CAFCA EXAM CERTIFIED AML FINTECH COMPLIANCE ASSOCIATE
Certified AML Fintech Compliance Associate (CAFCA)
EXAM 2025 | ALL QUESTIONS AND CORRECT ANSWERS | GRADED
Study online at https://quizlet.com/_hctqco
A+ |
1. What is Financial Crime? Illegal activities that typically are economically motivated,
such as money laundering, terrorist financing, sanctions,
fraud, bribery, corruption, and tax evasion
2. Name the three basic stages of Placement, layering, and integration
money laundering.
3. State the key differences be- Terrorist financing uses funds to support terrorist activities,
tween money laundering and but the funds are not necessarily derived from illegal ac-
terrorist financing. tivities. Money laundering always involves the proceeds of
illegal activities, typically committed by the ultimate bene-
ficiaries of the funds.
4. What are the main types of sanc- Financial, economic, and trade. They generally target indi-
tions and who do they target? viduals, organizations, and countries.
5. List the three major reasons peo- The three major reasons are pressure, opportunity, and
ple commit fraud, and what this rationalization. This model is referred to as the "Fraud Tri-
model is called. angle".
6. Name two important pieces of The Foreign Corrupt Practices Act in the US and The UK
anti-bribery and corruption legis- Bribery Act 2010.
lation with extra-territorial reach.
7. State two differences between Tax avoidance uses legal practices to reduce taxes owed,
tax avoidance and tax evasion. whereas tax evasion uses illegal practices to evade paying
taxes owed.
8. Name an example of politically Examples of PEPs include heads of state or heads of gov-
exposed persons (PEPs). ernment, senior politicians, senior government, judicial
and military officials, senior executives of state-owned cor-
porations, and important political party officials, as well as
1/9
, Certified AML Fintech Compliance Associate (CAFCA)
Study online at https://quizlet.com/_hctqco
their families and close associates. Usually, PEP positions
are specified in each jurisdiction's AML regulation.
9. State an example of high-risk Examples include customers who sign up using false iden-
customers that Fin Techs might tities, customers who lie about the purpose of business
encounter. relationships, front companies, companies with complex
ownership structures, and customers linked to organized
crime groups.
10. Name some jurisdiction risks and Jurisdictions with higher risk include those with poor AML
red flags in the FinTech sector. regulations, high levels of corruption, inadequate frame-
works to prevent financing of terrorism, and economic
sanctions in place. Jurisdictions that are tax havens and
those known to host shell companies are also high risk.
11. Why are Fin Techs often consid- Because of the lack of face-to-face encounters and the
ered to be high-risk companies? speed with which a person can access financial products.
12. What are some Fin Tech risks and Non face-to-face customer interactions and onboarding,
red flags? cryptocurrencies and anonymity, faster payments, new
technologies and their potential vulnerabilities, unproven
business models, and undeveloped governance frame-
works.
13. What are the benefits to using Faster speed to market and overcoming regulatory com-
banking as a service provider? plexities.
14. What are card schemes? Membership-based networks that enable a payment
method, such as Visa, JCB and MasterCard.
15. What are the three lines of de- The first line of defense is the line of business. The second
fense in AML compliance? line of defense is the compliance and internal control func-
tions. The third line of defense is internal audit.
2/9
Certified AML Fintech Compliance Associate (CAFCA)
EXAM 2025 | ALL QUESTIONS AND CORRECT ANSWERS | GRADED
Study online at https://quizlet.com/_hctqco
A+ |
1. What is Financial Crime? Illegal activities that typically are economically motivated,
such as money laundering, terrorist financing, sanctions,
fraud, bribery, corruption, and tax evasion
2. Name the three basic stages of Placement, layering, and integration
money laundering.
3. State the key differences be- Terrorist financing uses funds to support terrorist activities,
tween money laundering and but the funds are not necessarily derived from illegal ac-
terrorist financing. tivities. Money laundering always involves the proceeds of
illegal activities, typically committed by the ultimate bene-
ficiaries of the funds.
4. What are the main types of sanc- Financial, economic, and trade. They generally target indi-
tions and who do they target? viduals, organizations, and countries.
5. List the three major reasons peo- The three major reasons are pressure, opportunity, and
ple commit fraud, and what this rationalization. This model is referred to as the "Fraud Tri-
model is called. angle".
6. Name two important pieces of The Foreign Corrupt Practices Act in the US and The UK
anti-bribery and corruption legis- Bribery Act 2010.
lation with extra-territorial reach.
7. State two differences between Tax avoidance uses legal practices to reduce taxes owed,
tax avoidance and tax evasion. whereas tax evasion uses illegal practices to evade paying
taxes owed.
8. Name an example of politically Examples of PEPs include heads of state or heads of gov-
exposed persons (PEPs). ernment, senior politicians, senior government, judicial
and military officials, senior executives of state-owned cor-
porations, and important political party officials, as well as
1/9
, Certified AML Fintech Compliance Associate (CAFCA)
Study online at https://quizlet.com/_hctqco
their families and close associates. Usually, PEP positions
are specified in each jurisdiction's AML regulation.
9. State an example of high-risk Examples include customers who sign up using false iden-
customers that Fin Techs might tities, customers who lie about the purpose of business
encounter. relationships, front companies, companies with complex
ownership structures, and customers linked to organized
crime groups.
10. Name some jurisdiction risks and Jurisdictions with higher risk include those with poor AML
red flags in the FinTech sector. regulations, high levels of corruption, inadequate frame-
works to prevent financing of terrorism, and economic
sanctions in place. Jurisdictions that are tax havens and
those known to host shell companies are also high risk.
11. Why are Fin Techs often consid- Because of the lack of face-to-face encounters and the
ered to be high-risk companies? speed with which a person can access financial products.
12. What are some Fin Tech risks and Non face-to-face customer interactions and onboarding,
red flags? cryptocurrencies and anonymity, faster payments, new
technologies and their potential vulnerabilities, unproven
business models, and undeveloped governance frame-
works.
13. What are the benefits to using Faster speed to market and overcoming regulatory com-
banking as a service provider? plexities.
14. What are card schemes? Membership-based networks that enable a payment
method, such as Visa, JCB and MasterCard.
15. What are the three lines of de- The first line of defense is the line of business. The second
fense in AML compliance? line of defense is the compliance and internal control func-
tions. The third line of defense is internal audit.
2/9
