CFE-LAW Online Practice Questions and Answers

Under the best practices listed in the Financial Action Task Force (FATF) Recommendations concerning large cash transactions with customers, which of the following transactions would require a report to be filed with the government?

A. A domestic credit card purchase of a piece of jewelry above the jurisdiction's designated threshold

B. A lump-sum cash deposit to a bank above the jurisdiction's designated threshold

C. An international purchase of a small boat with a lump-sum cash payment below the jurisdiction's designated threshold

D. A cash payment to a restaurant supplier for restaurant supplies above the jurisdiction's designated threshold

Each day, Rachel purchases $14,500 in bearer instruments with cash from a bank where all currency transactions above $15,000 must be reported to the government. Rachel's actions are a red flag of which of the following schemes?

A. Real estate laundering

B. Structuring

C. Alternative remittance system

D. Channel stuffing

Which of the following statements concerning judgments involving parties in multiple jurisdictions is MOST ACCURATE?

A. If a party obtains a judgment in one jurisdiction, that party will automatically be able to enforce the judgment wherever the defendant resides.

B. If a party obtains a judgment in one jurisdiction, that party will automatically be able to enforce the judgment in any jurisdiction.

C. Whether a foreign judgment is enforceable might depend on whether the two jurisdictions have an enforcement treaty.

D. Whether a foreign judgment is enforceable always depends on where the defendant's assets are located.

Which of the following is NOT a right of the accused under the United Nations' (UN) International Covenant on Civil and Political Rights (ICCPR)?

A. Right to be presumed innocent until proven guilty

B. Freedom from arbitrary arrests

C. Right of the accused to be informed of criminal charges

D. Right to a trial by jury

The most common bankruptcy fraud scheme is:

A. A planned bustout

B. A credit card bustout

C. Forged filing

D. Concealment of assets

Which of the following is NOT a requirement of the European Union's (EU) General Data Protection Regulation (GDPR)?

A. An organization generally must notify all affected data subjects without undue delay when a high-risk data breach occurs.

B. An organization must confirm or deny that it possesses a data subject's personal data upon that individual's request.

C. An organization must delete a data subject's personal data automatically when the data are no longer in use.

D. An organization must obtain a data subject's consent before collecting or processing personal data about that individual.

The __________ requires that an employee act solely in the best interest of their employer, free of any self-dealing, conflicts of interest, or other abuse that results in a personal advantage.

A. Duty of responsibility

B. Duty of care

C. Duty of employee trust

D. Duty of loyalty

Which of the following statements is TRUE regarding criminal proceedings and discovery in adversarial jurisdictions?

A. The judge is the primary driver of the discovery process in criminal proceedings.

B. Parties typically cannot request evidence from each other until after the trial begins.

C. The majority of criminal discovery usually occurs before the trial begins.

D. Most criminal proceedings are divided into pretrial, investigative, and trial phases.

If Mary uses legal means to lower her tax bill through legitimate deductions and credits, she is engaging in tax evasion.

A. True

B. False

Which of the following is the MOST ACCURATE statement about self-regulatory organizations (SROs) in the securities industry?

A. In some jurisdictions, SROs establish the standards and rules under which members of the securities industry operate.

B. An SRO generally has sole regulatory authority over the securities industry in the jurisdiction in which it operates.

C. In most jurisdictions, SROs are prohibited from participating in the resolution of disputes related to securities transactions.

D. An SRO is a governmental entity that exercises regulatory authority over the securities industry in its jurisdiction.