Exam (elaborations)
Certified AML Fintech Compliance Associate (CAFCA) Exam With 100% Correct And Verified Answers
- Course
- Institution
Certified AML Fintech Compliance Associate (CAFCA) Exam With 100% Correct And Verified Answers
[Show more]
Content preview
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.
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii Vendarsol
, 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
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii Vendarsol
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Vendarsol. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79373 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now
