CAFCA EXAM CERTIFIED AML FINTECH
COMPLIANCE ASSOCIATE EXAM 2026
UPDATE QUESTIONS AND CORRECT
VERIFIED ASWERS ALREADY GRADED A+
(BRAND NEW VISION)
Aside from the legal requirement, why is good recordkeeping important to
FinTechs? - ANS-It could help to defend your organization against a
money laundering or a terrorist financing offense. It also supports
law enforcement agencies to fight financial crime.
With whom can financial institutions share customer data? - ANS-Data
you hold about a customer should be shared only with others who
need to know. Many jurisdictions have privacy and data security
laws and regulations that apply to financial institutions.
What is the advantage of independently collecting customer information
in addition to customer-completed digital forms? - ANS-It can be more
reliable and less prone to fraud and manipulation.
Name some common red flags when onboarding customers. - ANS-
Customers who are overly evasive, provide documents that
appear to be false, are linked to high-risk or sanctioned
jurisdictions, are PEPs or affiliated with PEPs, and are subjects of
adverse media.
When does name screening typically take place? - ANS-Customers
typically are screened at onboarding and on an ongoing basis.
Some organizations continuously rescreen customers in real-time,
and others do hourly or daily batch screening.
With regard to list management controls, how does a FinTech determine
which lists to use? - ANS-The decision is based on geographic
, location, the currencies used, the business model, where
customers are based, and customer activities.
How does a Fintech determine the necessary level of verification and
research during customer onboarding? - ANS-The level is based on the
risk score given to a customer through the customer risk
assessment process and any local regulatory requirements.
Why is it crucial for CDD programs to evolve along with organizational
growth? - ANS-To accommodate new customer types, volumes, and
risks, and to prevent delays in the onboarding process.
What is the purpose of controls for transaction monitoring? - ANS-The
purpose of having controls for transaction monitoring is to
manage the financial crime risk to an organization, in a risk-based
approach, these controls are appropriate, specific, and risk-
based.
What factors do transaction monitoring scenarios analyze? - ANS-
Transaction monitoring scenarios analyze factors such as industry
size, jurisdiction, and customer activity when setting alerts.
What does it mean to "use contextual information" when clearing a
transaction monitoring alert? - ANS-To consider the nature of the rule
that flagged the transaction, as well as the wider customer profile
and transaction history.
Name red flags that could point to corporate money laundering through
shell companies. - ANS-Shell companies exist only on paper with no
active business operations. Red flags include: companies with no
public profile, no clear business, and a poorly populated or
nonexistent website.
Name red flags that arise during payment screening that might point to
sanctions violations. - ANS-Payments to a region that borders a
sanctioned jurisdiction, payments with references linked to
COMPLIANCE ASSOCIATE EXAM 2026
UPDATE QUESTIONS AND CORRECT
VERIFIED ASWERS ALREADY GRADED A+
(BRAND NEW VISION)
Aside from the legal requirement, why is good recordkeeping important to
FinTechs? - ANS-It could help to defend your organization against a
money laundering or a terrorist financing offense. It also supports
law enforcement agencies to fight financial crime.
With whom can financial institutions share customer data? - ANS-Data
you hold about a customer should be shared only with others who
need to know. Many jurisdictions have privacy and data security
laws and regulations that apply to financial institutions.
What is the advantage of independently collecting customer information
in addition to customer-completed digital forms? - ANS-It can be more
reliable and less prone to fraud and manipulation.
Name some common red flags when onboarding customers. - ANS-
Customers who are overly evasive, provide documents that
appear to be false, are linked to high-risk or sanctioned
jurisdictions, are PEPs or affiliated with PEPs, and are subjects of
adverse media.
When does name screening typically take place? - ANS-Customers
typically are screened at onboarding and on an ongoing basis.
Some organizations continuously rescreen customers in real-time,
and others do hourly or daily batch screening.
With regard to list management controls, how does a FinTech determine
which lists to use? - ANS-The decision is based on geographic
, location, the currencies used, the business model, where
customers are based, and customer activities.
How does a Fintech determine the necessary level of verification and
research during customer onboarding? - ANS-The level is based on the
risk score given to a customer through the customer risk
assessment process and any local regulatory requirements.
Why is it crucial for CDD programs to evolve along with organizational
growth? - ANS-To accommodate new customer types, volumes, and
risks, and to prevent delays in the onboarding process.
What is the purpose of controls for transaction monitoring? - ANS-The
purpose of having controls for transaction monitoring is to
manage the financial crime risk to an organization, in a risk-based
approach, these controls are appropriate, specific, and risk-
based.
What factors do transaction monitoring scenarios analyze? - ANS-
Transaction monitoring scenarios analyze factors such as industry
size, jurisdiction, and customer activity when setting alerts.
What does it mean to "use contextual information" when clearing a
transaction monitoring alert? - ANS-To consider the nature of the rule
that flagged the transaction, as well as the wider customer profile
and transaction history.
Name red flags that could point to corporate money laundering through
shell companies. - ANS-Shell companies exist only on paper with no
active business operations. Red flags include: companies with no
public profile, no clear business, and a poorly populated or
nonexistent website.
Name red flags that arise during payment screening that might point to
sanctions violations. - ANS-Payments to a region that borders a
sanctioned jurisdiction, payments with references linked to
