RCMS Sanctions & Trade Compliance 2

Question 1

Under OFAC regulations, which term describes a transaction that a U.S. person must reject and report to OFAC within 10 business days?

Accepted Answer

Rejected transaction

Answer

Rejected transactions involve parties or destinations not on the SDN list but still prohibited (e.g., embargoed countries); these must be reported to OFAC within 10 business days.

Question 2

Which U.S. government agency administers export controls under the Export Administration Regulations (EAR)?

Accepted Answer

Department of Commerce (BIS)

Answer

The Bureau of Industry and Security (BIS), part of the Department of Commerce, administers the EAR, which controls dual-use items.

Question 3

A company discovers its software falls under ECCN 5D002. Under EAR, which license exception most commonly allows mass-market encryption exports?

Accepted Answer

License Exception ENC

Answer

License Exception ENC (Encryption) allows export of certain encryption items, including mass-market products, subject to reporting requirements.

Question 4

When performing a sanctions screening, a match triggers on a name that is phonetically similar but not identical to an SDN entry. What is this scenario called?

Accepted Answer

False positive

Answer

A false positive occurs when a screening system flags a name that is not actually the sanctioned party, requiring manual review to clear.

Question 5

Which of the following best describes a 'debarred' party on the State Department's AECA Debarred List?

Accepted Answer

A person prohibited from participating in defense articles exports under ITAR

Answer

The AECA Debarred List identifies parties prohibited from receiving defense articles or defense services controlled under ITAR due to AECA violations.

(RCMS) Registered Compliance Management Specialist Certification Practice Test

(RCMS) Registered Compliance Management Specialist Certification Practice Test

RCMS Sanctions & Trade Compliance 2