ACFCS Financial Crime Specialist Sample Questions:

1. During a sanctions compliance audit, it is discovered that ABC Company, a corporate client of a financial institution, has subsidiaries operating in countries subject to comprehensive sanctions. What is the financial institution's obligation regarding its business relationship with ABC Company?

A) Continue business relationships with ABC Company while monitoring transactions involving its subsidiaries.
B) Seek approval from senior management before taking any action regarding the business relationship.
C) Immediately terminate all business relationships with ABC Company and its subsidiaries.
D) Conduct enhanced due diligence on ABC Company and its subsidiaries to assess sanctions risk.

2. You are a compliance officer at a payment card provider You have been dealing with a number of suspected identity theft cases and are reviewing your policies and procedures to highlight red flags within customer behaviors that might be indicative of stolen identities.
Which are red flags in detecting and investigating identity theft? Choose 2 answers

A) The person presenting the identification seems to be much younger than his photo
B) Mail sent to the customer is returned repeatedly as undeliverable even though transactions are being conducted on the account
C) An account that has been inactive for a long time has been closed by the customer
D) The area code of the customer s personal phone number does not match the area code of his business phone number

3. A U.S. citizen applies lo open a bank account in a local bank in a non-US jurisdiction with a Model II Agreement with an initial deposit of S75.000 USD The bank has a substantial correspondent banking relationship with U.S banks and wants to remain in good standing with its U S counterparts.
Which statement is true about this bank?

A) The bank must refuseto open the account unless the US citizen has filed a Form 8938 with his US tax return
B) The bank must filewithFINCENnotifyingthem of the opening of theaccount
C) The bank is required to report certain details about the account to the U S Internal Revenue Service (IRS)
D) The bank must institute a 30% withholding on the account

4. Mr. X is a business consultant who specializes in helping European companies expand their operations into Latin America. You are part of a law enforcement unit investigating Mr. X who is under suspicion of assisting his clients to conceal bribe payments made to government officials in Latin American countries.
Mr. X is knowntocontrol a numberofdifferent companies andtheirrelated subsidiaries within severalLamAmerican countries. You are tracing (fundsthat originated from an account held by one of Mr.X's companies in the UK in an effort to establish that he is involved in the corruption and money laundering scheme.
Which would provide the BEST indicatorThatMr.X is helping to launder funds connected to bribery?

A) Funds transferred into the account from a nondescript business with little information available about it
B) Funds transferred to business associates of Mr.X located in the European Union
C) Funds whose source can be traced to a corporate account in a country located in the European Union
D) Funds that are being used in the operation of a business in ahigh-riskjurisdiction

5. During a routine review, a compliance officer at a financial institution discovers that one of its customers has provided false information to evade OFAC sanctions. What is the most appropriate action for the compliance officer to take?

A) Conduct enhanced due diligence on the customer and notify senior management of the findings.
B) Advise the customer to correct the false information and continue business as usual.
C) Ignore the false information if it does not directly impact the institution's operations.
D) Immediately terminate the customer's account and report the incident to OFAC.

Solutions: