CCB Financial Crime Prevention 4

Question 1

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

Accepted Answer

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

Answer

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.

Question 2

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

Accepted Answer

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

Answer

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

Question 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:

Accepted Answer

Structuring to evade CTR reporting

Answer

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.

Question 4

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

Accepted Answer

Specially Designated Nationals (SDN) List

Answer

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

Question 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?

Accepted Answer

25%

Answer

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

(CCB) Certified Compliance and Business Specialist Practice Test

(CCB) Certified Compliance and Business Specialist Practice Test

CCB Financial Crime Prevention 4