Online Access Free CFCS Exam Questions

Mr. Smith registered a business and opened a bank account under the name of ABC Consulting Services. Mr.
Smith and his wife were signatories on the account and the contact address for the account was that of his home in Palm Beach ABC Consulting Services had no website and Mr. Smith did not provide any actual consulting services.
Which term describes ABC Consulting Services?

• A.A shell company
• B.A front company
• C.A nominee
• D.A shelf company

A financial institution operates in multiple jurisdictions and encounters challenges in ensuring consistent compliance with OFAC sanctions across its global operations. What would be the most effective approach for the institution to enhance cross-border sanctions compliance?

• A.Conducting regular risk assessments to identify jurisdiction-specific sanctions risks and adjust compliance measures accordingly.
• B.Establishing a centralized sanctions compliance team responsible for overseeing compliance efforts in all jurisdictions.
• C.Implementing jurisdiction-specific sanctions compliance policies tailored to the regulatory requirements of each country.
• D.Outsourcing sanctions compliance responsibilities to third-party service providers specialized in global compliance solutions.

A mid-size bank receives a S35 000 wire transfer request in an email from the chief financial officer (CFO) of one of the bank's business clients. The client's head of accounting was copied on the message An employee at the bank replied to the email with a wire transfer form and agreement for the client to complete.
The CFO replied with the signed and completed forms the bank began processing the wire transfer and as a routine measure called the number in the CFO's email signature to validate request. The bank received verbal confirmation to complete the transfer.
The next day a bank employee receives a call from the head of the clients accounting department inquiring about the $35,000 transfer believing it to be an error. The bank employee says that the transfer was initiated by the company CFO and produces the wire transfer forms. The head of accounting says that no such transfer was authorized and connects the bank with the CFO to confirm this Now believing the transaction to be fraudulent the bank starts an attempt to reverse the wire transfer.
Based on this information which is a weakness in the bank's cybersecurity program?

• A.The bank should have authenticated the request using contact information on file with the bank before processing the wire
• B.The bank should have required a hard copy of the wire transfer agreement to be returned via fax before processing the wire
• C.The bank should have replied to the email and requested confirmation from the head of accounting in addition to the CFO
• D.The bank should have scanned the completed wire transfer forms that the CFO attached to her email for malware used in account takeover schemes

Your construction company wishes to hire Mr. X to provide consultancy services within his country. He has his own consulting firm and is also a board member of a state-owned bank Mr. X is known for having high-level business connections and for charging exorbitant rales for his services Mr. X does not like to complete paperwork and prefers to work based on a verbal agreement.
Which three facts are red flags requiring enhanced due diligence? Choose 3 answers

• A.Mr. X may be considered to be a politically exposed person (PEP)
• B.The price Mr. X charges is suspect since he is in the business of helping companies obtain and retain business
• C.The price Mr. X charges is suspect if fees are not itemized and documented
• D.As a board member of a stale-owned bank Mr. X may be considered a public official under the U.S.
  Foreign Corrupt Practices Act

During an organizational overview of financial crime controls, Ms. Lee, the compliance analyst, discovers that certain high-risk customers have not undergone enhanced due diligence (EDD) as required by regulatory guidelines. What is the most appropriate action for Ms. Lee to take?

• A.Document the findings and recommend the implementation of robust procedures for EDD.
• B.Notify senior management and request immediate termination of the high-risk customer relationships.
• C.Ignore the issue as long as there have been no suspicious transactions involving the high-risk customers.
• D.Conduct a retrospective review of the high-risk customers' transactions to assess potential risks.