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CAFCA FINAL EXAM
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CAFCA FINAL EXAM 2024-2025 financial crime Money laundering, terrorist financing, sanctions, fraud, extortion, corrup tion, and tax evasion are all examples of illegal activities that are typically mo tivated by economic interests. Money laundering encompasses three fundamental phases: Integration, Layering, and Placement What is the definition of terrorist financing? Terrorist financing is the utilization of funds to support terrorist activities, but the sources of these funds are not inherently illegal. What is the definition of money laundering? The proceeds of unlawful activities, which are typically committed by the ult imate beneficiaries of the funds, are always involved in money laundering. Primary sanctions and their intended recipients? Trade, economics, and finance. They typically concentrate on countries, organizations, and individuals. There are three primary causes why individuals engage in fraudulent activities. Pressure, opportunity, and rationalization are the terms used to describe this m odel. The Fraud Triangle is the name given to this model. Please identify two significant pieces of antibribery and corruption legislat ion that have an extended territorial scope. The United States' Foreign Corrupt Practices Act and the United Kingdom's Bribery Act 2010 What is the distinction between tax avoidance and tax evasion? Tax evasion is the use of illegal practices to circumvent paying taxes owed, while tax avoidance is the use of legal practices to reduce taxes owed. Please provide an example of PEPs. Examples of PEPs include Heads of state or government; senior politicians; senior government offici als; judicial and military officials; senior executives of state-owned corpo rations; and significant political party officials, as well as their families and clos e associates. In general, the AML regulations of each jurisdiction specify the positions of PEPs. Provide an illustration of a high-risk customer that FinTechs may encount er. Examples consist of customers who establish accounts under false identities, customers who fabri cate the purpose of their business relationships, front companies, companie s with intricate ownership structures, customers associated with organized crimin al organizations. Please provide a list of jurisdictional hazards and red flags in the FinTech secto r. Jurisdictions that pose a greater risk include Inadequate anti-money laundering regulations, Excessive corruption Economic sanctions and inadequate frameworks to prevent the financing of terrorism Jurisdictions that are recognized as tax havens those that are known to host phantom companies What are the reasons that FinTechs are frequently regarded as high-risk compan ies? Absence of in-person interactions The rapidity with which an individual can obtain financial products What are some of the risks and red flags associated with FinTech ? Non-face- to-face consumer interactions and onboardingThe benefits of buying summaries with Stuvia:
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