Money Laundering Stages Quiz

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Questions and Answers

What is the first stage of money laundering according to the text?

Placement (correct)
Currency smuggling
Purchasing foreign exchange
Layering

Which of the following is an example of a placement transaction?

Dividing cash into small amounts and depositing it into numerous bank accounts
Purchasing foreign exchange with illegal funds
Loans: Repayment of legitimate loans using laundered cash
Blending of funds: Commingling illegitimate funds with legitimate funds (correct)

Which activity involves dividing cash into small amounts and depositing it into numerous bank accounts in an attempt to evade reporting requirements?

Breaking up amounts (correct)
Purchasing significant stored value cards with currency
Blending of funds
Currency smuggling

What is a common method used during the placement stage to introduce illicit proceeds into the financial system?

<p>Placing the funds into circulation through formal financial institutions, casinos, and other legitimate businesses (C)</p> Signup and view all the answers