CGSS TEST PAPER QUESTIONS AND ANSWERS GRADED A+
✔✔During which period did governments impose sanctions more often than in prior
decades? - ✔✔Cold War
During the Cold War, governments imposed sanctions more often than in prior decades.
The United States, as one of the two superpowers, imposed sanctions significantly
more than any other country. It was not until the 1990s, after the Cold War ended, that
unilateral sanctions began to be replaced by 1 Lance Davis and Stanley Engerman,
"History Lessons: Sanctions: Neither War nor Peace," The Journal of Economic
Perspectives 17, no. 2 (2003), 189. 2 Davis and Engerman, 189. CGSS Version 1.57
Page 9 multilateral, intergovernmental coalitions
✔✔The bombing of which site provoked questions about whether sanctions were an
alternative to war or might hasten military force - ✔✔Pearl Harbor
US trade sanctions against Japan factored into the Japanese decision to enter World
War II and attack Pearl Harbor. This situation provoked questions regarding whether
sanctions were an alternative to war, or whether they instead might rush nations to use
military force. After the conclusion of World War II, the United Nations was formed in
1945, and sanctions were formally recognized within the charter as a foreign policy tool.
✔✔Which of the following has not been used as an official reason for imposing
sanctions? - ✔✔NOT
Raising money for humanitarian relief
Correct
Preventing war
Reinforcing labor rights (Strengthening human rights or labor rights)
Freeing captured citizens
✔✔The assassination of a Washington Post reporter in Turkey in 2018 resulted in
sanctions under the provisions of which of the following? - ✔✔Magnitsky Act
✔✔Which of the following is not a purpose of sanctions? - ✔✔Alternative to the use of
force
Prevent the proliferation of weapons of mass destruction
Punish human rights abusers
, ✔✔The UN Security Council has set some key criteria for targeting individuals and
entities. Which of the following scenarios is most likely to result in the imposition of
Security Council sanctions against an entity? - ✔✔Violating human rights
✔✔Which of the following countries is not a permanent member of the U.N. Security
Council? - ✔✔Russia
France
China
not egypt
✔✔The Denied Persons List is a list of people who have been denied which type of
privileges? - ✔✔Export
✔✔FinCEN issues a rule designating a Russian bank as a primary money laundering
concern. As a compliance officer at a European financial institution with US
correspondent accounts, you receive a notice from your US correspondent. What
should you do? - ✔✔Escalate the notice to senior management and general counsel.
✔✔Countries with strategic deficiencies in their anti-money laundering and
counterterrorism financing regimes are placed on which of the following maintained by
FATF? - ✔✔Greylist
✔✔Which of the following statements is true? - ✔✔The European Union makes general
exceptions for acts that are personal in nature.
✔✔OFAC's "A Framework for OFAC Compliance Commitments" document identifies
which of the following as the first of five essential compliance components? -
✔✔Management commitment
According to OFAC, the five essential components of an SCP are (1) management
commitment; (2) risk assessment; (3) internal controls; (4) testing and auditing; and (5)
training
✔✔According to the Wolfsberg Group, the key purpose of a risk assessment is to drive
improvements in financial crime risk management through identifying: - ✔✔the ways in
which general and specific sanctions risks are mitigated by a firm's sanctions
compliance program controls.
✔✔Which of the following is true regarding the determination of a financial institution's
risk appetite? - ✔✔The firm first needs to define what it considers to be high, medium,
and low risk for customers, products/services, countries, and delivery channels.
✔✔During which period did governments impose sanctions more often than in prior
decades? - ✔✔Cold War
During the Cold War, governments imposed sanctions more often than in prior decades.
The United States, as one of the two superpowers, imposed sanctions significantly
more than any other country. It was not until the 1990s, after the Cold War ended, that
unilateral sanctions began to be replaced by 1 Lance Davis and Stanley Engerman,
"History Lessons: Sanctions: Neither War nor Peace," The Journal of Economic
Perspectives 17, no. 2 (2003), 189. 2 Davis and Engerman, 189. CGSS Version 1.57
Page 9 multilateral, intergovernmental coalitions
✔✔The bombing of which site provoked questions about whether sanctions were an
alternative to war or might hasten military force - ✔✔Pearl Harbor
US trade sanctions against Japan factored into the Japanese decision to enter World
War II and attack Pearl Harbor. This situation provoked questions regarding whether
sanctions were an alternative to war, or whether they instead might rush nations to use
military force. After the conclusion of World War II, the United Nations was formed in
1945, and sanctions were formally recognized within the charter as a foreign policy tool.
✔✔Which of the following has not been used as an official reason for imposing
sanctions? - ✔✔NOT
Raising money for humanitarian relief
Correct
Preventing war
Reinforcing labor rights (Strengthening human rights or labor rights)
Freeing captured citizens
✔✔The assassination of a Washington Post reporter in Turkey in 2018 resulted in
sanctions under the provisions of which of the following? - ✔✔Magnitsky Act
✔✔Which of the following is not a purpose of sanctions? - ✔✔Alternative to the use of
force
Prevent the proliferation of weapons of mass destruction
Punish human rights abusers
, ✔✔The UN Security Council has set some key criteria for targeting individuals and
entities. Which of the following scenarios is most likely to result in the imposition of
Security Council sanctions against an entity? - ✔✔Violating human rights
✔✔Which of the following countries is not a permanent member of the U.N. Security
Council? - ✔✔Russia
France
China
not egypt
✔✔The Denied Persons List is a list of people who have been denied which type of
privileges? - ✔✔Export
✔✔FinCEN issues a rule designating a Russian bank as a primary money laundering
concern. As a compliance officer at a European financial institution with US
correspondent accounts, you receive a notice from your US correspondent. What
should you do? - ✔✔Escalate the notice to senior management and general counsel.
✔✔Countries with strategic deficiencies in their anti-money laundering and
counterterrorism financing regimes are placed on which of the following maintained by
FATF? - ✔✔Greylist
✔✔Which of the following statements is true? - ✔✔The European Union makes general
exceptions for acts that are personal in nature.
✔✔OFAC's "A Framework for OFAC Compliance Commitments" document identifies
which of the following as the first of five essential compliance components? -
✔✔Management commitment
According to OFAC, the five essential components of an SCP are (1) management
commitment; (2) risk assessment; (3) internal controls; (4) testing and auditing; and (5)
training
✔✔According to the Wolfsberg Group, the key purpose of a risk assessment is to drive
improvements in financial crime risk management through identifying: - ✔✔the ways in
which general and specific sanctions risks are mitigated by a firm's sanctions
compliance program controls.
✔✔Which of the following is true regarding the determination of a financial institution's
risk appetite? - ✔✔The firm first needs to define what it considers to be high, medium,
and low risk for customers, products/services, countries, and delivery channels.
