CERTIFIED AML AND FRAUD PROFESSIONAL
EXAM 2026 FULL PRACTICE QUESTIONS AND
ANSWERS
◉ What are legal services sector risks? Answer: Risks associated
with legal professionals potentially being used to launder money.
◉ What are trust and company service provider risks? Answer:
Risks linked to the services provided by trust and company service
providers that may be exploited for money laundering.
◉ What are high-risk business sectors for money laundering?
Answer: Sectors that are particularly vulnerable to money
laundering, including gaming, real estate, and DNFBPs.
◉ What are high-value asset risks? Answer: Risks associated with
the laundering of funds through the acquisition of high-value assets.
◉ What are the risks associated with import/export businesses?
Answer: Risks that arise from the potential for money laundering
through international trade.
,◉ What are free-trade zones risks? Answer: Risks related to the
potential for money laundering activities in areas with reduced
customs regulations.
◉ What are alternative remittance systems risks? Answer: Risks
associated with informal money transfer systems that may facilitate
money laundering.
◉ What are charity and NGO risks? Answer: Risks that charities and
non-governmental organizations face regarding the potential misuse
of funds for money laundering.
◉ What are military organization and goods risks? Answer: Risks
related to the potential for laundering money through military
contracts and goods.
◉ What are the risks of providing financial services to embassies,
foreign consulates, and missions? Answer: Risks associated with the
financial transactions of diplomatic entities that may be exploited
for money laundering.
◉ What is the purpose of the Financial Action Task Force (FATF)?
Answer: To develop policies to combat money laundering and
terrorist financing.
,◉ What are the FATF 40 Recommendations? Answer: A set of
guidelines established by the FATF to combat money laundering and
terrorist financing.
◉ What is the significance of FATF mutual evaluations? Answer:
They assess the effectiveness of countries' measures to combat
money laundering and terrorist financing.
◉ What do FATF Recommendations 1-8 focus on? Answer: They
address the legal framework and institutional measures necessary
for effective anti-money laundering (AML) and counter-terrorist
financing (CFT).
◉ What is the focus of FATF Recommendations 9-23? Answer: They
cover the measures that financial institutions and designated non-
financial businesses and professions should implement.
◉ What do FATF Recommendations 24-40 pertain to? Answer: They
relate to the international cooperation and measures to enhance the
effectiveness of AML/CFT efforts.
◉ What are FATF high-risk and noncooperative jurisdictions?
Answer: Countries that do not comply with FATF standards and pose
a risk to the international financial system.
, ◉ What is the role of the Egmont Group in AFC guidance? Answer:
To facilitate international cooperation and information exchange
among financial intelligence units.
◉ What is the significance of the case study on the 1999 Convention
and UNSC resolutions for CFT? Answer: It illustrates the
international legal framework for combating terrorist financing.
◉ What guidance does the World Bank and International Monetary
Fund provide regarding AFC? Answer: They offer frameworks and
recommendations to strengthen financial systems against money
laundering and terrorist financing.
◉ What is the purpose of the Basel Committee on Banking
Supervision's AFC guidance? Answer: To enhance the banking
sector's resilience against money laundering and terrorist financing
risks.
◉ What does the G-20 Anti-Corruption Working Group focus on in
terms of AFC? Answer: It aims to promote international cooperation
and effective measures to combat corruption and related financial
crimes.
◉ What is the role of Transparency International in AFC guidance?
Answer: To advocate for transparency and integrity in financial
systems to prevent corruption and money laundering.
EXAM 2026 FULL PRACTICE QUESTIONS AND
ANSWERS
◉ What are legal services sector risks? Answer: Risks associated
with legal professionals potentially being used to launder money.
◉ What are trust and company service provider risks? Answer:
Risks linked to the services provided by trust and company service
providers that may be exploited for money laundering.
◉ What are high-risk business sectors for money laundering?
Answer: Sectors that are particularly vulnerable to money
laundering, including gaming, real estate, and DNFBPs.
◉ What are high-value asset risks? Answer: Risks associated with
the laundering of funds through the acquisition of high-value assets.
◉ What are the risks associated with import/export businesses?
Answer: Risks that arise from the potential for money laundering
through international trade.
,◉ What are free-trade zones risks? Answer: Risks related to the
potential for money laundering activities in areas with reduced
customs regulations.
◉ What are alternative remittance systems risks? Answer: Risks
associated with informal money transfer systems that may facilitate
money laundering.
◉ What are charity and NGO risks? Answer: Risks that charities and
non-governmental organizations face regarding the potential misuse
of funds for money laundering.
◉ What are military organization and goods risks? Answer: Risks
related to the potential for laundering money through military
contracts and goods.
◉ What are the risks of providing financial services to embassies,
foreign consulates, and missions? Answer: Risks associated with the
financial transactions of diplomatic entities that may be exploited
for money laundering.
◉ What is the purpose of the Financial Action Task Force (FATF)?
Answer: To develop policies to combat money laundering and
terrorist financing.
,◉ What are the FATF 40 Recommendations? Answer: A set of
guidelines established by the FATF to combat money laundering and
terrorist financing.
◉ What is the significance of FATF mutual evaluations? Answer:
They assess the effectiveness of countries' measures to combat
money laundering and terrorist financing.
◉ What do FATF Recommendations 1-8 focus on? Answer: They
address the legal framework and institutional measures necessary
for effective anti-money laundering (AML) and counter-terrorist
financing (CFT).
◉ What is the focus of FATF Recommendations 9-23? Answer: They
cover the measures that financial institutions and designated non-
financial businesses and professions should implement.
◉ What do FATF Recommendations 24-40 pertain to? Answer: They
relate to the international cooperation and measures to enhance the
effectiveness of AML/CFT efforts.
◉ What are FATF high-risk and noncooperative jurisdictions?
Answer: Countries that do not comply with FATF standards and pose
a risk to the international financial system.
, ◉ What is the role of the Egmont Group in AFC guidance? Answer:
To facilitate international cooperation and information exchange
among financial intelligence units.
◉ What is the significance of the case study on the 1999 Convention
and UNSC resolutions for CFT? Answer: It illustrates the
international legal framework for combating terrorist financing.
◉ What guidance does the World Bank and International Monetary
Fund provide regarding AFC? Answer: They offer frameworks and
recommendations to strengthen financial systems against money
laundering and terrorist financing.
◉ What is the purpose of the Basel Committee on Banking
Supervision's AFC guidance? Answer: To enhance the banking
sector's resilience against money laundering and terrorist financing
risks.
◉ What does the G-20 Anti-Corruption Working Group focus on in
terms of AFC? Answer: It aims to promote international cooperation
and effective measures to combat corruption and related financial
crimes.
◉ What is the role of Transparency International in AFC guidance?
Answer: To advocate for transparency and integrity in financial
systems to prevent corruption and money laundering.
