1|Page
CAFCA Manual Exam Most Recent 2026 Actual
Complete Real Verified Exam Questions And Correct
Answers (Verified Answers) Already Graded A+ /
Newest Exam!!!
Name two important pieces of anti-bribery and corruption
legislation with extra-territorial reach. - Answer-The
Foreign Corrupt Practices Act in the US and The UK
Bribery Act 2010.
State two differences between tax avoidance and tax
evasion. - Answer-Tax avoidance uses legal practices to
reduce taxes owed, whereas tax evasion uses illegal
practices to evade paying taxes owed.
Name an example of politically exposed persons (PEPs). -
Answer-Examples of PEPs include heads of state or
heads of government, senior politicians, senior
government, judicial and military officials, senior
executives of state-owned corporations, and important
political party officials, as well as their families and close
associates. Usually, PEP positions are specified in each
jurisdiction's AML regulation.
,2|Page
State an example of high-risk customers that Fin Techs
might encounter. - Answer-Examples include customers
who sign up using false identities, customers who lie about
the purpose of business relationships, front companies,
companies with complex ownership structures, and
customers linked to organized crime groups.
What is Financial Crime? - Answer-Illegal activities that
typically are economically motivated, such as money
laundering, terrorist financing, sanctions, fraud, bribery,
corruption, and tax evasion
Name the three basic stages of money laundering. -
Answer-Placement, layering, and integration
State the key differences between money laundering and
terrorist financing. - Answer-Terrorist financing uses funds
to support terrorist activities, but the funds are not
necessarily derived from illegal activities. Money
laundering always involves the proceeds of illegal
activities, typically committed by the ultimate beneficiaries
of the funds.
, 3|Page
What are the main types of sanctions and who do they
target? - Answer-Financial, economic, and trade. They
generally target individuals, organizations, and countries.
List the three major reasons people commit fraud, and
what this model is called. - Answer-The three major
reasons are pressure, opportunity, and rationalization. This
model is referred to as the "Fraud Triangle".
Name some jurisdiction risks and red flags in the FinTech
sector. - Answer-Jurisdictions with higher risk include
those with poor AML regulations, high levels of corruption,
inadequate frameworks to prevent financing of terrorism,
and economic sanctions in place. Jurisdictions that are tax
havens and those known to host shell companies are also
high risk.
Why are Fin Techs often considered to be high-risk
companies? - Answer-Because of the lack of face-to-face
encounters and the speed with which a person can access
financial products.
What are some Fin Tech risks and red flags? - Answer-
Non face-to-face customer interactions and onboarding,
CAFCA Manual Exam Most Recent 2026 Actual
Complete Real Verified Exam Questions And Correct
Answers (Verified Answers) Already Graded A+ /
Newest Exam!!!
Name two important pieces of anti-bribery and corruption
legislation with extra-territorial reach. - Answer-The
Foreign Corrupt Practices Act in the US and The UK
Bribery Act 2010.
State two differences between tax avoidance and tax
evasion. - Answer-Tax avoidance uses legal practices to
reduce taxes owed, whereas tax evasion uses illegal
practices to evade paying taxes owed.
Name an example of politically exposed persons (PEPs). -
Answer-Examples of PEPs include heads of state or
heads of government, senior politicians, senior
government, judicial and military officials, senior
executives of state-owned corporations, and important
political party officials, as well as their families and close
associates. Usually, PEP positions are specified in each
jurisdiction's AML regulation.
,2|Page
State an example of high-risk customers that Fin Techs
might encounter. - Answer-Examples include customers
who sign up using false identities, customers who lie about
the purpose of business relationships, front companies,
companies with complex ownership structures, and
customers linked to organized crime groups.
What is Financial Crime? - Answer-Illegal activities that
typically are economically motivated, such as money
laundering, terrorist financing, sanctions, fraud, bribery,
corruption, and tax evasion
Name the three basic stages of money laundering. -
Answer-Placement, layering, and integration
State the key differences between money laundering and
terrorist financing. - Answer-Terrorist financing uses funds
to support terrorist activities, but the funds are not
necessarily derived from illegal activities. Money
laundering always involves the proceeds of illegal
activities, typically committed by the ultimate beneficiaries
of the funds.
, 3|Page
What are the main types of sanctions and who do they
target? - Answer-Financial, economic, and trade. They
generally target individuals, organizations, and countries.
List the three major reasons people commit fraud, and
what this model is called. - Answer-The three major
reasons are pressure, opportunity, and rationalization. This
model is referred to as the "Fraud Triangle".
Name some jurisdiction risks and red flags in the FinTech
sector. - Answer-Jurisdictions with higher risk include
those with poor AML regulations, high levels of corruption,
inadequate frameworks to prevent financing of terrorism,
and economic sanctions in place. Jurisdictions that are tax
havens and those known to host shell companies are also
high risk.
Why are Fin Techs often considered to be high-risk
companies? - Answer-Because of the lack of face-to-face
encounters and the speed with which a person can access
financial products.
What are some Fin Tech risks and red flags? - Answer-
Non face-to-face customer interactions and onboarding,
