ACFE CFE-Investigation Exam With Confidence Using Practice Dumps

Detailed Explanation with Extracts = The Fraud Examiners Manual states:

“When reporting the results of a fraud examination, it is best to include copies (not originals) of important documents in the formal report”.

Originals should be safeguarded separately for evidence; reports should use copies.

Therefore, the statement is true.

The Financial Action Task Force (FATF) Recommendations, as cited in the Fraud Examiners Manual, require enhanced due diligence in correspondent banking relationships. Specifically, banks must “avoid correspondent banking with shell banks” and ensure the foreign institution is properly licensed and regulated.

This means financial institutions must confirm that the foreign correspondent bank holds the necessary licenses or certifications to operate legitimately.

Other options (branch addresses, tax statements, or client loan profiles) are not mandated under FATF’s correspondent banking due diligence requirements. The most critical factor is verifying the correspondent institution’s legal authorization (licenses/certifications) to prevent money laundering and terrorist financing.

The CFE Prep Guide clarifies:

“A fraud response plan outlines the actions… when suspicions of fraud have arisen. Because every fraud is different, the response plan should not outline how a fraud examination should be conducted. Instead, response plans should help organizations manage their responses and create environments to minimize risk and maximize the potential for success”.

Thus, statement D is false.