ACCA Strategic Professional · Advanced Audit and Assurance (International) · Money laundering
Kestrel & Co, an audit firm, discovers that a client's director deposited small cash sums, each below the bank's reporting threshold, into many different accounts over several weeks. Which stage of money laundering does this activity most clearly represent?
This is placement, the first stage of money laundering. Depositing illicit cash in small amounts across several accounts to stay under reporting thresholds introduces the money into the financial system, which is placement rather than layering or integration.
- APlacementCorrect
- BLayering
- CIntegration
- DPredicate offending
Explanation
Placement is the first stage, where illicit cash is introduced into the financial system. Splitting cash into small deposits (structuring or smurfing) to avoid reporting thresholds is a classic placement technique. Layering would involve later complex transfers to obscure the trail.
Did you get it right without looking?
One question tells you little. A timed set on Money laundering shows your real accuracy, how long you take and where you lose marks.
More Money laundering questions
- During the audit of Calder Ltd, a staff member of the audit firm, Priya, notices a series of unusual cash deposits that she suspects may rep…
- Marlow & Partners is the auditor of Pennant Ltd. Having reported a suspicion of laundering, the firm must decide whether to continue the aud…
- Which of the following best describes the offence of assisting or becoming concerned in an arrangement relating to criminal property, as it …
- During the audit of Brightwell Plc, the engagement partner concludes there are reasonable grounds to suspect that a customer's payments were…
- Lakeside & Co is reviewing its firm-wide AML framework. Which of the following is a required element of an effective set of firm procedures?
- During the audit of Brightvale Ltd, the auditor identifies a suspected money laundering offence that is not material to the financial statem…