 1 year ago

I think this might be related to structuring since the deposits are below the reporting limit, but I'm not entirely sure.

Acams CAMS Exam - Topic 3 Question 104 Discussion