CFCS Asset Tracing & Recovery 2

Question 1

A 'letter rogatory' is used in international asset recovery to:

Accepted Answer

Formally request judicial assistance from a foreign court

Answer

A letter rogatory is a formal request from one country's court to a foreign court asking for judicial cooperation, such as obtaining evidence or freezing assets.

Question 2

Mutual Legal Assistance Treaties (MLATs) are critical in asset recovery because they:

Accepted Answer

Create a binding framework for countries to cooperate in criminal investigations and evidence sharing

Answer

MLATs provide a binding legal framework through which countries can request and render assistance in collecting evidence and recovering assets across borders.

Question 3

'Dissipation of assets' in the context of financial crime refers to:

Accepted Answer

The deliberate disposal or transfer of assets to place them beyond a creditor's or court's reach

Answer

Dissipation occurs when a defendant intentionally moves, hides, or destroys assets to prevent a court from awarding them to a claimant or victim.

Question 4

What distinguishes criminal forfeiture from civil asset forfeiture?

Accepted Answer

Criminal forfeiture requires a conviction of the property owner, while civil forfeiture proceeds against the property itself

Answer

Criminal forfeiture is an in personam action that follows a conviction of the defendant, whereas civil forfeiture is an in rem action against the property itself and does not require a conviction.

Question 5

A 'Norwich Pharmacal order' is typically sought in asset tracing to:

Accepted Answer

Compel a third party (such as a bank) to disclose information about a wrongdoer

Answer

A Norwich Pharmacal order compels an innocent third party who has become involved in wrongdoing (e.g., a bank holding a fraudster's account) to disclose information necessary to identify or trace the wrongdoer.

CFCS - Certified Financial Crime Specialist Practice Test

CFCS - Certified Financial Crime Specialist Practice Test

CFCS Asset Tracing & Recovery 2