Certified AML Fintech Compliance
Associate (CAFCA) 2025/2026 Exam
Questions and Correct Answers | New
Update
What is Financial Crime? - 🧠 ANSWER ✔✔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. - 🧠 ANSWER
✔✔Placement, layering, and integration
State the key differences between money laundering and terrorist
financing. - 🧠 ANSWER ✔✔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? - 🧠
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 pressure, opportunity,
and rationalization. This model is referred to as the "Fraud Triangle".
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.
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.
Name an example of politically exposed persons (PEPs). - 🧠 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.
Associate (CAFCA) 2025/2026 Exam
Questions and Correct Answers | New
Update
What is Financial Crime? - 🧠 ANSWER ✔✔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. - 🧠 ANSWER
✔✔Placement, layering, and integration
State the key differences between money laundering and terrorist
financing. - 🧠 ANSWER ✔✔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? - 🧠
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 pressure, opportunity,
and rationalization. This model is referred to as the "Fraud Triangle".
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.
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.
Name an example of politically exposed persons (PEPs). - 🧠 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.
