CAFCA Manual
Study online at https://quizlet.com/_9qtn58
1. What is financial Illegal activities that are usually economically motivated.
crime?
2. What is money The process of concealing or disguising the existence,
laundering? source, movement, destination, or illegal application of
criminally derived property or funds to make them appear
legitimate.
3. Three stages of - Placement
money launder- - Layering
ing - Integration
4. What is terrorist Involves fund for an illegal political purpose to support
financing? terrorist activities. However, money is necessarily derived
from the proceeds of illegal activity.
Hawala system plays a big roles in moving terrorist related
funds.
5. What are sanc- Political decision made as part of diplomatic efforts by
tions? countries, regional organization, and international bod-
ies. Sanctions are primarily a foreign policy and security
tool. Sanctions are intended to affect behavioral change
through deterrence, prevention, or punishment.
6. What is fraud? An International act of criminal deception in order to obtain
an unjust or illegal advantage. Usually for personal gain.
7. Reasons people - Pressure
commit fraud - Opportunity
- Rationalization
4th Capacity
8. What is Bribrery is the giving or receiving of a financial or other
anti-bribery and advantage in connection with the improper performance
corruption? of a position or trust, or a function that is expected to be
performed impartially, or in good faith.
9. Anti-bribery and - The Foreign Corrupt Practices Act US
Corruption Law? - The UK Bribery Act 2010
1/6
, CAFCA Manual
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10. What is tax avoid- The legal means to reduce the tax owed.
ance?
11. What is tax eva- The illegal means to avoid paying tax owed.
sion?
12. Regulation to The Foreign Account Tax Compliance Act (FATCA)
combat tax eva-
sion?
13. Types of finan- - Regulatory
cial crime risks? - Legal
- Financial
- Reputational
14. Anti Money Laun- - Bank Secrecy Act (BSA) US
dering Regula- - 5th AML Directive EU
tions? - The ML and TF Regulation 2019 UK
15. What does the Prohibits US companies and individuals from paying
Foreign Corrupt bribes to foreign officials to further a business deal.
Practices Act of
1977 do? (FCPA_
16. What is the An inter-governmental body that sets international stan-
Financial Ac- dards for preventing money laundering and terrorist fi-
tions Task Force nancing and the harm they cause to society.
FATF?
17. Categories of - Customer
risk? - Jurisdiction
- Product
- Channel
18. What is benefi- The person or persons having ultimate control over the
cial ownership? funds.
19. Owner vs Con- - Owner: individual who directly or indirectly owns 25% ore
trolling Person more
- Controlling person: non-owner or owner with less than
2/6
Study online at https://quizlet.com/_9qtn58
1. What is financial Illegal activities that are usually economically motivated.
crime?
2. What is money The process of concealing or disguising the existence,
laundering? source, movement, destination, or illegal application of
criminally derived property or funds to make them appear
legitimate.
3. Three stages of - Placement
money launder- - Layering
ing - Integration
4. What is terrorist Involves fund for an illegal political purpose to support
financing? terrorist activities. However, money is necessarily derived
from the proceeds of illegal activity.
Hawala system plays a big roles in moving terrorist related
funds.
5. What are sanc- Political decision made as part of diplomatic efforts by
tions? countries, regional organization, and international bod-
ies. Sanctions are primarily a foreign policy and security
tool. Sanctions are intended to affect behavioral change
through deterrence, prevention, or punishment.
6. What is fraud? An International act of criminal deception in order to obtain
an unjust or illegal advantage. Usually for personal gain.
7. Reasons people - Pressure
commit fraud - Opportunity
- Rationalization
4th Capacity
8. What is Bribrery is the giving or receiving of a financial or other
anti-bribery and advantage in connection with the improper performance
corruption? of a position or trust, or a function that is expected to be
performed impartially, or in good faith.
9. Anti-bribery and - The Foreign Corrupt Practices Act US
Corruption Law? - The UK Bribery Act 2010
1/6
, CAFCA Manual
Study online at https://quizlet.com/_9qtn58
10. What is tax avoid- The legal means to reduce the tax owed.
ance?
11. What is tax eva- The illegal means to avoid paying tax owed.
sion?
12. Regulation to The Foreign Account Tax Compliance Act (FATCA)
combat tax eva-
sion?
13. Types of finan- - Regulatory
cial crime risks? - Legal
- Financial
- Reputational
14. Anti Money Laun- - Bank Secrecy Act (BSA) US
dering Regula- - 5th AML Directive EU
tions? - The ML and TF Regulation 2019 UK
15. What does the Prohibits US companies and individuals from paying
Foreign Corrupt bribes to foreign officials to further a business deal.
Practices Act of
1977 do? (FCPA_
16. What is the An inter-governmental body that sets international stan-
Financial Ac- dards for preventing money laundering and terrorist fi-
tions Task Force nancing and the harm they cause to society.
FATF?
17. Categories of - Customer
risk? - Jurisdiction
- Product
- Channel
18. What is benefi- The person or persons having ultimate control over the
cial ownership? funds.
19. Owner vs Con- - Owner: individual who directly or indirectly owns 25% ore
trolling Person more
- Controlling person: non-owner or owner with less than
2/6
