CAFCA Basic 2025/2026 Exam
Questions and Verified Answers |
Already Graded A+
Name two important pieces of anti-bribery and
corruption legislation with extra territorial reach. - 🧠 ANSWER ✔✔The
Foreign Corrupt Practices Act
in the US and The UK Bribery Act
2010.
What are the main types of sanctions and who
do they target? - 🧠 ANSWER ✔✔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. - 🧠 ANSWER ✔✔The three major
reasons are
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,pressure, opportunity, and
rationalization. This model is referred to as the
"Fraud Triangle.
State two differences between tax avoidance
and tax evasion. - 🧠 ANSWER ✔✔Tax avoidance uses legal practices
to reduce taxes owed, whereas tax
evasion uses illegal practices to evade paying
taxes owed.
State an example of high-risk customers that
Fin Techs might encounter. - 🧠 ANSWER ✔✔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.
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,Name an example of politically exposed persons - 🧠 ANSWER
✔✔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.
Name some jurisdiction risks and red flags in
the Fin Tech sector. - 🧠 ANSWER ✔✔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 ere tax havens and those known to host
shell companies are also high-risk.
Why are Fin Techs often considered to be
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
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, high-risk companies? - 🧠 ANSWER ✔✔Because of the lack of face-to-
face encounters and the speed
with which a person can access financial
products
What are some Fin Tech risks and red flags? - 🧠 ANSWER ✔✔Non-face-to-
face customer
interactions and onboarding, cryptocurrencies and anonymity, faster
payments, new technologies and their potential vulnerabilities, unproven
business models, and undeveloped governance frameworks.
What are the benefits to using banking as a
service provider? - 🧠 ANSWER ✔✔Faster speed to market and
overcoming regulatory
complexities.
What are card schemes? - 🧠 ANSWER ✔✔Membership-based networks
that
enable a payment method, such as
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 |
Already Graded A+
Name two important pieces of anti-bribery and
corruption legislation with extra territorial reach. - 🧠 ANSWER ✔✔The
Foreign Corrupt Practices Act
in the US and The UK Bribery Act
2010.
What are the main types of sanctions and who
do they target? - 🧠 ANSWER ✔✔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. - 🧠 ANSWER ✔✔The three major
reasons are
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
1
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,pressure, opportunity, and
rationalization. This model is referred to as the
"Fraud Triangle.
State two differences between tax avoidance
and tax evasion. - 🧠 ANSWER ✔✔Tax avoidance uses legal practices
to reduce taxes owed, whereas tax
evasion uses illegal practices to evade paying
taxes owed.
State an example of high-risk customers that
Fin Techs might encounter. - 🧠 ANSWER ✔✔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.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
2
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,Name an example of politically exposed persons - 🧠 ANSWER
✔✔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.
Name some jurisdiction risks and red flags in
the Fin Tech sector. - 🧠 ANSWER ✔✔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 ere tax havens and those known to host
shell companies are also high-risk.
Why are Fin Techs often considered to be
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
3
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, high-risk companies? - 🧠 ANSWER ✔✔Because of the lack of face-to-
face encounters and the speed
with which a person can access financial
products
What are some Fin Tech risks and red flags? - 🧠 ANSWER ✔✔Non-face-to-
face customer
interactions and onboarding, cryptocurrencies and anonymity, faster
payments, new technologies and their potential vulnerabilities, unproven
business models, and undeveloped governance frameworks.
What are the benefits to using banking as a
service provider? - 🧠 ANSWER ✔✔Faster speed to market and
overcoming regulatory
complexities.
What are card schemes? - 🧠 ANSWER ✔✔Membership-based networks
that
enable a payment method, such as
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
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PRIVACY STATEMENT. ALL RIGHTS RESERVED
