ACFE Exam CFE-Law Topic 1 Question 56 Discussion

Actual exam question for ACFE's CFE-Law exam

Question #: 56
Topic #: 1

Which of the following statements concerning front businesses as a method of laundering money is the LEAST ACCURATE?

AA red flag of a front business is the observation of a large number of customers during peak operating hours

BFront businesses provide cover for delivery and transportation related to illegal activity

CFrom criminals' perspective a disadvantage to front businesses is that they generally must pay taxes on the illicit income

DFront businesses benefit launderers by providing a safe place to manage criminal activities

Show Suggested Answer

Suggested Answer: A

by Cassandra at Feb 09, 2025, 09:47 PM

Limited Time Offer

25%

Off

Get Premium CFE-Law Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Edison

1 months ago

I heard the perfect front business is a used car dealership. You can launder money and scam people all at the same time. Talk about efficiency!

upvoted 0 times

Brunilda

24 days ago

A) A red flag of a front business is the observation of a large number of customers during peak operating hours

upvoted 0 times

...

Shay

2 months ago

Haha, Option B is a good one. Delivery and transportation? That's just asking to get caught. Criminals these days need to think outside the box, not stick to the basics.

upvoted 0 times

...

Brigette

2 months ago

Option A is way off. A front business with no customers? That's like a spy wearing a disguise that's way too obvious. Gotta be more subtle than that!

upvoted 0 times

Devora

11 days ago

Exactly, you have to be smart about it to avoid suspicion.

upvoted 0 times

...

Valentin

20 days ago

Totally agree, it's all about blending in and looking legitimate.

upvoted 0 times

...

Desmond

1 months ago

Yeah, a front business with no customers is a dead giveaway.

upvoted 0 times

...

Brandon

2 months ago

I think Option D is the winner here. Front businesses are the perfect cover for managing all sorts of criminal activities. Definitely the way to go for savvy money launderers.

upvoted 0 times

Jame

28 days ago

C) From criminals' perspective a disadvantage to front businesses is that they generally must pay taxes on the illicit income

upvoted 0 times

...

Rex

1 months ago

B) Front businesses provide cover for delivery and transportation related to illegal activity

upvoted 0 times

...

Marya

2 months ago

A) A red flag of a front business is the observation of a large number of customers during peak operating hours

upvoted 0 times

...

Tina

2 months ago

Option C is definitely the least accurate. Criminals couldn't care less about paying taxes on their illicit income. That's the whole point of money laundering!

upvoted 0 times