CAFCA Combined Exam Questions With Revised Correct Detailed Answers |ALREADY GRADED A+ PASS >> BRAND NEW VERSION!
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Course
CAFCA
Institution
CAFCA
CAFCA Combined Exam
Questions With Revised
Correct Detailed Answers
|ALREADY GRADED A+ PASS
>> BRAND NEW VERSION!
1) What is the difference between anti-fraud and AML monitoring? - ANSWER
Anti-fraud monitoring ultimately
aims to reduce an organization's
fraud losse...
CAFCA Combined Exam
Questions With Revised
Correct Detailed Answers
|ALREADY GRADED A+ PASS
>> BRAND NEW VERSION!
1) What is the difference between anti-fraud and AML monitoring? - ANSWER
Anti-fraud monitoring ultimately
aims to reduce an organization's
fraud losses. AML efforts are done mainly to
comply with regulations and ensure that an
organization is not used for money laundering.
2) Anti-fraud vs AML monitoring solutions - ANSWER Anti-fraud monitoring
Reduce fraud losses
AML monitoring
Comply with regulations
Prevent involvement
3) Why is it important to scale an organization's
transaction monitoring program along with its
,growth? - ANSWER To monitor evolving and new risks;
detect financial crime activity
among new customers, products, and
geographies; and quickly resolve open alerts.
4) What is meant by "financial inclusion" in the
context of AML obligations? - ANSWER Ensuring that legitimate customers
have access to financial systems,
even when they cannot provide all of the
information typically required. Organizations
must balance AML risks with support for financial inclusion required by law.
5) In what ways can a Fin Tech take a risk-based
approach to balance customer risk with
customer experience at onboarding? - ANSWER Focusing EDD measures on
customers who pose specific risks;
using technology to speed up the onboarding
process; allowing customers who are
considered low-risk to onboard with no
intervention; carefully designing onboarding
flow; and providing positive customer support.
6) What role does network analysis play in AML
investigations? - ANSWER Network analysis is an investigation
,tool that searches for common
traits among account holders and activities that
could link them as part of a network. Some
organizations build internal network analysis tools
whereas others use third-party investigative
software.
7) What are some ways to verify the credibility of
open source intelligence? - ANSWER Check accuracy, verify information
from multiple sources, consider the
motives of the source, be alert to bias, and
identify information provided by the subject.
8) Define "open source intelligence." - ANSWER The practice of collecting
information from published or otherwise publicly available sources, such as
media websites, blogs, corporate records, social
media, and satellite imagery.
9) What does critical thinking involve in the context
of financial crime investigations? - ANSWER It means avoiding personal
biases;
using varied, independent,
reputable, and relevant sources; checking for
accuracy and logic; considering opposing
, information; recognizing knowledge gaps; and substantiating conclusions.
10) What is the role of Reg Tech in AML programs? - ANSWER In AML, Reg
Tech is typically used to
support onboarding, transaction monitoring, investigations, reporting, and risk-
assessment and governance processes. A
Reg Tech can design products that solve an organization's specific data and
technical
problems.
11) What are some important considerations when
using third-party contractors and consultants in
AML programs? - ANSWER They can play a valuable role, but
require ongoing oversight and due
diligence checks; appropriate training; and the
appropriate level of access to internal systems
and data. Ensure they have no implicit biases.
Consider them equal or higher risk than the
organization's employees.
12) What is an "indemnity"? - ANSWER A formal legal document that is
commonly used in communication
between financial institutions, often to request
information. Indemnities facilitate the return of
funds from one organization to another when
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