Free CFCS Financial Crime Prevention & Detection Questions and Answers

Question 1

What is the primary goal of financial crime prevention?

Accepted Answer

Detect & prevent illegal activities

Answer

To increase company profits.

Answer

To reduce employee workload.

Answer

To promote financial services.

Question 2

Which of the following is a common type of financial crime?

Accepted Answer

Money laundering

Answer

Charity donation

Answer

Public speaking

Answer

Financial planning

Question 3

What is the role of KYC (Know Your Customer) in prevention?

Accepted Answer

Verify customer identity

Answer

Ignore customer details.

Answer

Promote sales.

Answer

Delay onboarding.

Question 4

How does transaction monitoring help detect financial crimes?

Accepted Answer

Spot unusual patterns

Answer

By approving all transactions.

Answer

Ignore suspicious activity.

Answer

Encourage large cash payments.

Question 5

What is the purpose of suspicious activity reports (SARs)?

Accepted Answer

To document suspicious activity

Answer

To promote services.

Answer

To decrease transparency.

Answer

To ignore potential crimes.

Question 6

Which regulatory body oversees financial crime compliance?

Accepted Answer

FinCEN

Answer

FDA

Answer

FTC

Answer

FCC

Question 7

How can employee training reduce financial crime risks?

Accepted Answer

Improve awareness

Answer

By ignoring red flags.

Answer

Reduce paperwork.

Answer

Promote risky behavior.

Question 8

What is fraud risk assessment?

Accepted Answer

Evaluating fraud risks

Answer

Ignoring risks.

Answer

Rewarding fraud.

Answer

Hiding fraud.

Question 9

Why is collaboration important in fighting financial crime?

Accepted Answer

Share information

Answer

Keeps information secret.

Answer

Isolates departments.

Answer

Slows down processes.