ACAMS SANCTIONS EXAM WITH ALL CORRECT & 100%
VERIFIED ANSWERS|ACTUAL COMPLETE EXAM|
UPDATED TO PASS
OFAC sanctions compliance program ✔Correct Answer-1. Management commitment
2. Risk assessment
3. Internal controls
4. Testing and auditing
5. Training
Evasion methods: internal staff ✔Correct Answer-1. Stripping
2. Separating messages
3. "White lists"
Trade-related evasion methods ✔Correct Answer-1. Concealing identity
2. Concealing the final destination of goods
3. Transshipment
4. Switching cargo on open sea
5. Falsifying documents
6. Front/shell companies
7. Shell/aged companies
"Wolfsberg Guidance on Sanctions screening" ✔Correct Answer-Institution should consider these
from a risk standpoint:
1. The sophistication and configurability of the matching software
2. Availability of screening rules to optimize alert creation/suppression
3. Support for the screening or transformation of data in non-Latin characters
4. Ad hoc, one-off or manual screening functionality
5. Workflow configurability
6. Availability of metrics reporting
Lists most commonly used for screening ✔Correct Answer-UN Security Council Consolidated
Sanctions List
EU Consolidated Financial Sanctions List
OFAC: SDNs and Blocked Persons List
Other lists in screenings ✔Correct Answer-BIS List of Denied Persons
FATF list of High-Risk and Other Monitored Jurisdictions
UK Her Majesty's (HM) Treasury Consolidated List of Financial Sanctions Targets
Host country's list, other countries' lists, when appropriate
Alert ✔Correct Answer-A review based on underlying red flags that requires analyst attention.
Within know-
your-customer procedures, alerts are potential discrepancies that are flagged, either
manually or through an automated system, based on defined red flags and underlying
typologies. Within sanctions screening, an alert is a hit, or multiple hits, of an internal
record checked against sanctions screening lists. If they cannot be resolved easily as
false positives, alerts generally result in investigations.
, Asset confiscation ✔Correct Answer-The practice of taking ownership of an individual or legal
entity's assets during or as
the result of an investigation into a sanctions violation.
Asset flight ✔Correct Answer-The illegal practice of moving assets from one jurisdiction to another
for the purpose of avoiding fines, confiscation, or other penalties.
Asset forfeiture ✔Correct Answer-Similar to asset seizure, asset forfeiture is an important tool to
help law enforcement
agencies defund organized crime and prevent the commission of new crimes. In civil
asset forfeiture, assets unrelated to the commission of a crime can be taken from the
individual accused of committing a crime.
Asset mingling ✔Correct Answer-The illegal practice of purchasing assets, such as real estate
properties, using a blend
of legal and illegal funds as a means of making matches more complicated.
Automated Screening Tools (AST) ✔Correct Answer-Software systems used by large financial
institutions to facilitate the screening
process, as opposed to manual screening. In general, ASTs are designed to screen
against sanctions lists. ASTs generate hits against sanctions lists that may be
consolidated into alerts based on, for example, a customer record. For one customer
record there may be multiple hits against sanctions lists that are consolidated under
one alert.
Back-to-back letters of credit ✔Correct Answer-A form of financing in which Bank A issues a letter
of credit as collateral to Bank B in order to issue a separate letter of credit to the beneficiary. This
often happens when the underlying agreement between the applicant and beneficiary contains
restrictions about the credit quality of the bank that is issuing the letter of credit, the location of the
issuing bank, or other stipulations that prevent the applicant's bank from issuing a
direct letter of credit to the beneficiary. A sanctions evader can use a back-to-back letter of credit to
remove the name of a sanctioned bank from the documentation.
An organization can avoid taking part in this type of sanctions violation by watching out for these red
flags: instructions to amend the terms, alter the destination of goods, change the
name of a vessel, remove a bank or applicant name, or change a bank or applicant name. Any of
these directions requires further investigation.
Batch screening ✔Correct Answer-The process of screening a firm's entire customer base and
other associated entities, such as vendors, with ASTs on a periodic basis.
Beneficial owner ✔Correct Answer-The term "beneficial owner" has two different definitions
depending on the context:
• The natural person who ultimately owns or controls an account through which a
transaction is being conducted
• The natural people who have significant ownership of, as well as those who exercise
ultimate effective control over, a legal person or arrangement
Bill of exchange ✔Correct Answer-A shipping document that shows the means by which exporters
are paid for the goods
VERIFIED ANSWERS|ACTUAL COMPLETE EXAM|
UPDATED TO PASS
OFAC sanctions compliance program ✔Correct Answer-1. Management commitment
2. Risk assessment
3. Internal controls
4. Testing and auditing
5. Training
Evasion methods: internal staff ✔Correct Answer-1. Stripping
2. Separating messages
3. "White lists"
Trade-related evasion methods ✔Correct Answer-1. Concealing identity
2. Concealing the final destination of goods
3. Transshipment
4. Switching cargo on open sea
5. Falsifying documents
6. Front/shell companies
7. Shell/aged companies
"Wolfsberg Guidance on Sanctions screening" ✔Correct Answer-Institution should consider these
from a risk standpoint:
1. The sophistication and configurability of the matching software
2. Availability of screening rules to optimize alert creation/suppression
3. Support for the screening or transformation of data in non-Latin characters
4. Ad hoc, one-off or manual screening functionality
5. Workflow configurability
6. Availability of metrics reporting
Lists most commonly used for screening ✔Correct Answer-UN Security Council Consolidated
Sanctions List
EU Consolidated Financial Sanctions List
OFAC: SDNs and Blocked Persons List
Other lists in screenings ✔Correct Answer-BIS List of Denied Persons
FATF list of High-Risk and Other Monitored Jurisdictions
UK Her Majesty's (HM) Treasury Consolidated List of Financial Sanctions Targets
Host country's list, other countries' lists, when appropriate
Alert ✔Correct Answer-A review based on underlying red flags that requires analyst attention.
Within know-
your-customer procedures, alerts are potential discrepancies that are flagged, either
manually or through an automated system, based on defined red flags and underlying
typologies. Within sanctions screening, an alert is a hit, or multiple hits, of an internal
record checked against sanctions screening lists. If they cannot be resolved easily as
false positives, alerts generally result in investigations.
, Asset confiscation ✔Correct Answer-The practice of taking ownership of an individual or legal
entity's assets during or as
the result of an investigation into a sanctions violation.
Asset flight ✔Correct Answer-The illegal practice of moving assets from one jurisdiction to another
for the purpose of avoiding fines, confiscation, or other penalties.
Asset forfeiture ✔Correct Answer-Similar to asset seizure, asset forfeiture is an important tool to
help law enforcement
agencies defund organized crime and prevent the commission of new crimes. In civil
asset forfeiture, assets unrelated to the commission of a crime can be taken from the
individual accused of committing a crime.
Asset mingling ✔Correct Answer-The illegal practice of purchasing assets, such as real estate
properties, using a blend
of legal and illegal funds as a means of making matches more complicated.
Automated Screening Tools (AST) ✔Correct Answer-Software systems used by large financial
institutions to facilitate the screening
process, as opposed to manual screening. In general, ASTs are designed to screen
against sanctions lists. ASTs generate hits against sanctions lists that may be
consolidated into alerts based on, for example, a customer record. For one customer
record there may be multiple hits against sanctions lists that are consolidated under
one alert.
Back-to-back letters of credit ✔Correct Answer-A form of financing in which Bank A issues a letter
of credit as collateral to Bank B in order to issue a separate letter of credit to the beneficiary. This
often happens when the underlying agreement between the applicant and beneficiary contains
restrictions about the credit quality of the bank that is issuing the letter of credit, the location of the
issuing bank, or other stipulations that prevent the applicant's bank from issuing a
direct letter of credit to the beneficiary. A sanctions evader can use a back-to-back letter of credit to
remove the name of a sanctioned bank from the documentation.
An organization can avoid taking part in this type of sanctions violation by watching out for these red
flags: instructions to amend the terms, alter the destination of goods, change the
name of a vessel, remove a bank or applicant name, or change a bank or applicant name. Any of
these directions requires further investigation.
Batch screening ✔Correct Answer-The process of screening a firm's entire customer base and
other associated entities, such as vendors, with ASTs on a periodic basis.
Beneficial owner ✔Correct Answer-The term "beneficial owner" has two different definitions
depending on the context:
• The natural person who ultimately owns or controls an account through which a
transaction is being conducted
• The natural people who have significant ownership of, as well as those who exercise
ultimate effective control over, a legal person or arrangement
Bill of exchange ✔Correct Answer-A shipping document that shows the means by which exporters
are paid for the goods
