Jan 03, 2025 PASS ACFCS CFCS EXAM WITH UPDATED DUMPS
CFCS Questions PDF [2025] Use Valid New dump to Clear Exam
NEW QUESTION # 101
During a risk assessment of its customer onboarding process, a financial institution identifies a lack of adequate procedures for verifying the beneficial ownership of corporate clients. What is the most appropriate action for the institution to take to address this deficiency?
- A. Revise the customer onboarding procedures to incorporate requirements for verifying beneficial ownership.
- B. Implement enhanced monitoring for transactions involving corporate clients with unidentified beneficial owners.
- C. Immediately suspend all new customer onboarding activities until the procedures are updated.
- D. Disregard the issue as long as corporate clients pass other due diligence checks.
Answer: A
NEW QUESTION # 102
You are a manager in Ihe fraud department of a regional bank Upon returning from a three-day weekend one of your analysts informs you that in the last 48 hours a high volume of suspicious activity has been detected in a number of a small business accounts.
The accounts are showing a similar pattern - first a small funds transfer to institutions in other countries followed by a series of larger transactions to the same institutions initiated in rapid succession.
Concerned about the activity you contact your senior compliance managers and recommend these transactions be suspended or clawed back pending further investigation. Based on the information available which additional steps should you recommend?
Choose 2 answers
- A. Require the bank to call a known number to confirm all international transactions from small business accounts
- B. Contact small business accountholders to alert them that they may have been the victims of a ransomware attack
- C. Suspend all active credit cards currently issued to small business accounts and issue new ones
- D. Contact the cybersecurity department to alert them that your institution may have been the victim of a data breach
Answer: A,D
NEW QUESTION # 103
During a risk assessment of its correspondent banking relationships, a financial institution discovers that one of its correspondent banks operates in a high-risk jurisdiction known for weak anti-money laundering (AML) controls. What is the most effective approach for the institution to manage the risks associated with this correspondent banking relationship?
- A. Immediately terminate the correspondent banking relationship with the bank operating in the high-risk jurisdiction.
- B. Conduct enhanced due diligence on transactions involving the correspondent bank.
- C. Limit the types of transactions conducted with the correspondent bank to reduce exposure to risks.
- D. Increase the frequency of audits conducted at the correspondent bank's premises.
Answer: B
NEW QUESTION # 104
You have been askedtoreview Ihe annual report lor astartupcompanythatprovides digital identity verification services to online merchants. The company's founder has recently approached several groups of investors to sell a portion of his shares in the company, but after reviewing financial statements the investors had concerns over potential improper accounting to misrepresent the company's position and have asked you to review further.
Based on Ihe annual report it appears the company's total net position has increased each quarter for the past year Looking at sales records you determine a significant portion of the company's revenue comes from one client, a contract with a software development firm for $800,000 each quarter.
Whichfurtherfinding from the annual report and financial statements is Ihe BEST focus for your investigation?
- A. The company incurred a tax charge this year of over $120,000
- B. The company lists an increase in expenses this year due to changes in overtime payment policies
- C. The company has a 10% increase in accounts payable year over year
- D. The company s largest expense is a quarterly payment of $790,000 for coding services
Answer: D
NEW QUESTION # 105
During a sanctions compliance training session, an employee asks about the consequences of facilitating transactions involving individuals or entities on a sanctions list. What is the most accurate response to the employee's inquiry?
- A. Facilitating transactions involving sanctioned individuals or entities may result in both civil and criminal penalties.
- B. Facilitating transactions involving sanctioned individuals or entities is permissible if authorized by senior management.
- C. Facilitating transactions involving sanctioned individuals or entities is permissible if the transactions are conducted in foreign currency.
- D. Facilitating transactions involving sanctioned individuals or entities may result in civil penalties but not criminal charges.
Answer: A
NEW QUESTION # 106
James Thieferlon has stolen Linda Victim's ATM card and PIN James withdrew a total of $10,000 from Linda's checking account over several transactions using several ATM machines James then created lake invoices on hisbrother'scompany stationary to make it appear as though he provided S15,000 of IT goods for his brother's import/export company. From there, he presented the invoices to his bank and deposited the stolen S10,000 with the legitimate S5,000 he made from selling personal goods on the Internet.
Which step could be considered money laundering?
- A. Creating false invoices for his brother's import/export company
- B. Depositing the money into his own bank account with the legitimate $5,000
- C. Smurfing committed by withdrawing the stolen $10,000 from several ATMs in small values
- D. Not openly declaring the $5,000 as Interne! sales revenue to be able to claim different taxes on them
Answer: B
NEW QUESTION # 107
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. Notify senior management and request immediate termination of the high-risk customer relationships.
- B. Ignore the issue as long as there have been no suspicious transactions involving the high-risk customers.
- C. Conduct a retrospective review of the high-risk customers' transactions to assess potential risks.
- D. Document the findings and recommend the implementation of robust procedures for EDD.
Answer: D
NEW QUESTION # 108
Your client is the victim of an investment fraud You traced the investment payments made by your client to XYX, Inc. Your research indicates XYX is incorporated in Delaware.
Which means are used to obtain beneficial ownership information from a state authority?
- A. Petition the Delaware Court of Chancery to obtain details ol beneficial ownership
- B. Contact the Delaware Secretary of State and request the list of corporate officers and directors
- C. Contact the corporate Registered Agent and request a list of the shareholders
- D. No beneficial ownership information is required to be obtained by the Delaware Secretary ol State
Answer: D
NEW QUESTION # 109
An employee of Company A is injured in a car accident and rushed to a government-owned hospital in Country X. Prior to admitting the patient the head doctor insists that is it customary for foreigners to pay the hospital a generous donation" and insinuates that the patient will not be admitted without the payment.
The request is an example of which offense?
- A. Extortion
- B. Bribery
- C. Solicitation
- D. Duress
Answer: B
NEW QUESTION # 110
You are an examiner with Ihe regulatory agency in your jurisdiction that oversees money services businesses (MSBs).
You are conducting an examination of a midsize MSB with agents located domestically and in several countries. A previous examination last year found numerous weaknesses in Ihe MSB s anti-money laundering and fraud prevention programs, and you are reviewing these programs to determine if improvements have been made.
Which activity would MOST likely lead your agency to lake further regulatory action against the MSB?
- A. The MSB has not updated the AML training it provides to its agents in almost four months
- B. The MSB's suspicious activity/transaction report (SAR/STR) filings related to cybercrime have increased in the past year
- C. The MSB has suspended agents found to be facilitating fraud schemes and allowed them to rejoin as a new company
- D. The MSB is not applying FATCA's withholding tax to its domestic money transactions
Answer: C
NEW QUESTION # 111
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 # 112
You are an investigator pursuing a suspected fraudster whom you believe is leading a multi-million dollar Ponzi scheme targeting the elderly in your country You believe you are close to gathering the evidence needed to recover some of the victims losses However you are missing some transaction records from a financial institution that would connect the suspect to accounts holding the proceeds of the fraud.
These records can only be released to law enforcement or government regulators. You have a friend in the local police department who is willing to contact the institution and request the records under the pretenses they are needed for an unrelated police investigation.
Given these circumstances would it be ethical for you to ask your friend to obtain the records?
- A. This action is unethical because your avenue for obtaining Ihe records was inappropriate, even if you did not directly misrepresent yourself
- B. This action is ethical because you are acting in the best interests of your clients, the fraud victims who need this information to recover some of Their losses
- C. This action is unethical because you do not have proof that Ihe suspect has committed the fraud and are only acting on your belief
- D. This action is epical because the records are being turned over to a law enforcement official and you the investigator, are not directly misrepresenting yourself
Answer: A
NEW QUESTION # 113
An offshore energy company is attempling to make payment to Iran for a bulk oil purchase The payment is routed through the offshore bank's New Y affiliate bank where the funds are converted to USD to be forwarded to Iranian Oil LTD, Tehran, Iran.
Which forward payment scheme is MOST likely to be used by banks to defeat the U.S. Office of Foreign Assets Control (OFAC) Sanctions?
- A. Intermediated Delivery Service (IDS) - forwarding funds to a non-sanctioned affiliate bank not in the US lo be forwarded to a correspondent bank account inside Iran
- B. Stripping - removing the name and destination from the SWIFT messaging to mask the client's identity and location
- C. Redirection - sending funds to an Iranian oil shell company in a non-sanctioned country and then wiring them to Iranian Oil LTD Tehran
- D. Alternate Delivery Service (ADS) - referring to an automated clearing house service to forward payment to a service provider in a non-sanctioned country for final payment to Iranian Oil LTD
Answer: C
NEW QUESTION # 114
During a sanctions compliance review, a financial institution discovers that one of its clients has conducted transactions with individuals and entities on a sanctions list. What is the most appropriate action for the institution to take?
- A. Conduct enhanced due diligence on the client and continue monitoring their activities.
- B. Immediately terminate all business relationships with the client.
- C. Report the findings to the relevant authorities and seek guidance on next steps.
- D. Ignore the issue if the transactions were unintentional and the client is cooperative.
Answer: C
NEW QUESTION # 115
A large financial institution provides both analysis and research services and investment management services. An analyst is preparing to publicly release a major report that may impact the stock prices of several large corporations. The analyst has contacted a senior compliance officer saying that one of the institution's traders has requested an advance copy of Ihe report. The analyst believes the report may allow the trader to make trades that will benefit several of his clients. The analyst is asking for advice on how to proceed.
Which course of action should be taken in this scenario?
- A. The analyst should share the full report as long as the trader signs a disclosure that he will not trade on his clients' accounts based on this information
- B. The analyst should not provide the full report until it is publicly released through widely accessible channelsatthat point the report can also be shared with traders inside the institution
- C. The trader's request is a breach of ethics requiring disciplinary action The trader could receive penalties including not being allowed to conduct trades on behalf of his clients for several business days
- D. The analyst should not share the full report However she can request more details on the trader's clients and trading positions and provide limited information tailored to those circumstances
Answer: B
NEW QUESTION # 116
Your client is the family of a man who is deceased. The family remembers stones that their father (the deceased) had a Cayman Islands company where he held his investments. They have located a file containing an old Cayman Islands bank statement in the name of Company A Limited and in care of a post office address. They want to know what information they can find out about the company and the account.
How can they determine if the company still exists?
- A. Conduct an internet search for the company's name as company information is public
- B. Visit the post office and ask for access to the PO Box
- C. Contact the bank and ask the status of the company
- D. Check with the Corporate Registry as this information is public
Answer: D
NEW QUESTION # 117
Jane is a dual citizen of the United Stales and Country B a known lax haven, she has permanently relocated to Country B The lax authorities in the U.S. and Country B have a well-established cooperation agreement to reduce tax evasion.
Upon relocating in Country B she legally changed her name and obtained government identification in Country B's official language. She used this new identification to establish bank accounts in Country B. She created new shell companies and opened new business ventures which generated millions of dollars of income for her.
Jane files proper tax returns in Country B and discontinues filing U.S. income tax returns. Which statement is true?
- A. She broke Country B's tax laws by changing her name prior to opening new accounts since Country B now cannot match her records with the U.S. tax authorities
- B. As a dual citizen she is responsible for filing tax returns in both the U.S. and Country B until she renounces her U.S. citizenship
- C. She broke U.S. tax laws by not notifying the institutions of her name change when opening new bank accounts in Country B
- D. Considering she permanently moved to Country B she is only responsible for filing tax returns in Country B
Answer: B
NEW QUESTION # 118
A large banking institution retains a collections law firm to determine if a $25 million default on a commercial loan is fraud. The attorneys need to determine if the defaulting parly is worth pursuing in civil litigation by first determining if the defaulting entity and/or individual committed fraud by intentionally defaulting.
Which is an indicator or a red flag that the defaulting party could be committing fraud?
- A. The loan IS collateralized by accounts receivable
- B. A history of bankruptcies is found relating to the defaulting entity or individual
- C. The individual or entity involved in the default loan maintains numerous holding companies
- D. The payments toward the loan have been delinquent many times over several years of maintaining Ihe loan
Answer: B
NEW QUESTION # 119
According to the FATF 2012 recommendations which should countries do to ensure compliance around money remittance businesses?
- A. Provide a list of all money remittance businesses to the Egmont Group
- B. Prohibit money remittance businesses to be operated as a sole proprietorship
- C. Ensure proper identification and registration of persons operating money remittance businesses
- D. Require compliance measures to be implemented once a Suspicious Activity or Transaction Report (SAR or STR) has been died
Answer: C
NEW QUESTION # 120
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 shelf company
- B. A nominee
- C. A front company
- D. A shell company
Answer: D
NEW QUESTION # 121
You work in a federal government agency processing benefits for millions of people who meet a specified sell of conditions (e. g, age, business size, medical necessity). The requests for benefits are filed electronically. Knowing that Fraudsters often falsely claim eligibility you have been asked to recommend analytical solutions to reduce the fraud across the agency's operations.
Which analytical or investigative method would MOST effectively identify potential fraudsters at the agency's enterprise level of operations?
- A. Partner will a law enforcement agency to review each applicant prior to paying any benefits
- B. Check for negative news information about applicants
- C. Begin reviewing historical tax information to possibly conduct an audit of all suspicious applicants
- D. Proactively screen transactions or claim requests against established business rules or criminal patterns prior to payment
Answer: D
NEW QUESTION # 122
A company is concerned that its prepaid cards could be used by identity thieves seeking to launder funds.
You have been asked to examine its card program and designate features to reduce the risks of the cards being abused.
Which policy would MOST reduce the risk ol money laundering?
- A. The cards must be reloaded at the original point of sale using a debit or credit card
- B. The cards expire one year after their issue date and the funds revert to the customer
- C. The cards hold a low maximum value and can be reloaded by the customer several times a day
- D. The cards can be used al merchants' points of sale to get cash back on purchases
Answer: A
NEW QUESTION # 123
......
CFCS Study Guide Brilliant CFCS Exam Dumps PDF: https://www.exam4free.com/CFCS-valid-dumps.html
Passing ACFCS CFCS Exam Using 2025 Practice Tests: https://drive.google.com/open?id=1NZ6_2Rw1HGlXolXmlh9G47YRc8hYzMFN
