Practice Test Geeks(CCB) Certified Compliance and Business Specialist Practice Test
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Financial Crime Prevention Flashcards

7 cards from real CCB practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Financial Crime Prevention flashcards as text

  1. Which red flag MOST strongly suggests potential terrorist financing rather than traditional money laundering?

    Answer: Small transactions with no apparent economic purpose sent to high-risk regions

    Terrorist financing often involves small amounts with no clear business rationale transferred to conflict-affected or high-risk jurisdictions, unlike money laundering which typically involves large sums.

  2. Under the FCPA (Foreign Corrupt Practices Act), which of the following is a permissible payment to a foreign government official?

    Answer: A payment to speed up routine governmental actions (facilitating payment)

    The FCPA's 'facilitating payment' exception permits payments made to expedite or secure routine non-discretionary governmental actions, though many companies prohibit these anyway.

  3. A bank's transaction monitoring system generates an alert for a customer who regularly deposits $9,500 in cash. This pattern MOST likely indicates:

    Answer: Structuring to evade CTR reporting

    Repeated deposits just below the $10,000 CTR threshold is a classic structuring pattern, which is itself a federal crime regardless of the source of funds.

  4. Which sanction screening list maintained by OFAC includes individuals and entities with whom US persons are generally prohibited from doing business?

    Answer: Specially Designated Nationals (SDN) List

    The SDN List identifies persons and entities whose assets are blocked and with whom US persons are prohibited from transacting.

  5. In the context of beneficial ownership, the FinCEN Customer Due Diligence Rule requires covered financial institutions to identify beneficial owners who own what minimum percentage of a legal entity customer?

    Answer: 25%

    Under the FinCEN CDD Rule, financial institutions must identify natural persons who own 25% or more of equity interests in a legal entity customer.

  6. Which term describes a financial institution that provides banking services to another financial institution, often cross-border, creating layered risk exposure?

    Answer: Correspondent bank

    Correspondent banking involves one bank providing services on behalf of another, which can create risk if the respondent bank has weaker AML controls.

  7. An employee reports that a manager instructed them to NOT file a SAR on a large suspicious transaction because 'the customer is important.' The compliance officer should FIRST:

    Answer: File the SAR and document the manager's instruction

    SAR filing is a legal obligation; compliance officers must file required SARs regardless of internal pressure and should document such interference.