CAFCA Manual Exam Questions With
Correct Answers
What |is |financial |crime? |- |CORRECT |ANSWER✔✔-Illegal |activities |that |are |usually |economically
|motivated.
What |is |money |laundering? |- |CORRECT |ANSWER✔✔-The |process |of |concealing |or |disguising |
the |existence, |source, |movement, |destination, |or |illegal |application |of |criminally |derived |
property |or |funds |to |make |them |appear |legitimate.
Three |stages |of |money |laundering |- |CORRECT |ANSWER✔✔-- |Placement
- |Layering |
- |Integration
What |is |terrorist |financing? |- |CORRECT |ANSWER✔✔-Involves |fund |for |an |illegal |political |
purpose |to |support |terrorist |activities. |However, |money |is |necessarily |derived |from |the |
proceeds |of |illegal |activity. |
Hawala |system |plays |a |big |roles |in |moving |terrorist |related |funds.
What |are |sanctions? |- |CORRECT |ANSWER✔✔-Political |decision |made |as |part |of |diplomatic |
efforts |by |countries, |regional |organization, |and |international |bodies. |Sanctions |are |primarily |a |
foreign |policy |and |security |tool. |Sanctions |are |intended |to |affect |behavioral |change |through |
deterrence, |prevention, |or |punishment.
What |is |fraud? |- |CORRECT |ANSWER✔✔-An |International |act |of |criminal |deception |in |order |to |
obtain |an |unjust |or |illegal |advantage. |Usually |for |personal |gain.
Reasons |people |commit |fraud |- |CORRECT |ANSWER✔✔-- |Pressure |
- |Opportunity |
, - |Rationalization
4th |Capacity
What |is |anti-bribery |and |corruption? |- |CORRECT |ANSWER✔✔-Bribrery |is |the |giving |or |
receiving |of |a |financial |or |other |advantage |in |connection |with |the |improper |performance |of |a |
position |or |trust, |or |a |function |that |is |expected |to |be |performed |impartially, |or |in |good |faith.
Anti-bribery |and |Corruption |Law? |- |CORRECT |ANSWER✔✔-- |The |Foreign |Corrupt |Practices |Act |
US
- |The |UK |Bribery |Act |2010
What |is |tax |avoidance? |- |CORRECT |ANSWER✔✔-The |legal |means |to |reduce |the |tax |owed.
What |is |tax |evasion? |- |CORRECT |ANSWER✔✔-The |illegal |means |to |avoid |paying |tax |owed.
Regulation |to |combat |tax |evasion? |- |CORRECT |ANSWER✔✔-The |Foreign |Account |Tax |
Compliance |Act |(FATCA)
Types |of |financial |crime |risks? |- |CORRECT |ANSWER✔✔-- |Regulatory
- |Legal |
- |Financial
- |Reputational
Anti |Money |Laundering |Regulations? |- |CORRECT |ANSWER✔✔-- |Bank |Secrecy |Act |(BSA) |US |
- |5th |AML |Directive |EU
- |The |ML |and |TF |Regulation |2019 |UK
Correct Answers
What |is |financial |crime? |- |CORRECT |ANSWER✔✔-Illegal |activities |that |are |usually |economically
|motivated.
What |is |money |laundering? |- |CORRECT |ANSWER✔✔-The |process |of |concealing |or |disguising |
the |existence, |source, |movement, |destination, |or |illegal |application |of |criminally |derived |
property |or |funds |to |make |them |appear |legitimate.
Three |stages |of |money |laundering |- |CORRECT |ANSWER✔✔-- |Placement
- |Layering |
- |Integration
What |is |terrorist |financing? |- |CORRECT |ANSWER✔✔-Involves |fund |for |an |illegal |political |
purpose |to |support |terrorist |activities. |However, |money |is |necessarily |derived |from |the |
proceeds |of |illegal |activity. |
Hawala |system |plays |a |big |roles |in |moving |terrorist |related |funds.
What |are |sanctions? |- |CORRECT |ANSWER✔✔-Political |decision |made |as |part |of |diplomatic |
efforts |by |countries, |regional |organization, |and |international |bodies. |Sanctions |are |primarily |a |
foreign |policy |and |security |tool. |Sanctions |are |intended |to |affect |behavioral |change |through |
deterrence, |prevention, |or |punishment.
What |is |fraud? |- |CORRECT |ANSWER✔✔-An |International |act |of |criminal |deception |in |order |to |
obtain |an |unjust |or |illegal |advantage. |Usually |for |personal |gain.
Reasons |people |commit |fraud |- |CORRECT |ANSWER✔✔-- |Pressure |
- |Opportunity |
, - |Rationalization
4th |Capacity
What |is |anti-bribery |and |corruption? |- |CORRECT |ANSWER✔✔-Bribrery |is |the |giving |or |
receiving |of |a |financial |or |other |advantage |in |connection |with |the |improper |performance |of |a |
position |or |trust, |or |a |function |that |is |expected |to |be |performed |impartially, |or |in |good |faith.
Anti-bribery |and |Corruption |Law? |- |CORRECT |ANSWER✔✔-- |The |Foreign |Corrupt |Practices |Act |
US
- |The |UK |Bribery |Act |2010
What |is |tax |avoidance? |- |CORRECT |ANSWER✔✔-The |legal |means |to |reduce |the |tax |owed.
What |is |tax |evasion? |- |CORRECT |ANSWER✔✔-The |illegal |means |to |avoid |paying |tax |owed.
Regulation |to |combat |tax |evasion? |- |CORRECT |ANSWER✔✔-The |Foreign |Account |Tax |
Compliance |Act |(FATCA)
Types |of |financial |crime |risks? |- |CORRECT |ANSWER✔✔-- |Regulatory
- |Legal |
- |Financial
- |Reputational
Anti |Money |Laundering |Regulations? |- |CORRECT |ANSWER✔✔-- |Bank |Secrecy |Act |(BSA) |US |
- |5th |AML |Directive |EU
- |The |ML |and |TF |Regulation |2019 |UK
