Question 1

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 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

A bank holds accounts for several different gatekeeper clients such as attorneys accountants and company formation agents II is conducting a periodic review of these accounts and updating their risk ratings. Which two accounts should the bank consider to be at highest risk? Choose 2 answers

Options :

A :

A company formation agent that establishes private investment companies primarily for clients in Africa and Asia

B :

An attorney whose practice specializes in cases involving maritime law in the international shipping industry

C :

An accountant at a private accounting firm whose clients are large multinational agricultural corporations

D :

A notary in Latin America who specializes in assisting clients from other countries with high-end real estate transactions

Answer: A,D

Question 4

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 highlevel 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

Options :

A : Mr. X may be considered to be a politically exposed person (PEP)

B : The price Mr. X charges is suspect if fees are not itemized and documented

C : 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

D : The price Mr. X charges is suspect since he is in the business of helping companies obtain and retain business

Answer: A,B,C

Question 5

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

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