100% Passing Guarantee - Brilliant CFCS Exam Questions PDF [Nov-2024]
CFCS Dumps 2024 - NewACFCS CFCS Exam Questions
NEW QUESTION # 65
Ms. Thompson, a compliance manager at a financial institution, is tasked with developing a sanctions compliance program. Which of the following components should be included in the program to ensure comprehensive coverage of sanctions risks?
- A. Conducting market research to identify emerging trends in sanctions enforcement by regulatory authorities.
- B. Offering financial incentives to employees who achieve high levels of compliance with sanctions regulations.
- C. Ongoing monitoring of transactions to detect and report suspicious activities related to sanctions.
- D. Regular audits of the institution's financial statements to identify potential sanctions violations.
Answer: C
NEW QUESTION # 66
During a review of its compliance program, XYZ Bank discovers that it has processed transactions involving individuals and entities on the Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) list. What is the most appropriate action for XYZ Bank to take?
- A. Implement enhanced due diligence procedures for transactions involving high-risk countries.
- B. Immediately report the findings to OFAC and await further instructions.
- C. Suspend all transactions until the individuals and entities are removed from the SDN list.
- D. Conduct a retrospective review of transactions to assess the extent of potential violations.
Answer: B
NEW QUESTION # 67
Which fraud channel is used lo steal personal identifying information from your computer?
- A. Vishing
- B. Malware
- C. DoS (denial-of service) attack
- D. Spooling
Answer: B
NEW QUESTION # 68
You are an investigator at a small bank Your transaction monitoring system alerts you to unusual activity happening in a business account for a consulting firm ABC Consulting.
The account activity consists of incoming wires from a personal account at another institution there are three to four incoming wires each week from one individual. The next day an outgoing check would be issued to the same person for a slightly larger amount with the memo "Wire reimbursement + fee " Web searches indicate that this person is employed by your customer ABC Consulting Additional activity consists of small cash deposits.
Which are Ihe red flags in this scenario? Choose 2 answers
- A. Money being wired into this account from a personal account may constitute complying of funds
- B. The customer may be layering transactions to conceal the source or purpose of funds
- C. The customer does not appear to be operating a legitimate business
- D. The customer is a marketing consulting firm which is always considered a high-risk industry
Answer: B,C
NEW QUESTION # 69
Your firm has been retained aspairof a complex internal fraud case for a large corporation.Aspartof the investigation you are seeking to collect transaction records held in a subsidiary office located in another country.
The country has strict laws governing cross-border sharing of its citizens' personally identifiable information It does allow data sharing under sate harbor agreements with companies that meet certain data protection standards but your company does not currently have the criteria for such an agreement.
You are not sure il the records you are seeking would contain personal information subjecttothe country's data privacy laws but the matter is time-sensitive and reviewing these records is considered essential to move forward.
Which is Ihe BEST next step lo lake in your investigation?
- A. Review the transaction records within the subsidiary s country and only transmit relevant non-personal data back to your country
- B. Request that the transaction records be transmitted to your country immediately then delete any personally identifiable information during the review process
- C. Submit a request to law enforcement in the subsidiary's country to assist with searching and seizing the transaction records
- D. Initiate a review of your company's data protection standards lo identify any needed improvements and start the process to applyfora safe harbor agreement
Answer: A
NEW QUESTION # 70
David is the owner of afast-foodrestaurant He has made deposits into his bank account totaling $123,000 of which S51,000 is from cash deposits of mostly small denominations David deposited the S51,000 into his bank account over a one-month period at three different branches using multiple employees to make the deposits which are detailed below.
Branch 1: Deposits were made on February 3 6 and 9 in the respective amounts-$4,000 S6,000 and $5,300 Branch 2: Deposits were made on February 6 9 and 12 in the respective amounts-S3,750, $3,200 and S9,850 Branch 3: Deposits were made on February 3 7. and 13 in the respective amounts-$5,300 $9,750 and $3,850 Which red flags are indicative of money laundering?
Choose 3 answers
- A. Depositing round dollar amounts
- B. Having individuals other than the account signatory make deposits
- C. Making multiple transactions under the reporting threshold
- D. Conducting transactions at multiple branches
Answer: A,C,D
NEW QUESTION # 71
An international construction company was bidding on a large contract to redevelop and modernize a hydroelectric power system in a central Asian country. Theprojectwas being administered by an agency in the country's federal government but federal officials directed the company to contact a number of local officials for additional details on the project and its scope The company later wins its bid for the redevelopment contract and completes the protect.
A year later an internal auditor is conducting a routine review of past projects and notices certain irregularities in the bidding process for Ihe power system redevelopment. All of the company's major competitors had been rejected in the first round of bidding despite offering competitive pricing of the other firms considered in later rounds of bidding most were small companies and several were incorporated recently in the country where the project was taking place All of them put in bids that were higher or much lower than the company's winning bid.
The auditor is concerned that these unusual findings may indicate the company won its bid through a corruption scheme involving government officials. Which further finding BEST supports this possibility?
- A. The company s total costs for the project came in at 3% higher than the estimated costssubmittedduringthe bidding process
- B. The company won the bid and then subcontracted work to several of the smaller local firmsthathad also submitted bids
- C. Officials from the federal agency appeared to have limited contact with the local officials during the bidding process
- D. At least one of the companies that submitted a competing bid appears to be a sole proprietorship incorporated in another country
Answer: C
NEW QUESTION # 72
You are a compliance officer for a bank that provides services to a third-party payment processor. The processor facilitates credit card payments for online and physical retail stores located within your own country.
You conducted enhanced due diligence on the client when the account was originally opened two years ago.
Since then, periodic reviews have noted no changes in the client s operations ownership structure or other information.
Recently regulators in your country have issued penalties against other banks that had insufficient AML controls and monitoring on accounts held by payment processors Concerned, your legal department has asked you to review the client's risk status.
Which is the primary reason for your conclusion that the customer relationship is higher risk?
- A. The bank does not have visibility into the activities of the processor's customers
- B. The retail stores served by the processor are not covered by AML regulations
- C. The account relationship manager is reluctant to provide additional supporting documentation
- D. The payment processor conducts credit card transactions
Answer: A
NEW QUESTION # 73
Through an annual review for an insured persons government-provided health insurance claims you determine that the applicant's eligibility has been consistently and significantly overstated. Further the medical justification reveals possible duplicate procedures within a short period of time All details and documents provided by the applicant are verified to be accurate and valid.
This type of fraud is usually initiated from which involved party?
- A. Beneficiary or claimant
- B. No involved party, these are merely accidental errors in billing at the system level
- C. Health insurance company
- D. Service or health care provider
Answer: D
NEW QUESTION # 74
You are in charge of network security for a national financial institution. Despite your best efforts you have suffered a major data breach due to overseas hackers. You are now tasked with reacting to that breach.
Which action should you take immediately?
- A. Identify the sensitivity of the data and level of impact on the organization
- B. Reconfigure all of your access devices lo refuse connections for any IP address that is international
- C. Terminate all external connections to devices that hold sensitive customer data
- D. Deploy a new set of proxy firewalls to your intranet
Answer: C
NEW QUESTION # 75
A U.S. citizen opens an account in an offshore bank in a country that has a bilateral Model II FATCA agreement with an initial deposit of $10,000. USD Over the course of time the kinds in the account exceed
$60,000 USD.
Which obligation under FATCA applies?
- A. The bank is required to report U.S. account holders to the U.S. Internal Revenue Service
- B. The bank would be subject to a mandatory withholding tax on income Irom U S financial assets it holds
- C. The bank is requiredtofile a Suspicious Activity Report or Suspicious Transaction Report (SAR or STR)
- D. None the bank may accept Ihe deposited funds and is under no further obligation than to follow applicable local law
Answer: A
NEW QUESTION # 76
You are conducting customer due diligence and enhanced due diligence for a correspondent bank with offices in several countries that are suspected of significant money laundering activity. You want to obtain information about the compliance and anti-money laundering programs of the bank as well as general information about its organization and risk management policies.
Which resource is MOST likely to provide this type of information?
- A. World Bank Doing Business Database
- B. Bankers Almanac
- C. The bank's home jurisdiction corporate registry
- D. Wolfsberg International Due Diligence Repository
Answer: D
NEW QUESTION # 77
You are a long lime employee at a financial institution. Your Friend and coworker shared that she will soon leave to accept a position at a rival institution with more opportunities for promotion. She noted that she has large medical bills and needs a larger salary right away.
Lately you notice that she uses a USB drive when performing tasks lor no apparent reason. In addition, in management meetings your boss has discussed that the rival institution appears to have sensitive information from your institution You are unsure what to do.
Which is your BEST next step?
- A. Contact the internal audit staff who are currently on-site
- B. Call the whistleblower hotline at your financial institution
- C. Contact a human resources representative at your financial institution
- D. Consult compliance controls related to data theft
Answer: B
NEW QUESTION # 78
The CEO of a major publicly traded shipping company becomes awarethatsome of the contracts she negotiated are becomingunfavorableto the company In additionTradehas declined in her country due to the strong U.S. dollar.
Because the CEO believedthatthese contracts were strong and would increaseprofits,she shared this insider knowledge with her family and encouraged them to buy stock in the company Once it was clear the contracts wereunfavorable. she informed her family to sell all of their stock in small amounts to remain "under the radar" and avoid losing their investments. The CEO resigned andthe shipping company declared bankrupt within a few months.
Which are possible legal consequencesofthe CEO's ethical lapses? Choose 2 answers
- A. Lawsuits will be filed by shareholders
- B. The shipping company will be barred from doing business in the other country
- C. Investigations will be made by the bank that processed the sale of the stock
- D. Criminal charges will be brought against the CEO and her family
Answer: A,D
NEW QUESTION # 79
You arethe ChiefAnti-Money Laundering Officer for a large multinational financial institution and you are building your risk-based Enhanced Due Diligence (EDO) program.
Which business would LEAST likely be targeted tor EDD?
- A. A storage facility
- B. A charitable organization
- C. A law firm
- D. A travel agency
Answer: A
NEW QUESTION # 80
You are a fraud investigator lor a U S securities firm. You are currently investigating potential market manipulation involving stock in a company that was created in the Channel Islands.
One of your brokers has 500,000 shares of this stock in several of his customer's accounts This stock had no trading activity for the past several years In Ihe past 30days he has been selling stock in 5,000-share increments every day from his customer accounts.
Upon review of your firm's books you notice that none of your other customers have bought this stock. Your firm has filed a Suspicious Activity Report (SAR) on this activity. Since this activity is putting your firm at risk you decide to contact your regulator and law enforcement to further the investigation Which items do these agencies have access to that you would not? Choose 2 answers
- A. The names of Ihe beneficial owners of the company
- B. The names of the individuals purchasing Ihe stock
- C. SARs filed at other U S securities firms
- D. Emails sent by your broker regarding Ihe selling activity
Answer: B,C
NEW QUESTION # 81
An internal auditor is conducting a quality assurance review of sales results and records for a large U.S.
based aerospace and defense contracting firm The auditor has been tasked with reviewing the recordsofsales departments in several countries because the company has raised concerns over accounting discrepancies and possible issues with inflated sales figures.
In the records of one sales department the auditor documents an unusually high number of returnsofairplane parts. These returns come from purchasers who executed sales contracts only to invoke right of return shortly afterwards.
Upon reviewing thesesales contracts,the auditor cannot find specific provisions regarding right of return for purchasers.
Given this information which is the MOST likely conclusion the internal auditor will make?
- A. The sales department may be involved in a tax evasion scheme involving falsified returns to disguise undisclosed assets
- B. The sales department manager may be involved in an embezzlement scheme tied to the returned airplane parts
- C. The sales department may be violating sanctions through the undocumented saleofdual-use goods to countriessubjectto U S sanctions
- D. The sales department may beinvolved in a fraudulent revenue recognition scheme related to hidden payment andrefundterms
Answer: D
NEW QUESTION # 82
You are an investigator in a country that has a money laundering law that uses the list approach to identify the predicate offenses. There are 12 crimes on this list of predicate offenses. You are currently investigating a public official for suspected money laundering, and the source of the official's illegal income is not yet known You have just discovered a hidden bank account owned by the official in which $5 million has been transacted in the past year.
Which is Ihe MOST important in order to prove money laundering?
- A. Establish the layering phase of the transactions
- B. Analyze the disbursements from the bank account to prove Ihe integration phase
- C. Trace the source of the deposit into the bank account
- D. Identify all cash transactions within the account
Answer: C
NEW QUESTION # 83
Ms. Johnson, the compliance officer at DEF Credit Union, is conducting a risk assessment of the credit union's mobile banking services. Which of the following factors should Ms. Johnson consider when assessing the risks associated with mobile banking?
- A. The age demographics of credit union members.
- B. The level of encryption used in the mobile banking app.
- C. The number of branches operated by DEF Credit Union.
- D. The credit union's annual revenue.
Answer: B
NEW QUESTION # 84
The Director of Purchasing at Company A in the US is in charge of purchasing raw materials for vehicle manufacturing. To his supervisors the director appears to live a lifestyle well above his annual salary at the company You are asked to perform a financial investigation lo identify any red flags in Ihe purchasing / inventory departments.
Which two are red flags? Choose 2 answers
- A. There has been a decrease in inventory purchases but no decrease in sales
- B. There has been an increase in inventory purchases but no increase in sales
- C. There is little excess inventory and the company has a high inventory turnover
- D. There is a high volume of purchases from new vendors
Answer: B,D
NEW QUESTION # 85
During a routine audit, a financial institution discovers that its sanctions screening software has not been updated to include the latest changes to the OFAC SDN list. What is the most appropriate action for the institution to take?
- A. Immediately suspend all transactions until the screening software is updated.
- B. Conduct manual screening of transactions against the latest version of the SDN list until the software is updated.
- C. Proceed with transactions and update the screening software during the next scheduled maintenance.
- D. Notify OFAC of the software issue and seek guidance on interim measures.
Answer: B
NEW QUESTION # 86
A publicly traded corporation set up a shell company in an offshore jurisdiction for the purpose of making payments to government officials to win business The corporation funnels the proceeds through a London bank with a robust compliance program Once the scheme becomes public which is LEAST likely to occur?
- A. The bank will be subject to investigation by U.K. authorities
- B. The bank will be held liable for laundering Ihe proceeds of corruption
- C. The corporation will suffer damage to its reputation and diminished share price
- D. The corporation will be subject to sanctions by the offshore jurisdiction
Answer: D
NEW QUESTION # 87
Your country has received a spontaneous transmittal of information from Switzerland indicating lhal Person A the Director of Procurement from your country's Ministry of Internal Development maintains a bank account in Zurich with an average balance of $7,000 000. Previously there have been numerous allegations that Person A has received bribes in return tor favorable contract awards.
Which activity should be done FIRST to maximize the probability that these lunds are repatriated to your country?
- A. Submit a formal mutual legal assistance request to Switzerland requesting return of all funds in the account
- B. Initiate a criminal investigation of Person A in your country
- C. lndict Person A for money laundering in violation of Article 23 of the UNCAC
- D. Directly contact the bank in Zurich to determine the source of the funds
Answer: B
NEW QUESTION # 88
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