CFCS ACFCS Financial Crime SpecialistExam exact Exam Questions

Financial Crime SpecialistExam

Last Update 17 hours ago Total Questions : 175

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Question # 21

A company has a number of Special Purpose Vehicles (SPVs) registered in the Cayman Islands Which legitimate purpose would the company use SPVs for as part of its operating structure?

To eliminate some of the risk held at the parent company

To obscure Ihe relationships which the company has offshore

To limit regulatory supervision in their home country

To evade tax liability on certain revenue streams

Question # 22

In the context of Compliance Programs and Controls, which of the following statements best describes the purpose of an organizational overview of financial crime controls?

To ensure strict adherence to internal audit procedures.

To identify potential vulnerabilities and risks within the organization's operations.

To facilitate efficient communication between different departments.

To solely focus on regulatory compliance without considering business objectives.

Question # 23

You work in financial crime compliance for a money services business (MSB) with an international network of agents whose core business is handling remittance transactions. As part of your periodic update to your risk assessment you are reviewing payment corridors and customer types.

Which payment corridor is MOST likely to present the highest risk?

Payments by domestic workers from the United Arab Emirates to the Philippines

Payments by small business owners from the US to Yemen

Payments by seasonal agricultural workers from Canada to the Caribbean

Payments by temporary visa holders in the tech industry from countries in the European Union to India

Question # 24

Mr. Johnson, the compliance officer of XYZ Bank, is conducting an organizational overview of financial crime controls. During his review, he notices discrepancies in the transaction monitoring process. What is the most appropriate action for Mr. Johnson to take next?

Ignore the discrepancies as they might be insignificant.

Immediately report the discrepancies to senior management and the relevant authorities.

Discuss the discrepancies with the employees responsible for transaction monitoring.

Wait for the next compliance audit to address the discrepancies.

Question # 25

Which scenario is an example of the placement stage of money laundering?

A multiple lax refund scheme fraudster transfers the proceeds of his illicit tax refund from a prepaid debit card to a foreign bank account through an online funds transfer service

A Ponzi scheme operator uses his debit card associated with his British Virgin Islands bank account to withdraw cash from an ATM machine in the U.S.

A money laundering organization moves illicit drug proceeds into the U S financial system through a wire transfer into the correspondent account of a Guatemalan Bank domiciled at a U S financial institution

A Mexican money broker deploys couriers across the U S border where they deposit drug cash into the U S National Bank of San Diego

Question # 26

A law firm realizes that its confidential information has been leaked to outsiders, causing the firm to lose court cases and clients The information is believed to have been taken from a password-protected shared file located on the company's servers, which can only be accessed via internal network connections Investigations thus far indicate that an employee was involved in the data breach.

Which are Ihe MOST effective steps the firm could lake lo prevent further loss of data? Choose 2 answers

Disable USB ports on firm computers so no information can be removed from them

Update the firm's code of ethics and require all employees to sign an acknowledgement of understanding

Install security cameras to monitor the law firm premises

Set up a program to monitor access to all shared files and alert IT when employees transfer large amounts of data

Question # 27

Which two features of hawala make it particularly attractive to terrorist financing? Choose 2 answers

The hawala system generates a great deal of profits often used for terrorist financing

The nature of the hawala system is based on trust making formal records unnecessary

The value of the transaction can be transferred across jurisdictions without the need for a hard currency transfer

Hawala utilizes wire transfers thereby making it harder for authorities to track

Question # 28

You work in cybersecurity lor a chain of retail stores. An employee in your security team has recently notified you of a potentially serious issue with the point of sale (POS) systems which run on the company s network Upon reviewing data being transmitted Irom the POS systems the employee has detected indicators that malware designed to scrape credit and debit card information is being run on the systems.

You immediately mobilize your cyber incident response team and begin investigating You discover thai the malware infection is widespread and that numerous stores are affected.

In the course of the investigation you discover the following information Which is the MOST likely vulnerability that led to this cybersecurity incident?

Your company had not recently run password cracking tests against the portals used to log in to the POS systems

The software applications supporting the POS system were configured to automatically install updates when available

The network running the POS system was also used for Ihe online portal that employees used to log their hours

Employees at several stores were accessing unsecured Wi-Fi networks during work hours on their personal devices

Question # 29

You are a financial crime specialist who has been asked to investigate allegations of internal fraud at a construction supplies manufacturer Managers believe one or more employees are working with outsiders to siphon off company funds, but have little information on how it is happening.

The company s sales have grown significantly in recent months and it is expanding the geographic area in which it operates It relies on a large number of third parties to conduct its operations, including distributors and sales agents You have started your investigation by examining invoices and other payment records made by the manufacturing company to third parties.

Which record would you prioritize as MOST suspicious?

Payment records to a new sales agent that demonstrate steadily increasing commissions requests over the past six months

invoices paid to a distributor that include sizable reimbursements lor unspecified travel expenses

Transaction records that show commission checks larger than any other commission payments were issued to the most experienced sales agent

Sales contracts that indicate a number ol new distributors in a city in wh.ch the manufacturer did not previously operate

Question # 30

During a training session on OFAC compliance, an employee asks about the consequences of processing transactions involving individuals or entities designated under OFAC sanctions programs. What is the most accurate response to the employee’s inquiry?

Processing transactions involving individuals or entities designated under OFAC sanctions programs may result in civil penalties but not criminal charges.

Processing transactions involving individuals or entities designated under OFAC sanctions programs is permissible if authorized by senior management.

Processing transactions involving individuals or entities designated under OFAC sanctions programs may result in both civil and criminal penalties.

Processing transactions involving individuals or entities designated under OFAC sanctions programs is permissible if conducted through offshore accounts.