The Financial Crime SpecialistExam (CFCS)

You are investigating a steel company that is under suspicion of being used by a mafia organization as a conduit for illicit funds transfers and commodities transactions You come across documents of a len-ton shipment of low-grade industrial steel bars for Thailand divided into one-ton containers.

Which is the BEST indicator that this shipment is suspicious and requires additional investigation?

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 financial institution operates in multiple jurisdictions and encounters challenges in ensuring consistent compliance with OFAC sanctions across its global operations. What would be the most effective approach for the institution to enhance cross-border sanctions compliance?

You are investigating a Hong Kong clothing manufacturer that is allegedly laundering money (or a human trafficking organization.

Deposits to the corporate bank account totaled $4.5 million (USD) for the year 2011 and originated from a single source in Panama that makes payment through a bank account in Riga Latvia.

Payments are received through wire transfers They are always in odd amounts of dollars and cents and the SWIFT messaging always slates that the payments are for a seasonal line of women s dresses.

Which is NOT a red flag for money laundering?

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?

Company A a multinational manufacturing corporation, recently acquired a local company in Country Z that has a high level of state involvement in ihe economy and history of corruption Before purchasing the company. Company A hired a major international law firm to conduct a due diligence review and uncover any potential violations of global anti-corruption laws When the review came back free of issues Company A completed its acquisition.

Two years later executives from Company A were conducting their first anti-corruption compliance training with employees from the Country Z office During the training session Company A executives were alerted by Country Z-based employees that the distributors the company uses may be bribing government officials Company A had not conducted a review of distributors in Country Z, and when it began to look into the allegations it found widespread potential Foreign Corrupt Practices Act (FCPA) violations.

Which are two weaknesses in Company A's anti-corruption compliance program? Choose 2 answers

You are a law enforcement agent investigating an associate of Country X's former prime minister who is suspected of helping high-level government officials facilitate a scheme to misappropriate hundreds of millions of dollars in public funds. During your investigations, you uncovered a network of legal entities that you believe have been used to transfer and conceal the proceeds of this corruption scheme.

Through public record searches requests to law enforcement in other jurisdictions and subpoenas to financial institutions you have outlined the following arrangement.

• The associate contacted a relationship manager at a small private bank based in Country X to open a private bank account

• The associate's attorney created an offshore investment company Tropico, Ltd that holds the private banking account

• The associates attorney then appointed three shelf companies formed in Panama as Tropico's directors

• A fourth shelf company formed in the Cayman Islands was named as the primary shareholder

You are now trying to determine the true owners behind the funds and assets concealed through this corporate structure Wh.ch is the MOST effect.ve next step to identify these individuals?

You are a financial crime specialist who has been asked to investigate allegations of internal fraud at a construction supplies manufacturer Managers believe one or more employees are working with outsiders to siphon off company funds, but have little information on how it is happening.

The company s sales have grown significantly in recent months and it is expanding the geographic area in which it operates It relies on a large number of third parties to conduct its operations, including distributors and sales agents You have started your investigation by examining invoices and other payment records made by the manufacturing company to third parties.

Which record would you prioritize as MOST suspicious?

You are a federal investigator who is trying to determine if a privately held company is evading taxes through an offshore shell corporation.

Which document would be MOST helpful to determine the beneficial owner of the shell corporation?