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Certified AML Fintech Compliance Associate (CAFCA) Exam With 100% Correct And Verified Answers
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Certified AML Fintech Compliance Associate (CAFCA) Exam With 100% Correct And Verified Answers
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Certified AML Fintech ComplianceAssociate (CAFCA) Exam With 100%
Correct And Verified Answers
What is Financial Crime? - Correct Answer-Illegal activities that
typically are economically motivated, such as money laundering,
terrorist financing, sanctions, fraud, bribery, corruption, and tax
evasion
Name the three basic stages of money laundering. - Correct Answer-
Placement, layering, and integration
State the key differences between money laundering and terrorist
financing. - Correct Answer-Terrorist financing uses funds to
support terrorist activities, but the funds are not necessarily derived
from illegal activities. Money laundering always involves the
proceeds of illegal activities, typically committed by the ultimate
beneficiaries of the funds.
What are the main types of sanctions and who do they target? -
Correct Answer-Financial, economic, and trade. They generally
target individuals, organizations, and countries.
List the three major reasons people commit fraud, and what this
model is called. - Correct Answer-The three major reasons are
pressure, opportunity, and rationalization. This model is referred to
as the "Fraud Triangle".
Name two important pieces of anti-bribery and corruption
legislation with extra-territorial reach. - Correct Answer-The
Foreign Corrupt Practices Act in the US and The UK Bribery Act
2010.
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, State two differences between tax avoidance and tax evasion. -
Correct Answer-Tax avoidance uses legal practices to reduce taxes
owed, whereas tax evasion uses illegal practices to evade paying
taxes owed.
Name an example of politically exposed persons (PEPs). - Correct
Answer-Examples of PEPs include heads of state or heads of
government, senior politicians, senior government, judicial and
military officials, senior executives of state-owned corporations, and
important political party officials, as well as their families and close
associates. Usually, PEP positions are specified in each jurisdiction's
AML regulation.
State an example of high-risk customers that Fin Techs might
encounter. - Correct Answer-Examples include customers who sign
up using false identities, customers who lie about the purpose of
business relationships, front companies, companies with complex
ownership structures, and customers linked to organized crime
groups.
Name some jurisdiction risks and red flags in the FinTech sector. -
Correct Answer-Jurisdictions with higher risk include those with
poor AML regulations, high levels of corruption, inadequate
frameworks to prevent financing of terrorism, and economic
sanctions in place. Jurisdictions that are tax havens and those
known to host shell companies are also high risk.
Why are Fin Techs often considered to be high-risk companies? -
Correct Answer-Because of the lack of face-to-face encounters and
the speed with which a person can access financial products.
What are some Fin Tech risks and red flags? - Correct Answer-Non
face-to-face customer interactions and onboarding, cryptocurrencies
and anonymity, faster payments, new technologies and their
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