ACFCS Financial Crime Specialist Sample Questions:

1. Mr. Smith, the compliance manager of ABC Bank, is tasked with conducting a risk assessment of the institution's correspondent banking relationships. Which of the following factors should Mr. Smith consider when assessing the risks associated with correspondent banking?

A) The number of transactions processed through correspondent accounts.
B) The total assets of ABC Bank.
C) The geographical location of correspondent banks' headquarters.
D) The size of transactions conducted by correspondent banks.

2. Which two features of hawala make it particularly attractive to terrorist financing? Choose 2 answers

A) The nature of the hawala system is based on trust making formal records unnecessary
B) Hawala utilizes wire transfers thereby making it harder for authorities to track
C) The hawala system generates a great deal of profits often used for terrorist financing
D) The value of the transaction can be transferred across jurisdictions without the need for a hard currency transfer

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

A) A notary in Latin America who specializes in assisting clients from other countries with high-end real estate transactions
B) An attorney whose practice specializes in cases involving maritime law in the international shipping industry
C) A company formation agent that establishes private investment companies primarily for clients in Africa and Asia
D) An accountant at a private accounting firm whose clients are large multinational agricultural corporations

4. Company A is a New Jersey-based company, that trades in the metals industry and has been in business for less than two years. To augment their financing, they approach several banks to obtain loans to be repaid in
180 days. The collateral for the loans is the receivables. When the banks ask Company A for documentation to support the receivables, they are presented with documentation that suggests the receivables are coming from customers in various industries none of which have anything to do with metals.
Which is a red flag of illegal incoming revenue to an entity?

A) The receivables transactions have no business or apparent lawful purpose related to the metals industry
B) A relatively young company approaching several banks for a loan is very unusual
C) it is very unusual for a company to secure a loan based on receivables from other companies
D) The loans are very short-term and should not be used to augment their financing

5. A pharmaceutical company is developing a new Alzheimer's drug All of the employees are subject to confidentiality agreements because the drug has not been publicly announced One of the employees talks to his doctor about this new drug.
Which are the possible crimes resulting from this breach of confidentiality? Choose 2 answers

A) The doctor decides to buy stock in the pharmaceutical company
B) The doctor asks to be included on the clinical trials of the drug thereby benefitting his own practice
C) The doctor collaborates with friends and family to invest in the company
D) The doctor broadcasts the news about this new drug to his Alzheimer's patients. giving them false hope

Solutions: