CERTIFIED SANCTIONS SPECIALIST (CSS)
QUESTION AND CORRECT ANSWERS
(VERIFIED ANSWERS) PLUS RATIONALES
2026 Q&A INSTANT DOWNLOAD PDF
1. The primary objective of international sanctions is to
A. Generate government revenue
B. Encourage foreign investment
C. Change behavior of targeted countries, entities, or individuals
D. Replace criminal law
Rationale: Sanctions are designed to influence or coerce changes in behavior
without the use of military force.
2. Which organization is the primary sanctions authority in the United States?
A. Federal Reserve
B. Office of Foreign Assets Control (OFAC)
C. SEC
D. Department of Commerce
Rationale: OFAC administers and enforces U.S. economic and trade sanctions.
3. UN sanctions are legally binding on
A. Private companies only
B. NGOs
C. UN member states
D. Individuals worldwide
Rationale: UN Security Council resolutions are binding on all UN member states.
, 4. Which sanctions type targets specific individuals or entities rather than
whole countries?
A. Comprehensive sanctions
B. Targeted (smart) sanctions
C. Trade embargoes
D. Sectoral sanctions
Rationale: Targeted sanctions focus on specific persons or entities to reduce
humanitarian impact.
5. The Specially Designated Nationals (SDN) List is maintained by
A. United Nations
B. European Union
C. OFAC
D. World Bank
Rationale: OFAC publishes and updates the SDN List.
6. What is the main compliance obligation for financial institutions regarding
sanctions?
A. Reporting profits
B. Screening customers and transactions
C. Paying penalties
D. Maintaining secrecy
Rationale: Institutions must screen customers, counterparties, and transactions
against sanctions lists.
7. Sectoral sanctions primarily restrict
A. All economic activity
B. Travel
C. Certain industries or sectors
D. Humanitarian aid
Rationale: Sectoral sanctions limit specific economic sectors like energy or
finance.
, 8. Which body imposes sanctions within the European Union?
A. European Parliament alone
B. Council of the European Union
C. European Central Bank
D. Europol
Rationale: The EU Council adopts sanctions decisions and regulations.
9. Asset freezing under sanctions means
A. Confiscation by the government
B. Blocking access and movement of assets
C. Automatic forfeiture
D. Destruction of assets
Rationale: Freezing prevents use or transfer but does not change ownership.
10.Which activity is generally prohibited under sanctions?
A. Compliance reporting
B. Internal audits
C. Providing funds to designated persons
D. Employee training
Rationale: Making funds or economic resources available to sanctioned parties
is prohibited.
11.Extraterritorial sanctions apply to
A. Only domestic entities
B. Foreign entities with U.S. nexus
C. UN agencies only
D. Individuals without nationality
Rationale: Some sanctions extend to foreign parties engaging with U.S. systems
or persons.
12.Which of the following is a sanctions screening false positive?
A. Confirmed SDN match
B. Name similarity without actual match
QUESTION AND CORRECT ANSWERS
(VERIFIED ANSWERS) PLUS RATIONALES
2026 Q&A INSTANT DOWNLOAD PDF
1. The primary objective of international sanctions is to
A. Generate government revenue
B. Encourage foreign investment
C. Change behavior of targeted countries, entities, or individuals
D. Replace criminal law
Rationale: Sanctions are designed to influence or coerce changes in behavior
without the use of military force.
2. Which organization is the primary sanctions authority in the United States?
A. Federal Reserve
B. Office of Foreign Assets Control (OFAC)
C. SEC
D. Department of Commerce
Rationale: OFAC administers and enforces U.S. economic and trade sanctions.
3. UN sanctions are legally binding on
A. Private companies only
B. NGOs
C. UN member states
D. Individuals worldwide
Rationale: UN Security Council resolutions are binding on all UN member states.
, 4. Which sanctions type targets specific individuals or entities rather than
whole countries?
A. Comprehensive sanctions
B. Targeted (smart) sanctions
C. Trade embargoes
D. Sectoral sanctions
Rationale: Targeted sanctions focus on specific persons or entities to reduce
humanitarian impact.
5. The Specially Designated Nationals (SDN) List is maintained by
A. United Nations
B. European Union
C. OFAC
D. World Bank
Rationale: OFAC publishes and updates the SDN List.
6. What is the main compliance obligation for financial institutions regarding
sanctions?
A. Reporting profits
B. Screening customers and transactions
C. Paying penalties
D. Maintaining secrecy
Rationale: Institutions must screen customers, counterparties, and transactions
against sanctions lists.
7. Sectoral sanctions primarily restrict
A. All economic activity
B. Travel
C. Certain industries or sectors
D. Humanitarian aid
Rationale: Sectoral sanctions limit specific economic sectors like energy or
finance.
, 8. Which body imposes sanctions within the European Union?
A. European Parliament alone
B. Council of the European Union
C. European Central Bank
D. Europol
Rationale: The EU Council adopts sanctions decisions and regulations.
9. Asset freezing under sanctions means
A. Confiscation by the government
B. Blocking access and movement of assets
C. Automatic forfeiture
D. Destruction of assets
Rationale: Freezing prevents use or transfer but does not change ownership.
10.Which activity is generally prohibited under sanctions?
A. Compliance reporting
B. Internal audits
C. Providing funds to designated persons
D. Employee training
Rationale: Making funds or economic resources available to sanctioned parties
is prohibited.
11.Extraterritorial sanctions apply to
A. Only domestic entities
B. Foreign entities with U.S. nexus
C. UN agencies only
D. Individuals without nationality
Rationale: Some sanctions extend to foreign parties engaging with U.S. systems
or persons.
12.Which of the following is a sanctions screening false positive?
A. Confirmed SDN match
B. Name similarity without actual match
