ACFE Exam CFE-Law Topic 1 Question 33 Discussion

Actual exam question for ACFE's Certified Fraud Examiner (CFE) - Law exam

Question #: 33
Topic #: 1

[All Certified Fraud Examiner (CFE) - Law Questions]

Which of the following statements concerning money services businesses (MSBs) is INCORRECT?

AMSBs tend to have a tower money laundering risk than other financial institutions.

BMSBs are generally less strictly regulated than traditional financial institutions.

CA check cashing company is classified as an MSB.

DA currency exchange is classified as an MSB.

Show Suggested Answer

Suggested Answer: B

by Maurine at Apr 10, 2024, 04:35 AM

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Benedict

8 days ago

You know, I bet the exam writers are enjoying watching us all debate this question. They're probably sitting back and laughing, thinking 'gotcha!' But in all seriousness, I agree that A is the incorrect statement about MSBs.

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Willodean

10 days ago

The way I see it, the exam is trying to assess our knowledge of the compliance requirements for different financial entities. MSBs definitely face tighter scrutiny than traditional banks when it comes to anti-money laundering measures. Option A has got to be the wrong answer here.

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Hillary

11 days ago

Yep, MSBs like check cashing companies and currency exchanges are classified as such and are subject to regulations like the Bank Secrecy Act. Options C and D are correct, so I think B is the incorrect statement.

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Belen

12 days ago

Haha, I bet the exam writers are trying to trick us with this one. They probably want us to think that MSBs are less regulated, but that's not the case. Option B is the incorrect statement in my opinion.

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Janae

14 days ago

I agree with Antonio. MSBs are often used for money laundering activities, so they are generally subject to more strict regulations and oversight. Option A is definitely the incorrect statement here.

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Antonio

16 days ago

I think this question is trying to test our understanding of the regulatory environment surrounding money services businesses. From what I know, option A seems incorrect - MSBs tend to have a higher money laundering risk compared to traditional financial institutions.

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