Free ACFCS CFCS Exam Questions

Question 1

A new banking customer is flagged as a politically exposed person (PEP) from a developing country. This country is known for graft corruption, political oppression and very recently kleptocracy. You are an officer at a bank responsible lor determining if the bank will do business with this PEP. Given your responsibilities as an officer which course of action is MOST ethical?

A : Contact the country's government regulator notifying them that the PEP is attempting to open an account and inquire as to the PEP's perceived status

B : Contact your personal network of compliance peers to see if they have filed any reports against the PEP in the past

C : Download a law enforcement report about the PEP from WikiLeaks

D : While your employer does not forbid accounts from this country, recommend that enhanced due diligence be performed andthe customer be put on high-risk review

Answer: B

Question 2

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 : Immediately suspend all new customer onboarding activities until the procedures are updated.

B : Implement enhanced monitoring for transactions involving corporate clients with unidentified beneficial owners.

C : Revise the customer onboarding procedures to incorporate requirements for verifying beneficial ownership.

D : Disregard the issue as long as corporate clients pass other due diligence checks.

Answer: C

Question 3

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 : Immediately suspend all new customer onboarding activities until the procedures are updated.

B : Implement enhanced monitoring for transactions involving corporate clients with unidentified beneficial owners.

C : Revise the customer onboarding procedures to incorporate requirements for verifying beneficial ownership.

D : Disregard the issue as long as corporate clients pass other due diligence checks.

Answer: C

Question 4

Phillips Importers LLC. is a shell company owned by Jon Phillips Mr. Phillips is very active in his local church He has convinced a large number of individuals from his church to invest in the Phillips Fund, which guarantees 10% returns.He lakes the money he collects and puts itina bank account for Phillips Importers LLC. He uses that money to market the Phillips Fund to new investors, print statements, pay dividends to his investors and pay some of his personal expenses. Which types of fraud isMr.Phillips committing? Choose 2 answers

A : Pyramid scheme

B : Market manipulation

C : Ponzi scheme

D : Affinity fraud

Answer: C,D

Question 5

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 : Check with the Corporate Registry as this information is public

D : Contact the bank and ask the status of the company

Answer: C