CFCI MOCK EXAM (100
QUESTIONS WITH CORRECT
DETAILED ANSWERS WELL
VERIFAIDS & EXPLANATIONS)
1. What best defines financial crime?
Correct detailed answers well verifaid: B. Crimes involving monetary gain
through illegal means
Explanation: Financial crime refers to illegal acts committed for financial benefit,
including fraud, laundering, and corruption.
2. Internal fraud is committed by:
Correct detailed answers well verifaid: B. Employees or
insiders
Explanation: Internal fraud originates from within an organization by staff,
contractors, or management.
3. External fraud is committed by:
Correct detailed answers well verifaid: C. Third parties
outside an organization
Explanation: External fraud involves customers, hackers, or external criminals.
4. Which is an example of asset misappropriation?
,Correct detailed answers well verifaid: B. Embezzlement of
cash
Explanation: Asset misappropriation involves theft or misuse of organizational
assets.
5. The primary goal of fraud is:
Correct detailed answers well verifaid: B. Financial gain
Explanation: Fraud is typically motivated by monetary benefit.
6. AML stands for:
Correct detailed answers well verifaid: B. Anti-Money
Laundering
Explanation: AML laws prevent criminals from disguising illegal funds.
7. The main purpose of AML laws is to:
Correct detailed answers well verifaid: B. Prevent criminals
from disguising illicit funds
Explanation: AML frameworks detect and prevent laundering of illegal money.
8. KYC means:
Correct detailed answers well verifaid: A. Know Your
Customer
Explanation: KYC requires institutions to verify customer identity.
9. Suspicious Activity Reports (SARs) are filed when:
Correct detailed answers well verifaid: B. Fraud or
suspicious behavior is detected
Explanation: SARs alert regulators about potentially illegal financial activity.
, Answer
Explanation:
10. Structuring transactions is also known as:
Correct detailed answers well verifaid: B. Smurfing
Explanation: Breaking large transactions into smaller ones to avoid detection.
11. The first step in an investigation is:
: C. Complaint intake and assessment
Investigations begin by evaluating the allegation.
12. Chain of custody refers to:
Correct detailed answers well verifaid: B. Documentation
of evidence handling
Explanation: Tracks who handled evidence and when.
13. Evidence must be:
Correct detailed answers well verifaid: B. Relevant,
reliable, and admissible
Explanation: Courts require valid and legally acceptable evidence.
14. Direct evidence includes:
Correct detailed answers well verifaid: A. Witness
testimony
Explanation: Direct evidence proves a fact without inference.
15. Circumstantial evidence:
Correct detailed answers well verifaid: B. Requires
inference
Explanation: It suggests a fact indirectly.
Answer
Explanation:
QUESTIONS WITH CORRECT
DETAILED ANSWERS WELL
VERIFAIDS & EXPLANATIONS)
1. What best defines financial crime?
Correct detailed answers well verifaid: B. Crimes involving monetary gain
through illegal means
Explanation: Financial crime refers to illegal acts committed for financial benefit,
including fraud, laundering, and corruption.
2. Internal fraud is committed by:
Correct detailed answers well verifaid: B. Employees or
insiders
Explanation: Internal fraud originates from within an organization by staff,
contractors, or management.
3. External fraud is committed by:
Correct detailed answers well verifaid: C. Third parties
outside an organization
Explanation: External fraud involves customers, hackers, or external criminals.
4. Which is an example of asset misappropriation?
,Correct detailed answers well verifaid: B. Embezzlement of
cash
Explanation: Asset misappropriation involves theft or misuse of organizational
assets.
5. The primary goal of fraud is:
Correct detailed answers well verifaid: B. Financial gain
Explanation: Fraud is typically motivated by monetary benefit.
6. AML stands for:
Correct detailed answers well verifaid: B. Anti-Money
Laundering
Explanation: AML laws prevent criminals from disguising illegal funds.
7. The main purpose of AML laws is to:
Correct detailed answers well verifaid: B. Prevent criminals
from disguising illicit funds
Explanation: AML frameworks detect and prevent laundering of illegal money.
8. KYC means:
Correct detailed answers well verifaid: A. Know Your
Customer
Explanation: KYC requires institutions to verify customer identity.
9. Suspicious Activity Reports (SARs) are filed when:
Correct detailed answers well verifaid: B. Fraud or
suspicious behavior is detected
Explanation: SARs alert regulators about potentially illegal financial activity.
, Answer
Explanation:
10. Structuring transactions is also known as:
Correct detailed answers well verifaid: B. Smurfing
Explanation: Breaking large transactions into smaller ones to avoid detection.
11. The first step in an investigation is:
: C. Complaint intake and assessment
Investigations begin by evaluating the allegation.
12. Chain of custody refers to:
Correct detailed answers well verifaid: B. Documentation
of evidence handling
Explanation: Tracks who handled evidence and when.
13. Evidence must be:
Correct detailed answers well verifaid: B. Relevant,
reliable, and admissible
Explanation: Courts require valid and legally acceptable evidence.
14. Direct evidence includes:
Correct detailed answers well verifaid: A. Witness
testimony
Explanation: Direct evidence proves a fact without inference.
15. Circumstantial evidence:
Correct detailed answers well verifaid: B. Requires
inference
Explanation: It suggests a fact indirectly.
Answer
Explanation:
