CFI CBCA Final Exam - Complete Exam Questions with Verified
Correct Answers and Detailed Explanations – Latest Update
2026/2027 | Graded A+/Certified Financial Investigator (CFI) –
Certified Bank Card Analyst (CBCA)
Question 1
The primary purpose of financial investigation is to:
A. Increase company profits
B. Identify, analyze, and document financial misconduct or suspicious activity
C. Eliminate all financial risks
D. Replace accounting procedures
Correct Answer: B. Identify, analyze, and document financial misconduct
or suspicious activity
Explanation:
Financial investigations focus on detecting fraud, money laundering,
corruption, and other financial crimes by examining transactions, records, and
financial behavior.
Question 2
Which organization is primarily responsible for enforcing anti-money
laundering regulations in the United States?
A. OSHA
B. FINRA
C. FinCEN
D. IRS only
Correct Answer: C. FinCEN
Explanation:
The Financial Crimes Enforcement Network (FinCEN) collects and analyzes
1|Page
,financial intelligence to combat money laundering, terrorism financing, and
other financial crimes.
Question 3
The three traditional stages of money laundering are:
A. Investigation, prosecution, conviction
B. Placement, layering, integration
C. Deposit, withdrawal, transfer
D. Planning, execution, recovery
Correct Answer: B. Placement, layering, integration
Explanation:
Money laundering typically involves introducing illegal funds into the
financial system (placement), disguising their origin through transactions
(layering), and making them appear legitimate (integration).
Question 4
A suspicious transaction report is typically filed when:
A. A customer opens a new account
B. A transaction appears unusual or potentially linked to illegal activity
C. A customer deposits a paycheck
D. A loan is approved
Correct Answer: B. A transaction appears unusual or potentially linked
to illegal activity
Explanation:
Suspicious Activity Reports (SARs) are used by financial institutions to report
transactions involving possible criminal activity.
Question 5
2|Page
,The purpose of Know Your Customer (KYC) procedures is to:
A. Increase credit limits
B. Verify customer identity and understand customer risk
C. Eliminate customer accounts
D. Reduce employee training
Correct Answer: B. Verify customer identity and understand customer
risk
Explanation:
KYC helps institutions identify customers, assess risk, and prevent fraud,
money laundering, and identity theft.
Question 6
Which document is commonly used to verify a customer's identity?
A. Utility bill or government-issued identification
B. Social media profile only
C. Verbal statement only
D. Employee recommendation
Correct Answer: A. Utility bill or government-issued identification
Explanation:
Reliable identification documents help confirm customer identity during
account opening and investigations.
Question 7
Credit card fraud involving stolen card information is known as:
A. Asset fraud
B. Card-not-present fraud
C. Payroll fraud
D. Tax fraud
3|Page
, Correct Answer: B. Card-not-present fraud
Explanation:
Card-not-present fraud occurs when criminals use stolen card details without
physically possessing the card, commonly online or by phone.
Question 8
A fraudulent transaction investigation should begin with:
A. Destroying suspicious records
B. Collecting and preserving evidence
C. Contacting the suspect immediately
D. Closing all accounts
Correct Answer: B. Collecting and preserving evidence
Explanation:
Proper evidence collection maintains the integrity of the investigation and
supports possible legal action.
Question 9
The term "skimming" refers to:
A. Increasing credit limits
B. Stealing payment card information using unauthorized devices
C. Paying bills online
D. Closing inactive accounts
Correct Answer: B. Stealing payment card information using
unauthorized devices
Explanation:
Skimming devices capture card data from legitimate transactions, allowing
criminals to create counterfeit cards.
4|Page
Correct Answers and Detailed Explanations – Latest Update
2026/2027 | Graded A+/Certified Financial Investigator (CFI) –
Certified Bank Card Analyst (CBCA)
Question 1
The primary purpose of financial investigation is to:
A. Increase company profits
B. Identify, analyze, and document financial misconduct or suspicious activity
C. Eliminate all financial risks
D. Replace accounting procedures
Correct Answer: B. Identify, analyze, and document financial misconduct
or suspicious activity
Explanation:
Financial investigations focus on detecting fraud, money laundering,
corruption, and other financial crimes by examining transactions, records, and
financial behavior.
Question 2
Which organization is primarily responsible for enforcing anti-money
laundering regulations in the United States?
A. OSHA
B. FINRA
C. FinCEN
D. IRS only
Correct Answer: C. FinCEN
Explanation:
The Financial Crimes Enforcement Network (FinCEN) collects and analyzes
1|Page
,financial intelligence to combat money laundering, terrorism financing, and
other financial crimes.
Question 3
The three traditional stages of money laundering are:
A. Investigation, prosecution, conviction
B. Placement, layering, integration
C. Deposit, withdrawal, transfer
D. Planning, execution, recovery
Correct Answer: B. Placement, layering, integration
Explanation:
Money laundering typically involves introducing illegal funds into the
financial system (placement), disguising their origin through transactions
(layering), and making them appear legitimate (integration).
Question 4
A suspicious transaction report is typically filed when:
A. A customer opens a new account
B. A transaction appears unusual or potentially linked to illegal activity
C. A customer deposits a paycheck
D. A loan is approved
Correct Answer: B. A transaction appears unusual or potentially linked
to illegal activity
Explanation:
Suspicious Activity Reports (SARs) are used by financial institutions to report
transactions involving possible criminal activity.
Question 5
2|Page
,The purpose of Know Your Customer (KYC) procedures is to:
A. Increase credit limits
B. Verify customer identity and understand customer risk
C. Eliminate customer accounts
D. Reduce employee training
Correct Answer: B. Verify customer identity and understand customer
risk
Explanation:
KYC helps institutions identify customers, assess risk, and prevent fraud,
money laundering, and identity theft.
Question 6
Which document is commonly used to verify a customer's identity?
A. Utility bill or government-issued identification
B. Social media profile only
C. Verbal statement only
D. Employee recommendation
Correct Answer: A. Utility bill or government-issued identification
Explanation:
Reliable identification documents help confirm customer identity during
account opening and investigations.
Question 7
Credit card fraud involving stolen card information is known as:
A. Asset fraud
B. Card-not-present fraud
C. Payroll fraud
D. Tax fraud
3|Page
, Correct Answer: B. Card-not-present fraud
Explanation:
Card-not-present fraud occurs when criminals use stolen card details without
physically possessing the card, commonly online or by phone.
Question 8
A fraudulent transaction investigation should begin with:
A. Destroying suspicious records
B. Collecting and preserving evidence
C. Contacting the suspect immediately
D. Closing all accounts
Correct Answer: B. Collecting and preserving evidence
Explanation:
Proper evidence collection maintains the integrity of the investigation and
supports possible legal action.
Question 9
The term "skimming" refers to:
A. Increasing credit limits
B. Stealing payment card information using unauthorized devices
C. Paying bills online
D. Closing inactive accounts
Correct Answer: B. Stealing payment card information using
unauthorized devices
Explanation:
Skimming devices capture card data from legitimate transactions, allowing
criminals to create counterfeit cards.
4|Page
