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Sample ICA TBML Specialist Cert Practice Questions

Try these sample questions to review concepts for the ICA TBML Specialist Cert exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 112+ question experience with AI tutoring.

1According to the Financial Action Task Force (FATF), what is the definition of Trade-Based Money Laundering (TBML)?
A.The process of disguising the proceeds of crime and moving value through the use of trade transactions in an attempt to legitimize their illicit origins
B.The physical smuggling of cash across international borders inside shipping containers without documentation
C.The failure to pay applicable customs duties on legally imported consumer electronics
D.The electronic transfer of funds between commercial bank accounts using SWIFT MT103 messages
Explanation: FATF defines Trade-Based Money Laundering (TBML) as the process of disguising illicit proceeds and moving value through the exploitation of trade transactions to legitimize their origins.
2Which trade finance instrument involves a undertaking issued by a bank at the request of an importer (applicant) to pay an exporter (beneficiary) upon presentation of complying documents?
A.Letter of Credit (LC) / Documentary Credit
B.Open Account Payment
C.Promissory Note
D.Bill of Exchange without documents
Explanation: A Letter of Credit (LC) is a financial institution's irrevocable commitment to pay the beneficiary provided complying shipping documents specified in the credit are presented.
3What primary risk indicator occurs when an invoice significantly overstates the true market value of exported goods?
A.Over-invoicing, allowing the exporter to transfer excess illicit funds out of the importing country to the exporter
B.Under-invoicing, allowing the importer to transfer excess value overseas
C.Phantom shipping, where no physical goods are loaded
D.Multiple invoicing, where multiple payments are made on one shipment
Explanation: Over-invoicing involves pricing goods above fair market value, enabling the buyer/importer to make an inflated payment to the seller/exporter, transferring excess funds to the seller.
4What is 'Under-Invoicing' in trade-based money laundering typologies?
A.Pricing goods below fair market value on the invoice, enabling the buyer to receive value greater than the invoiced payment
B.Pricing goods above fair market value to transfer money out of the buying jurisdiction
C.Failing to issue an invoice for a legitimate transaction
D.Canceling an invoice after shipment has cleared customs
Explanation: Under-invoicing understates the true value of goods, allowing the exporter to transfer excess value (the difference between actual market value and invoice price) to the buyer.
5What international rules published by the International Chamber of Commerce (ICC) govern Letters of Credit worldwide?
A.Uniform Customs and Practice for Documentary Credits (UCP 600)
B.Financial Action Task Force 40 Recommendations
C.United Nations Convention on Contracts for the International Sale of Goods (CISG)
D.Wolfsberg Anti-Money Laundering Principles
Explanation: UCP 600 (Uniform Customs and Practice for Documentary Credits) published by the ICC sets out the standard contractual rules for Letters of Credit internationally.
6What is a 'Phantom Shipment' in trade-based financial crime?
A.A fraudulent trade scheme where documentation (bills of lading, invoices) is fabricated and processed for payment without any physical goods being shipped
B.A shipment of goods transported by stealth military vessels
C.A consignment of damaged goods lost at sea due to severe weather
D.A delivery of goods made after office hours without security personnel
Explanation: Phantom shipments involve completely fake trade documentation created solely to justify illegal wire transfers of money between accomplices without actual cargo movement.
7What key limitation faced by banks in detecting TBML is highlighted by the Wolfsberg Group Trade Finance Principles?
A.Banks deal only in documents and payments; they do not physically inspect goods or verify cargo weights at ports
B.Banks are legally prohibited from reviewing commercial invoices
C.Banks do not have access to SWIFT messaging networks
D.Customs authorities forbid banks from filing suspicious activity reports
Explanation: The Wolfsberg Group emphasizes the fundamental principle (reflected in UCP 600 Article 5) that banks deal in documents, not in goods. Banks rarely see physical shipments, relying on paper/electronic records.
8What is 'Multiple Invoicing' in trade-based money laundering?
A.Issuing duplicate invoices for a single physical shipment to justify multiple wire payments for one trade deal
B.Issuing an invoice in two different foreign languages
C.Splitting a single order into multiple sub-invoices for accounting convenience
D.Sending monthly reminder statements for overdue commercial debts
Explanation: Multiple invoicing uses duplicate or cloned invoices for one legitimate shipment to execute multiple illegal money transfers across different financial institutions.
9What document acts as a title document to goods, evidence of contract of carriage, and receipt of goods in sea freight trade?
A.Bill of Lading (specifically a negotiable / order Bill of Lading)
B.Commercial Invoice
C.Certificate of Origin
D.Packing List
Explanation: A negotiable (to order) Bill of Lading represents document of title to the goods; holding the original bill confers legal ownership and control of the cargo.
10What is 'Dual-Use Goods' risk in international trade compliance?
A.Goods, software, or technology that can be used for both legitimate civilian and illegal military/proliferation purposes
B.Products sold under a buy-one-get-one-free promotional offer
C.Machinery designed to run on both petrol and diesel fuel
D.Cargo packaged in reusable wooden pallets
Explanation: Dual-use items (e.g. specialized centrifuges, high-grade aluminum alloys, specific chemicals) can be used for normal industrial applications or weaponized for WMD proliferation.

About the ICA TBML Specialist Cert Exam

The ICA Specialist Certificate in Trade Based Money Laundering is a professional qualification providing a thorough understanding of trade finance instruments, TBML typologies, price anomaly detection, vessel screening, and sanctions compliance.

Exam sponsor: International Compliance Association (ICA). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

25 questions

Time Limit

1 hour

Passing Score

70%

Exam / Certification Fees

£765

Exam sponsor website

Reported exam pass rate: Not published by ICA.. The ICA does not publish pass rates for the Specialist Certificate assessments. The pass mark is 70% (18 of 25 questions correct). Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

20%

Trade and Receivables Finance

Letters of credit, bills of lading, open account trading, documentary collections, supply chain finance, and transport documentation.

15%

Money Laundering & Terrorist Financing Fundamentals

Core concepts of ML/TF in trade, placement, layering, integration, and FATF trade-based money laundering definitions.

15%

Laws, Regulations & Guidance

FATF recommendations, Wolfsberg Group trade guidance, UK Money Laundering Regulations, FCA guidance, and ICC rules.

20%

Managing TBML Risk

Customer due diligence on trade counterparties, dual-use goods, vessel tracking (AIS), price verification, and over/under-invoicing.

15%

Money Laundering Typologies

Phantom shipments, multiple invoicing, over/under-invoicing, misrepresentation of goods/quantity, and trade-based hawala.

15%

Sanctions and Emerging Risks

Trade sanctions, export controls, dual-use items, proliferation financing, circumvention techniques, and digital trade risks.

Preparing for the ICA TBML Specialist Cert Exam

What You Need to Know

  • Passing score: 70%
  • Exam length: 25 questions
  • Time limit: 1 hour
  • Exam / certification fees: £765 Official sources

Using Our Practice Resources

  • Work through all 112 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

ICA TBML Specialist Cert: Suggested Study Strategy

1Understand the key trade instruments (Letters of Credit, Bills of Lading, Open Account) and UCP 600 Article 5.
2Recognize key TBML typologies: over/under-invoicing, phantom shipments, multiple invoicing, and trade-based hawala.
3Learn trade risk mitigants: AIS vessel tracking, price verification against market benchmarks, and dual-use goods screening.

Frequently Asked Questions

How many questions are on the ICA Specialist Certificate in Trade Based Money Laundering exam?

The official ICA Specialist Certificate in Trade Based Money Laundering assessment contains 25 multiple-choice questions.

What is the pass mark for the ICA TBML Specialist Certificate?

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

How long is the ICA TBML examination?

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

What topics are covered on the ICA TBML exam?

The syllabus covers six areas: Trade and Receivables Finance, ML/TF Fundamentals, Laws and Guidance, Managing TBML Risk, Money Laundering Typologies, and Sanctions/Emerging Risks.

How much does the ICA Specialist Certificate in Trade Based Money Laundering cost?

The course fee is £765 plus a separate 12-month ICA membership fee of £195, which includes online course access and one examination entry.