CFCS CFCS Terrorist Financing & Sanctions Compliance

Question 1

Which US government agency administers and enforces economic and trade sanctions programs?

Accepted Answer

OFAC

Answer

FinCEN

Answer

FBI

Answer

FATF

Question 2

What is a key difference between money laundering and terrorist financing?

Accepted Answer

Terrorist financing may involve clean funds used for criminal purposes, while money laundering conceals funds already derived from crime

Answer

Terrorist financing always involves larger sums

Answer

Money laundering is not a federal crime

Answer

Terrorist financing only occurs internationally

Question 3

Under the USA PATRIOT Act, financial institutions must file a Suspicious Activity Report (SAR) related to suspected terrorist financing within how many days of detection?

Accepted Answer

30 days

Answer

15 days

Answer

45 days

Answer

60 days

Question 4

What is 'hawala' in the context of terrorist financing?

Accepted Answer

An informal value transfer system that moves money without physical currency crossing borders, often leaving no paper trail

Answer

A cryptocurrency exchange used by extremists

Answer

A sanctioned entity designation

Answer

A formal wire transfer system in the Middle East

Question 5

Which international body sets global standards for combating terrorist financing and publishes the relevant Recommendations?

Accepted Answer

FATF (Financial Action Task Force)

Answer

Interpol

Answer

UN Security Council

Answer

Basel Committee

Question 6

What does 'de-risking' mean in the context of sanctions and terrorist financing compliance?

Accepted Answer

Financial institutions terminating relationships with entire categories of customers to avoid regulatory risk

Answer

Hedging currency exposure in international trade

Answer

Removing names from the OFAC SDN list

Answer

Implementing enhanced due diligence measures