CAFCA 2025/2026 Exam Comprehensive
Questions and Verified Answers |
Accurate Solutions | Get it 100%
Correct!! | Already Graded A+
What is financial crime? - 🧠 ANSWER ✔✔Illegal activities that are usually
economically motivated
Examples include money laundering, terrorist financing, and tax evasion.
What is the impact of financial crime? - 🧠 ANSWER ✔✔Certain countries
are more prone to financial crimes
Impact of crime has increased globally
Threatens financial systems and economies
Money Laundering - 🧠 ANSWER ✔✔Engaging in financial transactions to
conceal the identity, source, or destination of illegally gained funds.
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,"The process of making illegal funds appear legitimate"
Three stages of Money Laundering - 🧠 ANSWER ✔✔1. Placement
2. Layering
3. Integration
What is placement? - 🧠 ANSWER ✔✔Putting "dirty money" into the
financial system
What is Layering? - 🧠 ANSWER ✔✔Concealing the origin of the "dirty
money"
What is integration? - 🧠 ANSWER ✔✔Using the "dirty money" in the
legitimate economy
Terrorist Financing - 🧠 ANSWER ✔✔Terrorist financing (proceeds for
crime)
provides funds for terrorist activity.
Can be legal and/or illegal activity
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PRIVACY STATEMENT. ALL RIGHTS RESERVED
,Sanctions - 🧠 ANSWER ✔✔Foreign policy and security tool
Target individuals, organizations, jurisdictions, vessels
Main types: Financial, economic, trade
What are the features of fraud? - 🧠 ANSWER ✔✔An intentional act of
criminal deception in order to obtain an unjust advantage
Results in financial or personal gain
Can be committed by one or more individuals
What are the three reasons someone commits fraud? - 🧠 ANSWER
✔✔Referred to as the Fraud Triangle
Pressure
Opportunity
Rationalization
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
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PRIVACY STATEMENT. ALL RIGHTS RESERVED
, Tax avoidance vs tax evasion - 🧠 ANSWER ✔✔Tax avoidance uses legal
practices to reduce taxes owed
Tax evasion uses illegal practices to evade paying taxes owed
Tax evasion includes hiding taxable assets from the authorities
Panama Papers (Case example) - 🧠 ANSWER ✔✔A classic example of the
use of shell companies to conceal customer wealth
Millions of secret documents were leaked to the press
Over 200,000 shell companies set up by law firm in Panama
What is a negative impact of financial crime? - 🧠 ANSWER ✔✔Financial
crime jeopardizes the soundness of financial institutions
What is the primary purpose of money laundering? - 🧠 ANSWER ✔✔To
make criminally derived property or funds appear to be legitimate
What is a feature of terrorist financing - 🧠 ANSWER ✔✔The money is not
necessarily derived from illicit proceeds
What is a red flag of fraud? - 🧠 ANSWER ✔✔A sense of urgency and
pressure to act immediately is a common red flag of fraud.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
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PRIVACY STATEMENT. ALL RIGHTS RESERVED
Questions and Verified Answers |
Accurate Solutions | Get it 100%
Correct!! | Already Graded A+
What is financial crime? - 🧠 ANSWER ✔✔Illegal activities that are usually
economically motivated
Examples include money laundering, terrorist financing, and tax evasion.
What is the impact of financial crime? - 🧠 ANSWER ✔✔Certain countries
are more prone to financial crimes
Impact of crime has increased globally
Threatens financial systems and economies
Money Laundering - 🧠 ANSWER ✔✔Engaging in financial transactions to
conceal the identity, source, or destination of illegally gained funds.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
1
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,"The process of making illegal funds appear legitimate"
Three stages of Money Laundering - 🧠 ANSWER ✔✔1. Placement
2. Layering
3. Integration
What is placement? - 🧠 ANSWER ✔✔Putting "dirty money" into the
financial system
What is Layering? - 🧠 ANSWER ✔✔Concealing the origin of the "dirty
money"
What is integration? - 🧠 ANSWER ✔✔Using the "dirty money" in the
legitimate economy
Terrorist Financing - 🧠 ANSWER ✔✔Terrorist financing (proceeds for
crime)
provides funds for terrorist activity.
Can be legal and/or illegal activity
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
2
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,Sanctions - 🧠 ANSWER ✔✔Foreign policy and security tool
Target individuals, organizations, jurisdictions, vessels
Main types: Financial, economic, trade
What are the features of fraud? - 🧠 ANSWER ✔✔An intentional act of
criminal deception in order to obtain an unjust advantage
Results in financial or personal gain
Can be committed by one or more individuals
What are the three reasons someone commits fraud? - 🧠 ANSWER
✔✔Referred to as the Fraud Triangle
Pressure
Opportunity
Rationalization
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
3
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, Tax avoidance vs tax evasion - 🧠 ANSWER ✔✔Tax avoidance uses legal
practices to reduce taxes owed
Tax evasion uses illegal practices to evade paying taxes owed
Tax evasion includes hiding taxable assets from the authorities
Panama Papers (Case example) - 🧠 ANSWER ✔✔A classic example of the
use of shell companies to conceal customer wealth
Millions of secret documents were leaked to the press
Over 200,000 shell companies set up by law firm in Panama
What is a negative impact of financial crime? - 🧠 ANSWER ✔✔Financial
crime jeopardizes the soundness of financial institutions
What is the primary purpose of money laundering? - 🧠 ANSWER ✔✔To
make criminally derived property or funds appear to be legitimate
What is a feature of terrorist financing - 🧠 ANSWER ✔✔The money is not
necessarily derived from illicit proceeds
What is a red flag of fraud? - 🧠 ANSWER ✔✔A sense of urgency and
pressure to act immediately is a common red flag of fraud.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
4
PRIVACY STATEMENT. ALL RIGHTS RESERVED
