CFCS CFCS Terrorist Financing & Sanctions Compliance 1

Question 1

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

Accepted Answer

OFAC

Answer

The Office of Foreign Assets Control (OFAC), part of the US Treasury Department, administers and enforces economic and trade sanctions against targeted foreign countries, entities, and individuals.

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

Unlike money laundering, which involves disguising criminally derived funds, terrorist financing may involve legitimately sourced funds that are directed toward violent or extremist activity.

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

Financial institutions are required to file a SAR within 30 calendar days of detecting facts that may constitute terrorist financing or other suspicious activity.

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

Hawala is an informal value transfer network based on trust between brokers (hawaladars) who settle accounts without physically moving money across borders, creating minimal documentation.

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

The Financial Action Task Force (FATF) is the global standard-setting body whose 40 Recommendations form the international framework for combating money laundering and terrorist financing.

CFCS - Certified Financial Crime Specialist Practice Test

CFCS - Certified Financial Crime Specialist Practice Test

CFCS CFCS Terrorist Financing & Sanctions Compliance 1