CERTIFIED AML FINTECH COMPLIANCE ASSOCIATE
[CAFCA] NEWEST 2025 EXAM WITH CORRECT
QUESTIONS AND ACTUAL ANSWERS GRADED A+
IIBRAND NEW.
What is Financial Crime? - ANSWERS-Illegal activities that
typically are economically motivated, such as money laundering,
terrorist financing, sanctions, fraud, bribery, corruption, and tax
evasion
Name the three basic stages of money laundering. - ANSWERS-
Placement, layering, and integration
State the key differences between money laundering and terrorist
financing. - ANSWERS-Terrorist financing uses funds to support
terrorist activities, but the funds are not necessarily derived from
illegal activities. Money laundering always involves the proceeds
of illegal activities, typically committed by the ultimate
beneficiaries of the funds.
What are the main types of sanctions and who do they target? -
ANSWERS-Financial, economic, and trade. They generally target
individuals, organizations, and countries.
List the three major reasons people commit fraud, and what this
model is called. - ANSWERS-The three major reasons are
pressure, opportunity, and rationalization. This model is referred
to as the "Fraud Triangle".
, State two differences between tax avoidance and tax evasion. -
ANSWERS-Tax avoidance uses legal practices to reduce taxes
owed, whereas tax evasion uses illegal practices to evade paying
taxes owed.
Name an example of politically exposed persons (PEPs). -
ANSWERS-Examples of PEPs include heads of state or heads of
government, senior politicians, senior government, judicial and
military officials, senior executives of state-owned corporations,
and important political party officials, as well as their families and
close associates. Usually, PEP positions are specified in each
jurisdiction's AML regulation.
State an example of high-risk customers that Fin Techs might
encounter. - ANSWERS-Examples include customers who sign up
using false identities, customers who lie about the purpose of
business relationships, front companies, companies with complex
ownership structures, and customers linked to organized crime
groups.
Name two important pieces of anti-bribery and corruption
legislation with extra-territorial reach. - ANSWERS-The Foreign
Corrupt Practices Act in the US and The UK Bribery Act 2010.
Name some jurisdiction risks and red flags in the FinTech sector. -
ANSWERS-Jurisdictions with higher risk include those with poor
AML regulations, high levels of corruption, inadequate
frameworks to prevent financing of terrorism, and economic
sanctions in place. Jurisdictions that are tax havens and those
known to host shell companies are also high risk.
Why are Fin Techs often considered to be high-risk companies? -
ANSWERS-Because of the lack of face-to-face encounters and
the speed with which a person can access financial products.
[CAFCA] NEWEST 2025 EXAM WITH CORRECT
QUESTIONS AND ACTUAL ANSWERS GRADED A+
IIBRAND NEW.
What is Financial Crime? - ANSWERS-Illegal activities that
typically are economically motivated, such as money laundering,
terrorist financing, sanctions, fraud, bribery, corruption, and tax
evasion
Name the three basic stages of money laundering. - ANSWERS-
Placement, layering, and integration
State the key differences between money laundering and terrorist
financing. - ANSWERS-Terrorist financing uses funds to support
terrorist activities, but the funds are not necessarily derived from
illegal activities. Money laundering always involves the proceeds
of illegal activities, typically committed by the ultimate
beneficiaries of the funds.
What are the main types of sanctions and who do they target? -
ANSWERS-Financial, economic, and trade. They generally target
individuals, organizations, and countries.
List the three major reasons people commit fraud, and what this
model is called. - ANSWERS-The three major reasons are
pressure, opportunity, and rationalization. This model is referred
to as the "Fraud Triangle".
, State two differences between tax avoidance and tax evasion. -
ANSWERS-Tax avoidance uses legal practices to reduce taxes
owed, whereas tax evasion uses illegal practices to evade paying
taxes owed.
Name an example of politically exposed persons (PEPs). -
ANSWERS-Examples of PEPs include heads of state or heads of
government, senior politicians, senior government, judicial and
military officials, senior executives of state-owned corporations,
and important political party officials, as well as their families and
close associates. Usually, PEP positions are specified in each
jurisdiction's AML regulation.
State an example of high-risk customers that Fin Techs might
encounter. - ANSWERS-Examples include customers who sign up
using false identities, customers who lie about the purpose of
business relationships, front companies, companies with complex
ownership structures, and customers linked to organized crime
groups.
Name two important pieces of anti-bribery and corruption
legislation with extra-territorial reach. - ANSWERS-The Foreign
Corrupt Practices Act in the US and The UK Bribery Act 2010.
Name some jurisdiction risks and red flags in the FinTech sector. -
ANSWERS-Jurisdictions with higher risk include those with poor
AML regulations, high levels of corruption, inadequate
frameworks to prevent financing of terrorism, and economic
sanctions in place. Jurisdictions that are tax havens and those
known to host shell companies are also high risk.
Why are Fin Techs often considered to be high-risk companies? -
ANSWERS-Because of the lack of face-to-face encounters and
the speed with which a person can access financial products.
