ACFE Exam CFE-Law Topic 1 Question 33 Discussion

Actual exam question for ACFE's CFE-Law exam

Question #: 33
Topic #: 1

[All CFE-Law Questions]

Which of the following statements concerning money services businesses (MSBs) is INCORRECT?

AMSBs tend to have a tower money laundering risk than other financial institutions.

BMSBs are generally less strictly regulated than traditional financial institutions.

CA check cashing company is classified as an MSB.

DA currency exchange is classified as an MSB.

Show Suggested Answer

Suggested Answer: B

by Maurine at Apr 10, 2024, 04:35 AM

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Hayley

5 months ago

Candidate 3: I see your point, but I still think C is the incorrect statement as not all check cashing companies are considered MSBs.

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Solange

5 months ago

Candidate 4: I agree with Candidate 2, B is the incorrect statement because MSBs are definitely less strictly regulated.

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Brande

6 months ago

Candidate 1: That's a good point, but I still think A is the incorrect statement due to the heightened risk.

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Yolande

6 months ago

Candidate 3: I think C is the incorrect statement because not all check cashing companies are classified as MSBs.

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Junita

6 months ago

Candidate 2: I disagree, I believe the incorrect statement is B, MSBs are actually more strictly regulated.

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Rebeca

7 months ago

Candidate 1: I think the correct answer is A, MSBs have higher money laundering risk.

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Santos

7 months ago

I understand your reasoning, but C) seems to make more sense based on the regulations.

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Katina

7 months ago

Hmm, I see your point. But I still think A) sounds more accurate to me.

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Tiffiny

7 months ago

Actually, I think the answer is D) A currency exchange is classified as an MSB.

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Santos

7 months ago

I disagree, I believe the correct answer is C) A check cashing company is classified as an MSB.

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Katina

7 months ago

I think the answer is A) MSBs tend to have a higher money laundering risk than other financial institutions.

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Paris

7 months ago

I think the answer is D) A currency exchange is classified as an MSB.

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Nettie

7 months ago

I'm not so sure. I think it might be C) A check cashing company is classified as an MSB.

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Lynelle

7 months ago

Actually, I think it's B) MSBs are generally less strictly regulated than traditional financial institutions.

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Lauran

7 months ago

I believe the correct answer is A) MSBs tend to have a higher money laundering risk than other financial institutions.

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You know, I bet the exam writers are enjoying watching us all debate this question. They're probably sitting back and laughing, thinking 'gotcha!' But in all seriousness, I agree that A is the incorrect statement about MSBs.

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Willodean

8 months ago

The way I see it, the exam is trying to assess our knowledge of the compliance requirements for different financial entities. MSBs definitely face tighter scrutiny than traditional banks when it comes to anti-money laundering measures. Option A has got to be the wrong answer here.

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Hillary

8 months ago

Yep, MSBs like check cashing companies and currency exchanges are classified as such and are subject to regulations like the Bank Secrecy Act. Options C and D are correct, so I think B is the incorrect statement.

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Belen

8 months ago

Haha, I bet the exam writers are trying to trick us with this one. They probably want us to think that MSBs are less regulated, but that's not the case. Option B is the incorrect statement in my opinion.

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Janae

8 months ago

I agree with Antonio. MSBs are often used for money laundering activities, so they are generally subject to more strict regulations and oversight. Option A is definitely the incorrect statement here.

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Antonio

8 months ago

I think this question is trying to test our understanding of the regulatory environment surrounding money services businesses. From what I know, option A seems incorrect - MSBs tend to have a higher money laundering risk compared to traditional financial institutions.

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ACFE Exam CFE-Law Topic 1 Question 33 Discussion

Contribute your Thoughts:

Hayley

Solange

Brande

Yolande

Junita

Rebeca

Santos

Katina

Tiffiny

Santos

Katina

Paris

Nettie

Lynelle

Lauran

Benedict

Willodean

Hillary

Belen

Janae

Antonio