CAFCA Test Questions with Complete Verified
Correct detailed Solutions Graded A+ latest
update 2025
What is the purpose of transaction monitoring --- correct precise
| | | | | | | | |
| answers ---Manage financial crime risk
| | | |
Generate alerts |
| Investigate certain |
activity
|
What is an accurate statement concerning KYC photo identification
| | | | | | | |
solutions, as demonstrated by the N26 case? --- correct precise
| | | | | | | | | |
| answers ---KYC photo identification solutions are not comprehensive
| | | | | | |
if they cannot detect fake IDs.
| | | | | |
What is the main purpose of transaction monitoring controls? ---
| | | | | | | | |
| correct precise answers ---Manage financial risk
| | | | |
What is one difference between transaction monitoring and name
| | | | | | | |
screening? --- correct precise answers ---Name screening is
| | | | | | | |
performed prior to onboarding
| | | |
,United Nations sanctions are an example of what type of sanctions
| | | | | | | | | |
regime? --- correct precise answers ---Multilateral sanctions
| | | | | | |
What are the four research tips --- correct precise answers ---Assess
| | | | | | | | | |
what you need
| | |
Explore to find answers | | |
Organize to make meaningful
| | | |
Present to inform and defend
| | | | |
Customer due diligence (CDD) categories --- correct precise answers -
| | | | | | | | |
--CDD encompasses the entire lifecycle of due diligence
| | | | | | |
Customer identification (often CIP)
| | | |
Simplified due diligence (often SDD) | | | |
Standard due diligence for most customers
| | | | | |
Enhanced due diligence (often EDD)
| | | | |
How do you select standard customer research sources --- correct
| | | | | | | | |
| precise answers ---Attributes of reliable sources
| | | | |
Industry-recognized
Reputable and unbiased
| | |
Internal and external consistency
| | |
,Recent publication date | |
What is an unreliable source when doing CDD? --- correct precise
| | | | | | | | | |
| answers ---Unreliable sources| |
A registry that an organization pays to be listed in
| | | | | | | | |
Media in jurisdictions controlled by your subjects
| | | | | | |
Blogs or vlogs that express author's opinions
| | | | | | |
How do you document your research using an audit trail? --- correct
| | | | | | | | | | |
| precise answers ---Document steps taken as part of your risk-based
| | | | | | | | |
approach
|
Include how you resolved any inaccuracies or false matches
| | | | | | | |
Properly store the data for privacy and security purposes
| | | | | | | | |
As an AML investigator it is your job to: --- correct precise answers --
| | | | | | | | | | | | |
-Investigate and report facts | | |
An AML investigator must investigate all suspicious activity, and
| | | | | | | |
report the facts that support the activity. If something seems
| | | | | | | | | |
suspicious, it probably is. It is not up to the investigator to determine
| | | | | | | | | | | | |
guilt or innocence, but to gather and report the facts.
| | | | | | | | | |
, What is an accurate statement about customer due diligence? ---
| | | | | | | | |
| correct precise answers ---The country of residence and nationality of
| | | | | | | | |
your customer will be risk-rated
| | | | |
What is "tipping off"? --- correct precise answers ---Telling the
| | | | | | | | |
subject of a SAR, or anyone who does not need to know, that a SAR has
| | | | | | | | | | | | | | | |
been filed
| |
Why is it important to filter the information you have gathered
| | | | | | | | | |
through your research? --- correct precise answers ---To bring
| | | | | | | | |
together the most relevant and important pieces of information
| | | | | | | | |
Why is it important to document your research? --- correct precise
| | | | | | | | | |
| answers ---Because a search performed today might turn up different
| | | | | | | | |
results in several months' time, and so the process of your searches
| | | | | | | | | | | |
can be evaluated for soundness
| | | | |
What is Duty to report --- correct precise answers ---Organization
| | | | | | | | |
must report suspicious behavior
| | | |
Personal liability |
Clear policies ensure clear reporting
| | | |
Designated officer is responsible
| | | |
Correct detailed Solutions Graded A+ latest
update 2025
What is the purpose of transaction monitoring --- correct precise
| | | | | | | | |
| answers ---Manage financial crime risk
| | | |
Generate alerts |
| Investigate certain |
activity
|
What is an accurate statement concerning KYC photo identification
| | | | | | | |
solutions, as demonstrated by the N26 case? --- correct precise
| | | | | | | | | |
| answers ---KYC photo identification solutions are not comprehensive
| | | | | | |
if they cannot detect fake IDs.
| | | | | |
What is the main purpose of transaction monitoring controls? ---
| | | | | | | | |
| correct precise answers ---Manage financial risk
| | | | |
What is one difference between transaction monitoring and name
| | | | | | | |
screening? --- correct precise answers ---Name screening is
| | | | | | | |
performed prior to onboarding
| | | |
,United Nations sanctions are an example of what type of sanctions
| | | | | | | | | |
regime? --- correct precise answers ---Multilateral sanctions
| | | | | | |
What are the four research tips --- correct precise answers ---Assess
| | | | | | | | | |
what you need
| | |
Explore to find answers | | |
Organize to make meaningful
| | | |
Present to inform and defend
| | | | |
Customer due diligence (CDD) categories --- correct precise answers -
| | | | | | | | |
--CDD encompasses the entire lifecycle of due diligence
| | | | | | |
Customer identification (often CIP)
| | | |
Simplified due diligence (often SDD) | | | |
Standard due diligence for most customers
| | | | | |
Enhanced due diligence (often EDD)
| | | | |
How do you select standard customer research sources --- correct
| | | | | | | | |
| precise answers ---Attributes of reliable sources
| | | | |
Industry-recognized
Reputable and unbiased
| | |
Internal and external consistency
| | |
,Recent publication date | |
What is an unreliable source when doing CDD? --- correct precise
| | | | | | | | | |
| answers ---Unreliable sources| |
A registry that an organization pays to be listed in
| | | | | | | | |
Media in jurisdictions controlled by your subjects
| | | | | | |
Blogs or vlogs that express author's opinions
| | | | | | |
How do you document your research using an audit trail? --- correct
| | | | | | | | | | |
| precise answers ---Document steps taken as part of your risk-based
| | | | | | | | |
approach
|
Include how you resolved any inaccuracies or false matches
| | | | | | | |
Properly store the data for privacy and security purposes
| | | | | | | | |
As an AML investigator it is your job to: --- correct precise answers --
| | | | | | | | | | | | |
-Investigate and report facts | | |
An AML investigator must investigate all suspicious activity, and
| | | | | | | |
report the facts that support the activity. If something seems
| | | | | | | | | |
suspicious, it probably is. It is not up to the investigator to determine
| | | | | | | | | | | | |
guilt or innocence, but to gather and report the facts.
| | | | | | | | | |
, What is an accurate statement about customer due diligence? ---
| | | | | | | | |
| correct precise answers ---The country of residence and nationality of
| | | | | | | | |
your customer will be risk-rated
| | | | |
What is "tipping off"? --- correct precise answers ---Telling the
| | | | | | | | |
subject of a SAR, or anyone who does not need to know, that a SAR has
| | | | | | | | | | | | | | | |
been filed
| |
Why is it important to filter the information you have gathered
| | | | | | | | | |
through your research? --- correct precise answers ---To bring
| | | | | | | | |
together the most relevant and important pieces of information
| | | | | | | | |
Why is it important to document your research? --- correct precise
| | | | | | | | | |
| answers ---Because a search performed today might turn up different
| | | | | | | | |
results in several months' time, and so the process of your searches
| | | | | | | | | | | |
can be evaluated for soundness
| | | | |
What is Duty to report --- correct precise answers ---Organization
| | | | | | | | |
must report suspicious behavior
| | | |
Personal liability |
Clear policies ensure clear reporting
| | | |
Designated officer is responsible
| | | |
