Question 1

Your client has been targeted by a payments scam that has resulted in him remitting significant sums of money to the entity perpetrating the fraud Your client has traced the payments which revealed that the ultimate beneficiary of the fraud is Company A that appears to be operating from the British Virgin Islands (BVI) Before taking any further action your client would like to confirm if Company A Ltd is incorporated in the BVI. How can they do this?

Options :

A : Contact the Commercial Division of the High Court of the BVI

B : Conduct a search of the Registry of Corporate Affairs in the BVI

C : Request the details from the BVI Chamber of Commerce

D : Contact Company A directly

Answer: B

Question 2

In the context of Compliance Programs and Controls, which of the following statements best describes the purpose of an organizational overview of financial crime controls?

Options :

A : To ensure strict adherence to internal audit procedures.

B : To identify potential vulnerabilities and risks within the organization's operations.

C : To facilitate efficient communication between different departments.

D : To solely focus on regulatory compliance without considering business objectives.

Answer: B

Question 3

Phillips Importers LLC. is a shell company owned by Jon Phillips Mr. Phillips is very active in his local church He has convinced a large number of individuals from his church to invest in the Phillips Fund, which guarantees 10% returns.He lakes the money he collects and puts itina bank account for Phillips Importers LLC. He uses that money to market the Phillips Fund to new investors, print statements, pay dividends to his investors and pay some of his personal expenses. Which types of fraud isMr.Phillips committing? Choose 2 answers

Options :

A : Pyramid scheme

B : Market manipulation

C : Ponzi scheme

D : Affinity fraud

Answer: C,D

Question 4

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?

Options :

A : Immediately report the findings to OFAC and await further instructions.

B : Suspend all transactions until the individuals and entities are removed from the SDN list.

C : Implement enhanced due diligence procedures for transactions involving high-risk countries.

D : Conduct a retrospective review of transactions to assess the extent of potential violations.

Answer: A

Question 5

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?

Options :

A :

The sales department may be violating sanctions through the undocumented saleofdual-use goods to countriessubjectto U S sanctions

B :

The sales department manager may be involved in an embezzlement scheme tied to the returned airplane parts

C :

The sales department may be involved in a tax evasion scheme involving falsified returns to disguise undisclosed assets

D :

The sales department may beinvolved in a fraudulent revenue recognition scheme related to hidden payment andrefundterms

Answer: D

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