CGSS EXAM QUESTIONS WITH CORRECT
ANSWERS
What is the purpose of sanctions? - CORRECT ANSWER✔✔-Sanctions are
| | | | | | | | | |
measures or actions taken against a target to influence its behavior, policies,
| | | | | | | | | | | |
and/or actions. Sanctions can restrict trade, financial transactions, diplomatic
| | | | | | | | |
relations, and movement. Also referred to as restrictive measures, sanctions can
| | | | | | | | | | |
be specific or general in their implementation and enforcement.
| | | | | | | |
What is sanctions compliance? - CORRECT ANSWER✔✔-Sanctions compliance is
| | | | | | | | |
the act of adhering to the sanctions-related legislation, regulations, rules, and
| | | | | | | | | | |
norms that make up the complex sanctions landscape.
| | | | | | |
Define embargo. - CORRECT ANSWER✔✔-An embargo is an official government
| | | | | | | | | |
action to ban trade or commercial activity with a specific country, sometimes
| | | | | | | | | | | |
involving a specific trade product (e.g., a grain embargo or an oil embargo).
| | | | | | | | | | | |
How do blockades differ from sanctions? - CORRECT ANSWER✔✔-Blockades
| | | | | | | | |
involve the deployment of military resources by land, air, or sea, by a country or
| | | | | | | | | | | | | | |
coalition to prevent the movement of goods or people into or out of a targeted
| | | | | | | | | | | | | | |
country. Sanctions, on the other hand, involve legal actions that are punitive or
| | | | | | | | | | | | |
restrictive.
What is the intended impact of economic sanctions on targets? - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-Economic sanctions, which can include trade sanctions and financial | | | | | | | |
sanctions, are intended to impact targets by limiting the target country's exports,
| | | | | | | | | | | |
restricting its imports, or impeding finance (including reducing aid). Economic
| | | | | | | | | | |
,sanctions apply to property, a term that is very broadly defined to include much
| | | | | | | | | | | | | |
more than money and trade goods. In the US, the terms "property" and
| | | | | | | | | | | |
"property interest" include checks, merchandise, trademarks, annuities, and a
| | | | | | | | | |
broad array of other interests, as defined in US law. This broad definition includes
| | | | | | | | | | | | |
virtually all financial or commercial activity. Although there are sanctions, such as
| | | | | | | | | | | |
travel bans, that do not involve property, economic sanctions have by far the
| | | | | | | | | | | | | |
most implications for sanctions compliance programs.
| | | | |
How do thematic sanctions differ from economic sanctions? - CORRECT
| | | | | | | | | |
ANSWER✔✔-Sanctions can target activities or geography. Thematic sanctions | | | | | | | |
focus on particular issues or concerns that may cut across geographic boundaries,
| | | | | | | | | | |
|such as counter-narcotics sanctions. In contrast, geographic sanctions target
| | | | | | | | |
specific countries or regions, such as North Korea and Crimea. Examples of
| | | | | | | | | | | |
thematic sanctions include the strengthening of human or labor rights, freeing of
| | | | | | | | | | | |
captured citizens, and reversal of land captures. Although the EU has historically
| | | | | | | | | | | |
imposed geographic sanctions, in recent years, it has also adopted thematic
| | | | | | | | | | |
sanctions, including those promoting human rights.
| | | | |
What is a sanctions regime? - CORRECT ANSWER✔✔-A sanctions regime is a set
| | | | | | | | | | | | |
of sanctions that have a common nexus or theme. Sanctions regimes are either
| | | | | | | | | | | | |
referred to by the issuer of the set of sanctions or by the intended purpose of the
| | | | | | | | | | | | | | | |
set of sanctions. For example, the "OFAC sanctions regime" or the "North Korea
| | | | | | | | | | | | | |
sanctions regime." Depending on the context, a sanctions regime may be limited
| | | | | | | | | | | |
to unilateral sanctions or may include multilateral sanctions.
| | | | | | |
What is the role of the International Atomic Energy Agency (IAEA)? - CORRECT
| | | | | | | | | | | | |
ANSWER✔✔-The UN's Treaty on the Non-Proliferation of Nuclear Weapons (NPT) | | | | | | | | |
|established the International Atomic Energy Agency (IAEA) to monitor
| | | | | | | | |
compliance with the terms of the treaty. The IAEA periodically inspects the
| | | | | | | | | | | |
facilities and operations of member nations that have concluded nuclear
| | | | | | | | | |
,safeguards agreements with the Agency. It seeks to build confidence and trust
| | | | | | | | | | | |
among member nations, which helps to prevent the development of fissile
| | | | | | | | | | |
material for military use. | | |
What is the Non-Proliferation Treaty (NPT)? - CORRECT ANSWER✔✔-The UN's
| | | | | | | | | |
Treaty on the Non-Proliferation of Nuclear Weapons, commonly known as the
| | | | | | | | | | |
Non-Proliferation Treaty (NPT), was signed in 1968 and went into effect in March | | | | | | | | | | | | |
1970. The NPT solidified the commitment of signing countries to prevent the
| | | | | | | | | | | |
spread of nuclear weapons. Its goal was to minimize the risk of the use of nuclear
| | | | | | | | | | | | | | |
weapons in conflict, which could result in significant destruction. Likewise, the
| | | | | | | | | | | |
NPT sought to keep the weapons out of the hands of rogue nations and terrorists.
| | | | | | | | | | | | | |
What is the goal of the Kimberley Process Certification Scheme? - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-The Kimberley Process Certification Scheme was established by the | | | | | | | | |
UN in 2003 to establish trade controls over conflict diamonds (i.e., uncut
| | | | | | | | | | | |
diamonds mined in an area of armed conflict and traded illicitly to finance the
| | | | | | | | | | | | | |
fighting). Within the process, governments are required to implement controls on
| | | | | | | | | |
|the import and export of diamonds to certify and control the trade, as well as
| | | | | | | | | | | | | | |
create a documentary trail as to the extraction and refinement processes.
| | | | | | | | | |
What precipitated passage of the Magnitsky Act in the US? - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-In the US, the Magnitsky Act allows for unilateral, global sanctions | | | | | | | | | | |
to be imposed on human rights offenders and corrupt actors. Assets can be
| | | | | | | | | | | | |
frozen and offenders can be barred from entering the US. The act originated from
| | | | | | | | | | | | |
|the mistreatment of attorney and auditor Sergei Magnitsky by Russian officials
| | | | | | | | | | |
while he was in a Moscow prison for investigating fraud related to Russian tax
| | | | | | | | | | | | | |
officials. The law allows the US to sanction foreign government officials involved
| | | | | | | | | | | |
in human rights abuses anywhere in the world, including those found involved
| | | | | | | | | | | |
with the assassination of the Washington Post reporter Jamal Khashoggi in 2018.
| | | | | | | | | | |
, Define the concept of money laundering. - CORRECT ANSWER✔✔-Money
| | | | | | | | |
laundering is the process of concealing or disguising the existence, source,
| | | | | | | | | | |
movement, destination, or illegal application of illicitly derived property or funds
| | | | | | | | | | |
to make them appear legitimate. Money laundering typically involves a three-part
| | | | | | | | | |
|system: placement of funds into a financial system; layering of transactions to
| | | | | | | | | | | |
disguise the source, ownership, and location of the funds; and integration of the
| | | | | | | | | | | | |
funds into society in the form of holdings that appear legitimate. The definition of
| | | | | | | | | | | | |
|money laundering varies in each country where it is recognized as a crime.
| | | | | | | | | | | |
What is the significance of the USA PATRIOT Act to the field of anti-money
| | | | | | | | | | | | | |
laundering? - CORRECT ANSWER✔✔-The Uniting and Strengthening America by
| | | | | | | | |
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
| | | | | | | | | | |
2001 (USA PATRIOT Act) was enacted on October 26, 2001. This historic US law
| | | | | | | | | | | | | |
brought about momentous changes in the anti-money laundering field, including
| | | | | | | | | |
more than 50 amendments to the Bank Secrecy Act. Title III of the act, the
| | | | | | | | | | | | | | |
International Money Laundering Abatement and Anti-Terrorist Financing Act of
| | | | | | | | |
2001, contains most, but not all, of its anti-money laundering-related provisions.
| | | | | | | | | |
How do sanctions relate to terrorist activities? - CORRECT ANSWER✔✔-One of
| | | | | | | | | | |
the purposes of sanctions is to freeze and return resources that have been
| | | | | | | | | | | | |
misappropriated by kleptocrats (i.e., corrupt leaders who exploit the people and
| | | | | | | | | | |
resources of a state for personal gain). As such, sanctions can aim to prevent
| | | | | | | | | | | | | |
corrupt officials from embezzling and from accessing financial services in order to
| | | | | | | | | | | |
illegally launder money taken while they were ruling their countries.
| | | | | | | | |
Are autonomous sanctions only implemented by single governments? If yes, give
| | | | | | | | | | |
an example of a single government that has autonomous sanctions. If not, give an
| | | | | | | | | | | | |
example of a different entity that has autonomous sanctions. - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-No. Autonomous sanctions can be employed by a single entity or | | | | | | | | | | |
government, such as Australia, or a coalition of governments, such as the EU,
| | | | | | | | | | | | |
ANSWERS
What is the purpose of sanctions? - CORRECT ANSWER✔✔-Sanctions are
| | | | | | | | | |
measures or actions taken against a target to influence its behavior, policies,
| | | | | | | | | | | |
and/or actions. Sanctions can restrict trade, financial transactions, diplomatic
| | | | | | | | |
relations, and movement. Also referred to as restrictive measures, sanctions can
| | | | | | | | | | |
be specific or general in their implementation and enforcement.
| | | | | | | |
What is sanctions compliance? - CORRECT ANSWER✔✔-Sanctions compliance is
| | | | | | | | |
the act of adhering to the sanctions-related legislation, regulations, rules, and
| | | | | | | | | | |
norms that make up the complex sanctions landscape.
| | | | | | |
Define embargo. - CORRECT ANSWER✔✔-An embargo is an official government
| | | | | | | | | |
action to ban trade or commercial activity with a specific country, sometimes
| | | | | | | | | | | |
involving a specific trade product (e.g., a grain embargo or an oil embargo).
| | | | | | | | | | | |
How do blockades differ from sanctions? - CORRECT ANSWER✔✔-Blockades
| | | | | | | | |
involve the deployment of military resources by land, air, or sea, by a country or
| | | | | | | | | | | | | | |
coalition to prevent the movement of goods or people into or out of a targeted
| | | | | | | | | | | | | | |
country. Sanctions, on the other hand, involve legal actions that are punitive or
| | | | | | | | | | | | |
restrictive.
What is the intended impact of economic sanctions on targets? - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-Economic sanctions, which can include trade sanctions and financial | | | | | | | |
sanctions, are intended to impact targets by limiting the target country's exports,
| | | | | | | | | | | |
restricting its imports, or impeding finance (including reducing aid). Economic
| | | | | | | | | | |
,sanctions apply to property, a term that is very broadly defined to include much
| | | | | | | | | | | | | |
more than money and trade goods. In the US, the terms "property" and
| | | | | | | | | | | |
"property interest" include checks, merchandise, trademarks, annuities, and a
| | | | | | | | | |
broad array of other interests, as defined in US law. This broad definition includes
| | | | | | | | | | | | |
virtually all financial or commercial activity. Although there are sanctions, such as
| | | | | | | | | | | |
travel bans, that do not involve property, economic sanctions have by far the
| | | | | | | | | | | | | |
most implications for sanctions compliance programs.
| | | | |
How do thematic sanctions differ from economic sanctions? - CORRECT
| | | | | | | | | |
ANSWER✔✔-Sanctions can target activities or geography. Thematic sanctions | | | | | | | |
focus on particular issues or concerns that may cut across geographic boundaries,
| | | | | | | | | | |
|such as counter-narcotics sanctions. In contrast, geographic sanctions target
| | | | | | | | |
specific countries or regions, such as North Korea and Crimea. Examples of
| | | | | | | | | | | |
thematic sanctions include the strengthening of human or labor rights, freeing of
| | | | | | | | | | | |
captured citizens, and reversal of land captures. Although the EU has historically
| | | | | | | | | | | |
imposed geographic sanctions, in recent years, it has also adopted thematic
| | | | | | | | | | |
sanctions, including those promoting human rights.
| | | | |
What is a sanctions regime? - CORRECT ANSWER✔✔-A sanctions regime is a set
| | | | | | | | | | | | |
of sanctions that have a common nexus or theme. Sanctions regimes are either
| | | | | | | | | | | | |
referred to by the issuer of the set of sanctions or by the intended purpose of the
| | | | | | | | | | | | | | | |
set of sanctions. For example, the "OFAC sanctions regime" or the "North Korea
| | | | | | | | | | | | | |
sanctions regime." Depending on the context, a sanctions regime may be limited
| | | | | | | | | | | |
to unilateral sanctions or may include multilateral sanctions.
| | | | | | |
What is the role of the International Atomic Energy Agency (IAEA)? - CORRECT
| | | | | | | | | | | | |
ANSWER✔✔-The UN's Treaty on the Non-Proliferation of Nuclear Weapons (NPT) | | | | | | | | |
|established the International Atomic Energy Agency (IAEA) to monitor
| | | | | | | | |
compliance with the terms of the treaty. The IAEA periodically inspects the
| | | | | | | | | | | |
facilities and operations of member nations that have concluded nuclear
| | | | | | | | | |
,safeguards agreements with the Agency. It seeks to build confidence and trust
| | | | | | | | | | | |
among member nations, which helps to prevent the development of fissile
| | | | | | | | | | |
material for military use. | | |
What is the Non-Proliferation Treaty (NPT)? - CORRECT ANSWER✔✔-The UN's
| | | | | | | | | |
Treaty on the Non-Proliferation of Nuclear Weapons, commonly known as the
| | | | | | | | | | |
Non-Proliferation Treaty (NPT), was signed in 1968 and went into effect in March | | | | | | | | | | | | |
1970. The NPT solidified the commitment of signing countries to prevent the
| | | | | | | | | | | |
spread of nuclear weapons. Its goal was to minimize the risk of the use of nuclear
| | | | | | | | | | | | | | |
weapons in conflict, which could result in significant destruction. Likewise, the
| | | | | | | | | | | |
NPT sought to keep the weapons out of the hands of rogue nations and terrorists.
| | | | | | | | | | | | | |
What is the goal of the Kimberley Process Certification Scheme? - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-The Kimberley Process Certification Scheme was established by the | | | | | | | | |
UN in 2003 to establish trade controls over conflict diamonds (i.e., uncut
| | | | | | | | | | | |
diamonds mined in an area of armed conflict and traded illicitly to finance the
| | | | | | | | | | | | | |
fighting). Within the process, governments are required to implement controls on
| | | | | | | | | |
|the import and export of diamonds to certify and control the trade, as well as
| | | | | | | | | | | | | | |
create a documentary trail as to the extraction and refinement processes.
| | | | | | | | | |
What precipitated passage of the Magnitsky Act in the US? - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-In the US, the Magnitsky Act allows for unilateral, global sanctions | | | | | | | | | | |
to be imposed on human rights offenders and corrupt actors. Assets can be
| | | | | | | | | | | | |
frozen and offenders can be barred from entering the US. The act originated from
| | | | | | | | | | | | |
|the mistreatment of attorney and auditor Sergei Magnitsky by Russian officials
| | | | | | | | | | |
while he was in a Moscow prison for investigating fraud related to Russian tax
| | | | | | | | | | | | | |
officials. The law allows the US to sanction foreign government officials involved
| | | | | | | | | | | |
in human rights abuses anywhere in the world, including those found involved
| | | | | | | | | | | |
with the assassination of the Washington Post reporter Jamal Khashoggi in 2018.
| | | | | | | | | | |
, Define the concept of money laundering. - CORRECT ANSWER✔✔-Money
| | | | | | | | |
laundering is the process of concealing or disguising the existence, source,
| | | | | | | | | | |
movement, destination, or illegal application of illicitly derived property or funds
| | | | | | | | | | |
to make them appear legitimate. Money laundering typically involves a three-part
| | | | | | | | | |
|system: placement of funds into a financial system; layering of transactions to
| | | | | | | | | | | |
disguise the source, ownership, and location of the funds; and integration of the
| | | | | | | | | | | | |
funds into society in the form of holdings that appear legitimate. The definition of
| | | | | | | | | | | | |
|money laundering varies in each country where it is recognized as a crime.
| | | | | | | | | | | |
What is the significance of the USA PATRIOT Act to the field of anti-money
| | | | | | | | | | | | | |
laundering? - CORRECT ANSWER✔✔-The Uniting and Strengthening America by
| | | | | | | | |
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
| | | | | | | | | | |
2001 (USA PATRIOT Act) was enacted on October 26, 2001. This historic US law
| | | | | | | | | | | | | |
brought about momentous changes in the anti-money laundering field, including
| | | | | | | | | |
more than 50 amendments to the Bank Secrecy Act. Title III of the act, the
| | | | | | | | | | | | | | |
International Money Laundering Abatement and Anti-Terrorist Financing Act of
| | | | | | | | |
2001, contains most, but not all, of its anti-money laundering-related provisions.
| | | | | | | | | |
How do sanctions relate to terrorist activities? - CORRECT ANSWER✔✔-One of
| | | | | | | | | | |
the purposes of sanctions is to freeze and return resources that have been
| | | | | | | | | | | | |
misappropriated by kleptocrats (i.e., corrupt leaders who exploit the people and
| | | | | | | | | | |
resources of a state for personal gain). As such, sanctions can aim to prevent
| | | | | | | | | | | | | |
corrupt officials from embezzling and from accessing financial services in order to
| | | | | | | | | | | |
illegally launder money taken while they were ruling their countries.
| | | | | | | | |
Are autonomous sanctions only implemented by single governments? If yes, give
| | | | | | | | | | |
an example of a single government that has autonomous sanctions. If not, give an
| | | | | | | | | | | | |
example of a different entity that has autonomous sanctions. - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-No. Autonomous sanctions can be employed by a single entity or | | | | | | | | | | |
government, such as Australia, or a coalition of governments, such as the EU,
| | | | | | | | | | | | |
