Discuss ACFE CFE-Law Exam Topic 1 Question 27

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

Suggested Answer: A

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18 comments · newest first

Christiane 11 months ago

D is just plain shady, no way that's legit!

Carry 11 months ago

C seems more like a classic money laundering method.

Malika 11 months ago

Wait, how is A legal at all? Sounds sketchy!

Louisa 12 months ago

I think B is more about business fraud, not trade.

Claribel 12 months ago

A is definitely trade-based money laundering.

Lisha 12 months ago

I’m confused about option D. It seems like it could be a form of money laundering, but I don’t think it fits the trade-based definition.

Dorian 1 year ago

I feel like option C is more about layering than trade-based laundering. It’s tricky because they’re both money laundering methods.

Devon 1 year ago

I remember a practice question about money laundering schemes, but I’m not sure if overstating revenues counts as trade-based. That makes me hesitate on option B.

Malcolm 1 year ago

I think trade-based money laundering involves manipulating trade invoices, so I’m leaning towards option A.

Stefanie 1 year ago

I think the key here is identifying which one involves manipulating international trade transactions to hide illicit funds. That points to A as the best example of a trade-based money laundering scheme. The others seem more focused on domestic financial transactions.

Chana 1 year ago

Okay, let me break this down. A and D both involve businesses being used to launder money, but A specifically mentions concealing the quantity of goods shipped, which seems like the clearest example of a trade-based scheme. I'm leaning towards A as the answer.

Mignon 1 year ago

Hmm, I'm not totally sure about this one. I know trade-based schemes are a common way to launder money, but I'm not 100% confident which of these examples is the best illustration. I'll have to think it through carefully.

Mammie 1 year ago

This question seems straightforward - I think the answer is A, where the importers and exporters create false invoices to conceal illicit funds. That's a classic trade-based money laundering scheme.

Lashawnda 1 year ago

I think the key here is that some users need the Administrator role, but the default is Guest. So the configuration item that needs to be created is the Remote User role with the Administrator permissions. That should solve the problem.

Malinda 1 year ago

This is a tricky one, but I'm going to use the process of elimination to narrow it down and make an educated guess.

Nina 1 year ago

I'm a bit confused by this question. I'll need to re-read it and make sure I understand the key factors to consider.

Lindsey 1 year ago

Hmm, I'm a bit confused on this one. I know sudo is used to run commands as root, but I'm not sure if it's the user's password or the root password that's required. I'll have to think this through carefully.

Adell 1 year ago

Key words like 'educate physicians' and 'documentation standards' scream Health Information Manager. That's definitely the most comprehensive role for this task.

ACFE CFE-Law Exam - Topic 1 Question 27 Discussion