[Full-Version] 2024 Updated ACFCS Study Guide CFCS Dumps Questions
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NEW QUESTION # 59
During a routine organizational overview of financial crime controls, Mr. Garcia, the compliance officer, notices a significant increase in the number of false positives generated by the transaction monitoring system.
What is the most appropriate action for Mr. Garcia to take?
- A. Ignore the increase in false positives as they are common in such systems.
- B. Review and adjust the parameters of the transaction monitoring system.
- C. Immediately suspend all transactions until the issue is resolved.
- D. Request additional resources for the compliance department.
Answer: B
NEW QUESTION # 60
You work in financial crime compliance for a money services business (MSB) with an international network of agents whose core business is handling remittance transactions. As part of your periodic update to your risk assessment you are reviewing payment corridors and customer types.
Which payment corridor is MOST likely to present the highest risk?
- A. Payments by domestic workers from theUnitedArab Emirates to the Philippines
- B. Payments by temporary visa holders in the tech industry from countries in the European Union to India
- C. Payments by small business owners from the US to Yemen
- D. Payments by seasonal agricultural workers from Canada to the Caribbean
Answer: C
NEW QUESTION # 61
You operate a convenience store that also sells and cashes money orders and offers wire transfer services.
Which three activities on their own are sufficient red flags to warrant further due diligence into whether a transaction may be related to terrorist financing? Choose 3 answers
- A. A customer who has recently immigrated to the country sends funds to a high-nsk jurisdiction, where they used to live
- B. On a weekly basis a customer wires S2 500 to the charity Middle Eastern Orphans and Refugees Relief Association with a post office box address in New York City
- C. Every week immediately upon receiving a money transfer the customer purchases a series of money orders, prepaid debit and phone cards to be sent to other individuals
- D. Several customers receive a monthly wire transfer of funds from the same business which has an address in a high-risk jurisdiction
Answer: B,C,D
NEW QUESTION # 62
You are conducting a due diligence review of one of your firms' high-risk clients He runs an international import/export business and transacts in multiple currencies including Bitcoin. You notice a suspicious outgoing transaction Irom your firm and know your client often converts his currency to Bitcoin Since all transactions are public on the Bitcoin blockchain. you conduct research online and find the following string that coincides with the date, time and approximate amount of your client's transaction.
You want to contact Bitcoin to learn if this is, in fact your client.
Which part of the encrypted transaction can Bitcoin confirm for you?
- A. The ISP identifier
- B. Bitcoin cannot confirm any information
- C. The type of the currency converted to Bitcoin
- D. If either party is a merchant and the purpose of the transaction
Answer: B
NEW QUESTION # 63
You are the head of fraud risk management for a company that provides telecommunications services to business customers Recently an employee in the customer service department has approached you with concerns about a rise in customer complaints concerning overbilling.
In the past three months an increasing number of clients have complained they have been charged for unspecified "administrative fees beyond their contracted rates. You inquire with your company s operations department about these administrative fees but they are not aware of any changes to services or policies that would have led to new fees for customers After conducting an audit of customer billings you discover that the issue is widespread and you suspect it may be part of an internal fraud scheme on the part of one or more employees.
You initiate an internal investigation of company employees. Which employee should you investigate FIRST?
- A. An employee who led the periodic audit of customer billing last year but has since been promoted to a different role within your company's internal audit unit
- B. An employee who has oversight over accounts payable and is responsible for reviewing customer inquiries related to billing
- C. An employee who has recently been disciplined lor chronic absenteeism and was placed on a performance improvement plan
- D. An employee who is one of the leading sales learn members and is known for upselling existing customers on larger more profitable contracts
Answer: C
NEW QUESTION # 64
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?
- A. Invoices from the privately held company for exported products
- B. A business license lor Ihe operation of the shell corporation
- C. A power of attorney that grants the privately held corporation control over the shell corporation
- D. Previous lax filings of Ihe shell corporation in its home jurisdiction
Answer: C
NEW QUESTION # 65
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. The loans are very short-term and should not be used to augment their financing
- C. it is very unusual for a company to secure a loan based on receivables from other companies
- D. A relatively young company approaching several banks for a loan is very unusual
Answer: C
NEW QUESTION # 66
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. Report the findings to the relevant authorities and seek guidance on next steps.
- B. Conduct enhanced due diligence on the client and continue monitoring their activities.
- C. Ignore the issue if the transactions were unintentional and the client is cooperative.
- D. Immediately terminate all business relationships with the client.
Answer: A
NEW QUESTION # 67
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 shell company
- D. A front company
Answer: C
NEW QUESTION # 68
During a sanctions compliance training session, an employee asks about the implications of conducting transactions with individuals or entities on the OFAC Sectoral Sanctions Identifications (SSI) list. What is the most accurate response to the employee's inquiry?
- A. Conducting transactions with individuals or entities on the OFAC SSI list may result in both regulatory penalties and reputational damage.
- B. Conducting transactions with individuals or entities on the OFAC SSI list is permissible if the transactions are below a certain monetary threshold.
- C. Conducting transactions with individuals or entities on the OFAC SSI list is permissible if authorized by senior management.
- D. Conducting transactions with individuals or entities on the OFAC SSI list may result in reputational damage but not regulatory penalties.
Answer: A
NEW QUESTION # 69
You are a long lime employee at a financial institution. Your Friend and coworker shared that she will soon leave to accept a position at a rival institution with more opportunities for promotion. She noted that she has large medical bills and needs a larger salary right away.
Lately you notice that she uses a USB drive when performing tasks lor no apparent reason. In addition, in management meetings your boss has discussed that the rival institution appears to have sensitive information from your institution You are unsure what to do.
Which is your BEST next step?
- A. Consult compliance controls related to data theft
- B. Contact a human resources representative at your financial institution
- C. Contact the internal audit staff who are currently on-site
- D. Call the whistleblower hotline at your financial institution
Answer: D
NEW QUESTION # 70
An individual wrote emails lo a local government posing as officials from companies with ongoing contracts with the government In the emails, he requested that wire transfers for payments owed be remitted to new bank accounts The emails appeared legitimate because they included valid but unlawfully obtained tax identification numbers for the companies In all the individual managed to steal nearly $2 million.
Which step would BEST address Ihe gap in the localgovernment'sfraud prevention program?
- A. Conducting more frequent bank reconciliations to screen for fraudulent electronic transactions
- B. Conducting thorough due diligence on all contractors and subcontractors
- C. Conducting analyses of contractor tax identification numbers and their approved bank accounts
- D. Conducting a fraud risk assessment of the controls used for funds transfer approvals
Answer: D
NEW QUESTION # 71
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 U.S. tax laws by not notifying the institutions of her name change when opening new bank accounts in Country B
- B. 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
- C. 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
- D. Considering she permanently moved to Country B she is only responsible for filing tax returns in Country B
Answer: C
NEW QUESTION # 72
The bookkeeper lor Corporation A has been charged wilh embezzling corporate funds. It was discovered that the bookkeeper misappropriated customer checks received in the mail cashed the checks and wrote-off the accounts receivable asuncollectible. The corporation had policies to ensure there was a segregation of duties.
Which condition is MOST likely to have provided an opportunity for the bookkeeper to embezzle corporate income checks?
- A. The corporate mail duties of the receptionist which include logging the receipt of payments from customers are covered by a student intern when the receptionist calls in sick
- B. The bookkeeper enters all payments received (rom customers into the corporate Cash Receipts Journal
- C. The bookkeeper and receptionist who opens the mail cover lor each other while the other is at lunch
- D. The outside accountant receives and reconciles the monthly bank statement
Answer: C
NEW QUESTION # 73
A credit card company has recently become aware that fraudsters are obtaining multiple cards using stolen or synthetic identities II is now reviewing its card application process to identify potential weaknesses.
Which two elements in the company's application process are potential weaknesses? Choose 2 answers
- A. The company verifies customer contact information using only the information from a customer's credit report
- B. The company calls the applicant to verify contact information il area codes for home, cell, and office phone numbers do not match the address on the application
- C. Applications from geographic areas where high instances of credit card fraud have been reported in the past are subjected to a more detailed review
- D. The company treats credit card applications from all channels (online mail unsolicited etc) the same and subjects them to the same review process
Answer: A,D
NEW QUESTION # 74
A client is introduced to a bank by an intermediary The intermediary is a reputable financial institution that is regulated in a foreign FATF compliant jurisdiction Regulation applicable to the bank requires the bank conduct due diligence with respect to the intermediary's clients Which statement is true in this situation according to the 2012 Wolfsberg Principles on Intermediaries?
- A. The bank may rely on the intermediary to assist in obtaining relevant due diligence information with regard to the intermediary clients
- B. It is not necessary (or a bank to perform due diligence on the intermediary's clients
- C. The bank should perform its own due diligence on the underlying clients and may not rely on the intermediary to assist in obtaining due diligence information on the clients
- D. The bank can rely on the intermediary's due diligence information because it is regulated in a foreign FATF compliant jurisdiction
Answer: A
NEW QUESTION # 75
A law enforcement agent is investigating the owner of a small grocery store thought to be involved in a financial crime scheme II is believed that the store owner is moving illicit proceeds, but it is not clear how it might be happening.
The agent is conducting surveillance on the grocery store and makes the following observations.
* Individuals occasionally enter the store and ask to speak with the owner, who meets with them and takes notes in a notebook he keeps on his person
* Individuals sometimes arrive at the store with small packages or bags and leave without groceries
* The owner periodically visits another store in the neighborhood that acts as an agent for a large international money services business The agent has subpoenaed the bank account and transaction records for the grocery store Transaction patterns do not seem out of the ordinary given the type of business and the area and no suspicious transaction reports have been filed on the account. The store is a sole proprietorship and the owner is not listed as owning or controlling any other business entities.
Based on this information what is the MOST LIKELY conclusion of Ihe law enforcement agent?
- A. The store owner is running an affinity fraud scheme
- B. The store owner is conducting a terrorist financing operation
- C. The store owner is operating as an unlicensed money remitter
- D. The store owner is involved in a tax fraud scheme
Answer: C
NEW QUESTION # 76
One of the tasks for an employee of a U S bank is to administer overseas large value drafts. The employee receives a draft from Country X that is identified as a high-risk and non-cooperative jurisdiction by the FATF According lo the FATF 40 Recommendations, which action should the employee take?
- A. Conduct an investigation according to the money laundering and the financing of terrorism norms/rules enforced and adopted by Country X
- B. Verify the transaction's basic data according to the bank's international operations manual
- C. Request additional documentation to get a deeper understanding about the payer and the origin of the funds
- D. Since the draft was issued in a non-cooperative country block the transaction
Answer: C
NEW QUESTION # 77
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