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CAFCA FINAL EXAM
Question 1: What is financial crime?
CORRECT ANSWER: Illegal activities that are usually
economically motivated.
Question 2: What is money laundering?
CORRECT ANSWER: The process of concealing or
disguising the existence, source, movement, destination, or illegal application of criminally derived property or funds to make them appear legitimate.
Question 3: Three stages of money laundering
CORRECT ANSWER: - Placement
CORRECT ANSWER: - Layering
CORRECT ANSWER: - Integration
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Question 4: What is terrorist financing?
CORRECT ANSWER: Involves fund for an illegal
political purpose to support terrorist activities. However, money is necessarily derived from the proceeds of illegal activity. Hawala system plays a big roles in moving terrorist related funds.
Question 5: What are sanctions?
CORRECT ANSWER: Political decision made as part
of diplomatic efforts by countries, regional organization, and international bodies. Sanctions are primarily a foreign policy and security tool. Sanctions are intended to affect behavioral change through deterrence, prevention, or punishment.
Question 6: What is fraud?
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CORRECT ANSWER: An International act of criminal
deception in order to obtain an unjust or illegal advantage.Usually for personal gain.
Question 7: Reasons people commit fraud
CORRECT ANSWER: - Pressure
CORRECT ANSWER: - Opportunity
CORRECT ANSWER: - Rationalization
CORRECT ANSWER: 4th Capacity
Question 8: What is anti-bribery and corruption?
CORRECT ANSWER: Bribrery is the giving or
receiving of a financial or other advantage in connection with the improper performance of a position or trust, or a function that is expected to be performed impartially, or in good faith.
Question 9: Anti-bribery and Corruption Law?
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CORRECT ANSWER: - The Foreign Corrupt Practices
Act US
CORRECT ANSWER: - The UK Bribery Act 2010
Question 10: What is tax avoidance?
CORRECT ANSWER: The legal means to reduce the
tax owed.
Question 11: What is tax evasion?
CORRECT ANSWER: The illegal means to avoid
paying tax owed.
Question 12: Regulation to combat tax evasion?
CORRECT ANSWER: The Foreign Account Tax
Compliance Act (FATCA)