ACFCS Financial Crime Specialist Sample Questions:

1. You are Ihe chief anti-money laundering officer of a lull-service bank and you are designing a risk-based customer acceptance program to determine the Terrorist Financing risks specific to not-for-profit (NFP) organizations.
Which enhanced due diligence activity is MOST essential for these types of client relationships due to the elevated risk that NFPs pose?

A) Monitor the financial activity in relation to the stated purpose and objectives of the entity
B) Obtain a copy of the organization's charier
C) For NFPs customer acceptance requirements are the same as for any other customer
D) Establish who controls the organization and its financial activities

2. Ms. Rodriguez, the compliance officer at XYZ Bank, is reviewing the bank's sanctions screening process.
She notices that the screening system has a high rate of false positives, leading to delays in processing transactions. What is the most effective approach for Ms. Rodriguez to improve the efficiency of the sanctions screening process?

A) Enhance the screening system with advanced technologies such as machine learning and artificial intelligence.
B) Implement manual review procedures for all transactions flagged as potential matches.
C) Increase the threshold for triggering sanctions alerts to reduce the number of false positives.
D) Disable the sanctions screening system to eliminate false positives altogether.

3. Which of the following factors should be considered when assessing the effectiveness of an organization's financial crime controls during an organizational overview?

A) The geographical locations of the organization's operations.
B) The organization's profitability.
C) The frequency of employee training on financial crime prevention.
D) The number of employees in the compliance department.

4. You are a compliance officer at a payment card provider You have been dealing with a number of suspected identity theft cases and are reviewing your policies and procedures to highlight red flags within customer behaviors that might be indicative of stolen identities.
Which are red flags in detecting and investigating identity theft? Choose 2 answers

A) The area code of the customer s personal phone number does not match the area code of his business phone number
B) An account that has been inactive for a long time has been closed by the customer
C) The person presenting the identification seems to be much younger than his photo
D) Mail sent to the customer is returned repeatedly as undeliverable even though transactions are being conducted on the account

5. 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 individual or entity involved in the default loan maintains numerous holding companies
B) The payments toward the loan have been delinquent many times over several years of maintaining Ihe loan
C) The loan IS collateralized by accounts receivable
D) A history of bankruptcies is found relating to the defaulting entity or individual

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