Corporate Fraud and Internal Control Workbook: A Framework for Prevention

Chapter Twelve

Industry-Related Fraud Opportunities

AS WITH ALL FRAUDS, each industry becomes a target for more directed frauds, and the control mechanisms become more specialized to mitigate the risks of such fraud opportunities.

QUESTIONS: FILL IN THE BLANKS

Refer to Chapter 12 in Corporate Fraud and Internal Control: A Framework for Prevention.

1. ___________ involves the processing of a financial transaction representing the proceeds of unlawful activity in such a manner to conceal the nature, source, or ownership of the proceeds or to avoid a legal requirement to report such a transaction.

2. In order to fight money laundering, financial institutions often are required to maintain a ___________ of any prescribed transactions with such information furnished to the appropriate authorities on request or as required.

3. Combating money laundering involves increased care in the area of

4. When applied at a customer level, ___________ is normally based on an analysis of ___________ behavior, particularly those behaviors associated with high-risk or high-value transactions.

5. With the volume of transactions entered into via banking systems, only the application of ___________ techniques using ___________ resources can effectively carry out anti–money laundering scrutiny to an acceptable level.

6. Most jurisdictions have a requirement that the ___________ be notified in a timely ...