CFT FINAL 2026 EXAM SCRIPT TEST PAPER
QUESTIONS AND SOLUTIONS GRADED A+
◉ How does FATF achieve their objectives?
Answer: 1. spreading AML message globally
2. Monitoring members implementation of R40
3. Reviews AML/TF trends/countermeasure
◉ What two assessments are part of FATFs mutual evaluation
process?
Answer: Technical & Effectiveness Assessment
◉ What does FATFs technical assessment assess?
Answer: Evaluate the specific requirements of FATF 40 and how
member relates them into legal & institutional framework.
◉ What does FATFs effectiveness assessment assess?
Answer: The adequacy of members implementation of the R40 to
see if they are achieving the expected outcomes
◉ What are the five possible ratings of FATFs technical assessment?
,Answer: Compliant, largely compliant, partially compliant,
noncompliant& not applicable
◉ What are the four possible ratings of FATFs effectiveness
assessment?
Answer: High, substantial, moderate and low level of effectiveness
◉ What are the 11 immediate outcomes of the FATF effectiveness
assessment?
Answer: 1. ML/TF risks known and mitigated
2. Int'l cooperation against criminals
3. FIs & NBFIs regulated & supervised
4. FIs & NBFIs preventative measures & report suspicious activity
5. Legal persons not misused & bene info avail to LE
6. Financial intelligence avail to LE in ML/TF investigations
7. ML investigated & prosecuted w/ sanctions
8. Proceeds crime confiscated
9. TF investigated & prosecuted w/ sanctions
10. Terrorists can't raise, move or use illicit money & can't abuse
NPOs
11. Ind. invoked proliferation can't raise, move or use money
,◉ What are the 3 Intermediate Outcomes that the 11 immediate
outcomes feed into in the Effectiveness assessment?
Answer: 1. Policy & coordination to mitigate ML/TF
2. Prevent illicit proceeds enter financial system & report when do
3. Detection & disruption ML/TF threats
◉ How often should follow up assessments be conducted according
to FATF?
Answer: After 5 years
◉ What two organizations published the report "ML & TF thru Trade
in Diamonds" in Oct 2013?
Answer: FATF & Egmont
◉ What is the length of mandates FATF works under?
Answer: 5 years
◉ What are the three main activities if FATF?
Answer: 1. Standard setting
2. Ensuring effective compliance w/ standards
3. ID ML & TF threats
, ◉ What year was the R40 first issued?
Answer: 1990
◉ When & why dud FATF issue IX Special Recommendations on TF?
Answer: Post 9/11 and because of the terrorist attacks
◉ What is the purpose of FATFs interpretive notes?
Answer: They are designed to carefully the application of specific
recommendations & provide additional guidance
◉ What had become the world's blueprint for effective national and
international AML/CFT standards?
Answer: FATF 40
◉ What other two organizations use a common methodology to
FATF to assess compliance with the FATF recommendations?
Answer: IMF & World Bank
◉ What are the six complete set of countermeasures against ML &
TF per FATF Reco's?
Answer: -ID risk
-Develop appropriate policies
-CJ & LE
QUESTIONS AND SOLUTIONS GRADED A+
◉ How does FATF achieve their objectives?
Answer: 1. spreading AML message globally
2. Monitoring members implementation of R40
3. Reviews AML/TF trends/countermeasure
◉ What two assessments are part of FATFs mutual evaluation
process?
Answer: Technical & Effectiveness Assessment
◉ What does FATFs technical assessment assess?
Answer: Evaluate the specific requirements of FATF 40 and how
member relates them into legal & institutional framework.
◉ What does FATFs effectiveness assessment assess?
Answer: The adequacy of members implementation of the R40 to
see if they are achieving the expected outcomes
◉ What are the five possible ratings of FATFs technical assessment?
,Answer: Compliant, largely compliant, partially compliant,
noncompliant& not applicable
◉ What are the four possible ratings of FATFs effectiveness
assessment?
Answer: High, substantial, moderate and low level of effectiveness
◉ What are the 11 immediate outcomes of the FATF effectiveness
assessment?
Answer: 1. ML/TF risks known and mitigated
2. Int'l cooperation against criminals
3. FIs & NBFIs regulated & supervised
4. FIs & NBFIs preventative measures & report suspicious activity
5. Legal persons not misused & bene info avail to LE
6. Financial intelligence avail to LE in ML/TF investigations
7. ML investigated & prosecuted w/ sanctions
8. Proceeds crime confiscated
9. TF investigated & prosecuted w/ sanctions
10. Terrorists can't raise, move or use illicit money & can't abuse
NPOs
11. Ind. invoked proliferation can't raise, move or use money
,◉ What are the 3 Intermediate Outcomes that the 11 immediate
outcomes feed into in the Effectiveness assessment?
Answer: 1. Policy & coordination to mitigate ML/TF
2. Prevent illicit proceeds enter financial system & report when do
3. Detection & disruption ML/TF threats
◉ How often should follow up assessments be conducted according
to FATF?
Answer: After 5 years
◉ What two organizations published the report "ML & TF thru Trade
in Diamonds" in Oct 2013?
Answer: FATF & Egmont
◉ What is the length of mandates FATF works under?
Answer: 5 years
◉ What are the three main activities if FATF?
Answer: 1. Standard setting
2. Ensuring effective compliance w/ standards
3. ID ML & TF threats
, ◉ What year was the R40 first issued?
Answer: 1990
◉ When & why dud FATF issue IX Special Recommendations on TF?
Answer: Post 9/11 and because of the terrorist attacks
◉ What is the purpose of FATFs interpretive notes?
Answer: They are designed to carefully the application of specific
recommendations & provide additional guidance
◉ What had become the world's blueprint for effective national and
international AML/CFT standards?
Answer: FATF 40
◉ What other two organizations use a common methodology to
FATF to assess compliance with the FATF recommendations?
Answer: IMF & World Bank
◉ What are the six complete set of countermeasures against ML &
TF per FATF Reco's?
Answer: -ID risk
-Develop appropriate policies
-CJ & LE
