You are a fraud investigator who is working lor a large hardware and construction supply retailer that believes it is losing revenue to internal theft and embezzlement. The company has many vendors and fraudulent invoicing is suspected as a source of lost funds.
You have gathered records on payments to vendors from the accounts payable department, and are now going vendor by vendor to analyze documents and look for sources of fraud. You are currently reviewing information on one vendor, Quality Goods, Inc.
* Twenty invoices were received and paid from Quality Goods in the past six months
* Sixteen invoices were for amounts of about S9,000 dollars each Two were just below S1,000 and the remaining two were for amounts of about $3,000
* Purchase orders for items from Quality Goods total about $130,000
* Descriptions of items purchased varies somewhat by invoice but they generally describe different types of plumbing supplies Given this information what would be the most likely red flag?

• A. The number of invoices appear to exceed what would be reasonably expected in a six-month period
• B. The majority of the invoices from Quality Goods appear to be in amounts that would indicate structuring
• C. The amount invoiced by Quality Goods appears to exceed total purchase orders
• D. The descriptions of items purchased on the invoices do not appear to match the company's business

A company is concerned that its prepaid cards could be used by identity thieves seeking to launder funds.
You have been asked to examine its card program and designate features to reduce the risks of the cards being abused.
Which policy would MOST reduce the risk ol money laundering?

• A. The cards must be reloaded at the original point of sale using a debit or credit card
• B. The cards can be used al merchants' points of sale to get cash back on purchases
• C. The cards hold a low maximum value and can be reloaded by the customer several times a day
• D. The cards expire one year after their issue date and the funds revert to the customer

You are the chief compliance officer for a non-U S Bank that maintains some accounts in the name of U S residents Your country has signed a FATCA Model 1 inter-governmental agreement.
In developing your FATCA compliance program which should be incorporated into your program?

• A. IRS reporting must include all account balances and securities held in the name of a US resident
• B. Once evidence indicates a relationship with a U S resident, an exemption to file form must be obtained
• C. Customer due diligence for FATCA should be based on existing IRS requirements (or Qualified Intermediaries
• D. Customer due diligence for FATCA should leverage your existing AML program

Which is the strongest proof to establish grounds for seizure and confiscation of the properly?

• A. All deposits to the bank account of Corporation A originated from a government payroll account
• B. The checks from the bank account of Corporation A were used to purchase the property
• C. All electric bills have been paid from Ihe bank account of the public official
• D. A lease agreement straticulate the public official is paying $1,800 per month to Corporation A for rent of the house