CAFCA Test Questions with Complete Verified
Correct detailed Solutions Graded A+ latest
update 2025
What is the purpose of transaction monitoring --- correct precise
answers ---Manage financial crime risk
Generate alerts
Investigate certain activity
What is an accurate statement concerning KYC photo identification
solutions, as demonstrated by the N26 case? --- correct precise
answers ---KYC photo identification solutions are not comprehensive
if they cannot detect fake IDs.
What is the main purpose of transaction monitoring controls? ---
correct precise answers ---Manage financial risk
What is one difference between transaction monitoring and name
screening? --- correct precise answers ---Name screening is
performed prior to onboarding
,United Nations sanctions are an example of what type of sanctions
regime? --- correct precise answers ---Multilateral sanctions
What are the four research tips --- correct precise answers ---Assess
what you need
Explore to find answers
Organize to make meaningful
Present to inform and defend
Customer due diligence (CDD) categories --- correct precise answers -
--CDD encompasses the entire lifecycle of due diligence
Customer identification (often CIP)
Simplified due diligence (often SDD)
Standard due diligence for most customers
Enhanced due diligence (often EDD)
How do you select standard customer research sources --- correct
precise answers ---Attributes of reliable sources
Industry-recognized
Reputable and unbiased
Internal and external consistency
,Recent publication date
What is an unreliable source when doing CDD? --- correct precise
answers ---Unreliable sources
A registry that an organization pays to be listed in
Media in jurisdictions controlled by your subjects
Blogs or vlogs that express author's opinions
How do you document your research using an audit trail? --- correct
precise answers ---Document steps taken as part of your risk-based
approach
Include how you resolved any inaccuracies or false matches
Properly store the data for privacy and security purposes
As an AML investigator it is your job to: --- correct precise answers --
-Investigate and report facts
An AML investigator must investigate all suspicious activity, and
report the facts that support the activity. If something seems
suspicious, it probably is. It is not up to the investigator to determine
guilt or innocence, but to gather and report the facts.
, What is an accurate statement about customer due diligence? ---
correct precise answers ---The country of residence and nationality of
your customer will be risk-rated
What is "tipping off"? --- correct precise answers ---Telling the
subject of a SAR, or anyone who does not need to know, that a SAR has
been filed
Why is it important to filter the information you have gathered
through your research? --- correct precise answers ---To bring
together the most relevant and important pieces of information
Why is it important to document your research? --- correct precise
answers ---Because a search performed today might turn up different
results in several months' time, and so the process of your searches
can be evaluated for soundness
What is Duty to report --- correct precise answers ---Organization
must report suspicious behavior
Personal liability
Clear policies ensure clear reporting
Designated officer is responsible
Correct detailed Solutions Graded A+ latest
update 2025
What is the purpose of transaction monitoring --- correct precise
answers ---Manage financial crime risk
Generate alerts
Investigate certain activity
What is an accurate statement concerning KYC photo identification
solutions, as demonstrated by the N26 case? --- correct precise
answers ---KYC photo identification solutions are not comprehensive
if they cannot detect fake IDs.
What is the main purpose of transaction monitoring controls? ---
correct precise answers ---Manage financial risk
What is one difference between transaction monitoring and name
screening? --- correct precise answers ---Name screening is
performed prior to onboarding
,United Nations sanctions are an example of what type of sanctions
regime? --- correct precise answers ---Multilateral sanctions
What are the four research tips --- correct precise answers ---Assess
what you need
Explore to find answers
Organize to make meaningful
Present to inform and defend
Customer due diligence (CDD) categories --- correct precise answers -
--CDD encompasses the entire lifecycle of due diligence
Customer identification (often CIP)
Simplified due diligence (often SDD)
Standard due diligence for most customers
Enhanced due diligence (often EDD)
How do you select standard customer research sources --- correct
precise answers ---Attributes of reliable sources
Industry-recognized
Reputable and unbiased
Internal and external consistency
,Recent publication date
What is an unreliable source when doing CDD? --- correct precise
answers ---Unreliable sources
A registry that an organization pays to be listed in
Media in jurisdictions controlled by your subjects
Blogs or vlogs that express author's opinions
How do you document your research using an audit trail? --- correct
precise answers ---Document steps taken as part of your risk-based
approach
Include how you resolved any inaccuracies or false matches
Properly store the data for privacy and security purposes
As an AML investigator it is your job to: --- correct precise answers --
-Investigate and report facts
An AML investigator must investigate all suspicious activity, and
report the facts that support the activity. If something seems
suspicious, it probably is. It is not up to the investigator to determine
guilt or innocence, but to gather and report the facts.
, What is an accurate statement about customer due diligence? ---
correct precise answers ---The country of residence and nationality of
your customer will be risk-rated
What is "tipping off"? --- correct precise answers ---Telling the
subject of a SAR, or anyone who does not need to know, that a SAR has
been filed
Why is it important to filter the information you have gathered
through your research? --- correct precise answers ---To bring
together the most relevant and important pieces of information
Why is it important to document your research? --- correct precise
answers ---Because a search performed today might turn up different
results in several months' time, and so the process of your searches
can be evaluated for soundness
What is Duty to report --- correct precise answers ---Organization
must report suspicious behavior
Personal liability
Clear policies ensure clear reporting
Designated officer is responsible
