100+ Free ICA AML Cert Practice Questions

Pass your ICA Certificate in Anti Money Laundering exam on the first try — instant access, no signup required.

✓ No registration✓ No credit card✓ No hidden fees✓ Start practicing immediately

Approximately 75-80% Pass Rate

100+ Questions

100% Free

Loading practice questions...

Same family resources

Explore More ICA Specialist Compliance Certificates (UK)

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

ICA Specialist Certificate in Trade Based Money Laundering (International Compliance Association, UK)

Practice Questions112 questions

ICA Certificate in Compliance (International Compliance Association, UK)

Practice Questions100 questions

ICA Certificate in Financial Crime Prevention (International Compliance Association, UK)

Practice Questions100 questions

ICA Certificate in KYC and CDD (International Compliance Association, UK)

Practice Questions100 questions

ICA Certificate in Managing Sanctions Risk (International Compliance Association, UK)

Practice Questions100 questions

ICA Specialist Certificate in Conduct Risk

Practice Questions100 questions

2026 Statistics

Key Facts: ICA AML Cert Exam

Exam Questions

ICA Official Syllabus

60m

Time Limit

ICA Official Syllabus

70%

Pass Mark

ICA

£765

Course & Exam Fee

ICA

100

Practice Questions

OpenExamPrep

The ICA Certificate in AML exam features 25 multiple-choice questions with a 1-hour time limit and a 70% passing threshold. Course fee is £765. Candidates are tested across money laundering stages/typologies, UK legislation (POCA 2002, MLRs 2017), customer due diligence (CDD/EDD/PEPs), and SAR reporting procedures.

Sample ICA AML Cert Practice Questions

Try these sample questions to test your ICA AML Cert exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which phase of money laundering specifically involves introducing illicitly derived physical currency into the financial system for the first time?

A.Placement

B.Layering

C.Integration

D.Structuring

Explanation: Placement is the initial stage of money laundering, where illegal physical cash is introduced into financial institutions, retail businesses, or foreign exchanges to distance it from its criminal source.

2What is the primary objective of the 'Layering' stage in money laundering?

A.To deposit cash into a retail bank account

B.To obscure the audit trail by creating complex financial transactions

C.To purchase real estate using clean funds

D.To report suspicious transactions to the National Crime Agency

Explanation: Layering deliberately creates multiple layers of financial transactions (such as wire transfers, currency exchanges, and investments) to hide the origin, ownership, and paper trail of illicit funds.

3An individual purchases a luxury commercial property using funds that passed through offshore accounts and shell company loans. The property generates legitimate rental yield. Which stage of money laundering is represented by the acquisition of this property?

A.Placement

B.Layering

C.Integration

D.Pre-placement

Explanation: Integration is the final stage where previously laundered funds are invested into legitimate assets (such as real estate or businesses) so they appear fully integrated into the clean economy.

4What is the term given to the technique of splitting large amounts of criminal cash into small deposits under statutory reporting limits across multiple bank branches?

A.Round-tripping

B.Smurfing or Structuring

C.Trade mis-invoicing

D.Cuckoo smurfing

Explanation: Smurfing (or structuring) involves deploying multiple individuals ('smurfs') or making repeated small cash deposits below mandatory reporting thresholds to avoid triggering bank AML alerts.

5A criminal uses a cash-intensive retail business, such as a restaurant or car wash, to commingle illegal cash proceeds with legitimate daily sales. Which typological vulnerability is being exploited?

A.Trade-based over-invoicing

B.Commingling of funds in cash-intensive businesses

C.Nested correspondent banking

D.Loan-back scheme

Explanation: Cash-intensive businesses provide natural cover for money laundering because large cash receipts are expected, allowing illicit cash to be commingled with legitimate sales and deposited into bank accounts without suspicion.

6Which scenario best exemplifies Trade-Based Money Laundering (TBML) via over-invoicing?

A.An importer pays £500,000 for a shipment of goods worth £100,000, transferring the surplus to a colluding overseas exporter

B.An exporter ships £500,000 worth of goods but invoices the buyer £100,000

C.A customer deposits cash at five different bank branches on the same day

D.A business owner inflates employee payroll entries to withdraw cash

Explanation: Over-invoicing occurs when the price on a trade invoice is systematically overstated compared to market value, enabling the buyer to legally transfer excess funds overseas to the seller under the cover of a trade payment.

7What key feature distinguishes a 'shell company' from a 'front company' in financial crime investigations?

A.A shell company has active commercial operations, whereas a front company has no physical presence

B.A shell company is a corporate entity without independent business operations or significant assets, while a front company is an active operating business used to disguise illicit activities

C.Shell companies are illegal to incorporate, whereas front companies are always fully compliant

D.Front companies can only be established in offshore secrecy havens

Explanation: A shell company has no physical presence, employees, or commercial trade (it exists only on paper). A front company is a fully functioning business with real commercial operations used to blend illegal funds with legal revenues.

8In a 'loan-back' money laundering scheme, how does the criminal make illicit funds appear legitimate?

A.By transferring illicit cash abroad to a controlled offshore company, which then 'lends' the funds back to the criminal's domestic business

B.By applying for a mortgage with a high street bank using forged pay slips

C.By taking out a loan from a regulated credit union and defaulting on repayments

D.By securing a bank guarantee using government bonds

Explanation: In a loan-back scheme, a criminal transfers illicit money to an offshore shell entity they secretly control. That entity then grants a formal 'loan' back to the criminal or their onshore company, creating an apparent legal origin and tax-deductible interest payments.

9Why is the high-value real estate sector particularly attractive to money launderers?

A.Real estate transactions are exempt from UK Money Laundering Regulations

B.Large sums of money can be integrated in single transactions, and property values can be manipulated or held via complex corporate vehicles

C.Property conveyancing does not require client identity verification

D.Land Registry records are completely anonymous under UK law

Explanation: Real estate allows large volumes of illicit funds to be moved in single transactions, offers asset stability, and allows ownership to be obscured behind offshore holding structures or nominees.

10What primary AML risk is associated with the use of cryptocurrency 'mixers' or 'tumblers'?

A.They convert virtual assets into physical fiat cash instantly at ATMs

B.They pool and blend crypto transactions from multiple users to break blockchain traceability and obscure transaction history

C.They allow unverified users to issue fiat currency backed by central banks

D.They automatically report suspicious wallet transactions to law enforcement

Explanation: Mixers (tumblers) combine crypto funds from hundreds of thousands of addresses, obfuscating the link between the sender and receiver wallets to disrupt blockchain forensic analysis.

About the ICA AML Cert Exam

The ICA Certificate in Anti Money Laundering is an internationally recognised qualification providing a solid foundation in AML principles, UK legal and regulatory frameworks, customer due diligence, suspicious activity reporting, and financial crime risk management.

Questions

25 scored questions

Time Limit

1 hour

Passing Score

70%

Exam Fee

£765 (International Compliance Association (ICA))

ICA AML Cert Exam Content Outline

25%

Money Laundering Typologies & Stages

Placement, layering, and integration stages; cash-intensive businesses, smurfing/structuring, trade-based money laundering (TBML), shell companies, crypto assets, and real estate typologies.

25%

Legal & Regulatory Frameworks

UK Proceeds of Crime Act 2002 (POCA), Money Laundering Regulations 2017 (MLRs 2017), Terrorism Act 2000, JMLSG Guidance, FATF 40 Recommendations, and OFSI financial sanctions.

25%

Customer Due Diligence & Risk-Based Approach

Standard CDD, Simplified Due Diligence (SDD), Enhanced Due Diligence (EDD), Politically Exposed Persons (PEPs), Ultimate Beneficial Ownership (UBO), Source of Funds (SoF) vs Source of Wealth (SoW), and ongoing monitoring.

25%

Suspicious Activity Reporting & MLRO Duties

Internal and external SAR submission to the UK FIU (NCA), Defence Against Money Laundering (DAML), tipping off (s.333A), failure to disclose (s.330), MLRO governance, record-keeping, and firm-wide risk assessments.

How to Pass the ICA AML Cert Exam

What You Need to Know

Passing score: 70%
Exam length: 25 questions
Time limit: 1 hour
Exam fee: £765

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

ICA AML Cert Study Tips from Top Performers

1Memorize the distinct characteristics of Placement, Layering, and Integration.

2Understand the primary money laundering offences under Sections 327, 328, and 329 of POCA 2002.

3Know the statutory thresholds for UBO identification (25% ownership/voting rights under MLRs 2017).

4Distinguish between Source of Funds (how specific funds for a transaction were generated) and Source of Wealth (total origin of customer net worth).

5Learn the DAML consent timelines: 7 working days notice period and 31 calendar days moratorium period.

6Practise with 25-question timed mock sets to build confidence for the online assessment.

Frequently Asked Questions

How many questions are on the ICA Certificate in AML exam?

The official ICA Certificate in Anti Money Laundering assessment contains 25 multiple-choice questions.

What is the pass mark for the ICA AML Certificate?

The pass mark is 70%, meaning you must correctly answer at least 18 out of 25 questions.

How long is the ICA AML Certificate examination?

Candidates are given 1 hour (60 minutes) to complete the online assessment.

What topics are covered on the ICA AML exam?

The syllabus covers four key areas: Money Laundering Typologies & Stages, Legal & Regulatory Frameworks (POCA 2002, MLRs 2017, JMLSG), Customer Due Diligence (CDD, EDD, PEPs, UBO), and SAR Reporting & MLRO Duties.

How much does the ICA AML Certificate cost?

The total fee is £765 (+ £195 ICA membership), which includes online course access, ICA student membership, training materials, and one examination entry.

Is the ICA Certificate in AML suitable for beginners?

Yes, it is an entry-level professional certification designed both for individuals new to AML and for operational staff needing a formal grounding in compliance.