Through an annual review for an insured persons government-provided health insurance claims you determine that the applicant's eligibility has been consistently and significantly overstated. Further the medical justification reveals possible duplicate procedures within a short period of time All details and documents provided by the applicant are verified to be accurate and valid.
This type of fraud is usually initiated from which involved party?

• A. Service or health care provider
• B. No involved party, these are merely accidental errors in billing at the system level
• C. Health insurance company
• D. Beneficiary or claimant

Jane is a dual citizen of the United Stales and Country B a known lax haven, she has permanently relocated to Country B The lax authorities in the U.S. and Country B have a well-established cooperation agreement to reduce tax evasion.
Upon relocating in Country B she legally changed her name and obtained government identification in Country B's official language. She used this new identification to establish bank accounts in Country B. She created new shell companies and opened new business ventures which generated millions of dollars of income for her.
Jane files proper tax returns in Country B and discontinues filing U.S. income tax returns. Which statement is true?

• A. Considering she permanently moved to Country B she is only responsible for filing tax returns in Country B
• B. As a dual citizen she is responsible for filing tax returns in both the U.S. and Country B until she renounces her U.S. citizenship
• C. She broke U.S. tax laws by not notifying the institutions of her name change when opening new bank accounts in Country B
• D. She broke Country B's tax laws by changing her name prior to opening new accounts since Country B now cannot match her records with the U.S. tax authorities

You are an investigator in the compliance department of a bank in a border region. The country on the other side of the border has an active narcotics trade run by organized crime gangs operating on both sides of the border Recently, youhave become concerned your bank is being used by a narcotics gang to smuggle bulk cash out of your country.
Which evidence is Ihe strongest indicator that bulk cash smuggling is taking place?

• A. Your bank has logged a large number of transactions converting large denominations lo small denomination notes in its branches across the border
• B. Accounts at your bank have made a large number of wire transfers lo offshore jurisdictions
• C. Your bank has increased transfers of large-denomination notes in your country's currency to banks across the border
• D. There has been a sudden increase in deposit transactions from a third-party domestic bank to your bank

The Director of Purchasing at Company A in the US is in charge of purchasing raw materials for vehicle manufacturing. To his supervisors the director appears to live a lifestyle well above his annual salary at the company You are asked to perform a financial investigation lo identify any red flags in Ihe purchasing / inventory departments.
Which two are red flags? Choose 2 answers

• A. There is little excess inventory and the company has a high inventory turnover
• B. There has been an increase in inventory purchases but no increase in sales
• C. There is a high volume of purchases from new vendors
• D. There has been a decrease in inventory purchases but no decrease in sales