Cryptoasset Anti-Financial Crime Specialist (CCAS) Certification Practice Test

What does the term "money mule" refer to?

1. A person who receives and moves money that came from victims of fraud

2. Someone who engages in smurfing

3. A method of trade-based money laundering

4. Someone who makes bulk transactions

The correct answer is: A person who receives and moves money that came from victims of fraud

The term "money mule" specifically describes an individual who is recruited to receive and transfer money that is often obtained through fraudulent means. Money mules typically act as intermediaries, moving illicit funds on behalf of criminals, often without fully understanding that they are participating in fraud. These individuals may be persuaded through various tactics, such as false job offers or promises of quick financial gain. This role is critical in the structure of financial crime, as it helps facilitate the laundering of money and obscures the origin of the funds. In contrast, engaging in smurfing refers to a technique used to break down large amounts of money into smaller transactions to avoid detection. This does not directly relate to the role of a money mule. Similarly, trade-based money laundering involves misrepresenting commercial transactions to disguise illicit funds, which also diverges from the direct actions of a money mule. Lastly, while bulk transactions may involve larger sums of money being transferred or exchanged, they do not inherently indicate the behavior or actions of a money mule. The distinction lies in the specific involvement in transferring victims' money, which encapsulates the essence of a money mule's function in financial crime.