ASSOCIATION OF CERTIFIED SANCTIONS SPECIALISTS (ACSS)
EXAM LATEST QUESTIONS AND CORRECT ANSWERS GRADE A
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1. Which U.S. agency administers and enforces economic sanctions?
A) Department of Commerce
B) Department of the Treasury - OFAC
C) Department of State
D) Department of Justice
Answer: B
Explanation: The Office of Foreign Assets Control (OFAC) within the U.S. Department of the Treasury
administers and enforces economic sanctions.
2. What is the primary purpose of economic sanctions?
A) To punish countries
B) To achieve foreign policy and national security goals
C) To protect domestic industries
D) To regulate international trade
Answer: B
Explanation: Economic sanctions are tools to achieve foreign policy and national security objectives, not
primarily for punishment or trade regulation.
3. Which type of sanctions program targets specific individuals or entities?
A) Comprehensive sanctions
B) Sectoral sanctions
C) Targeted sanctions
D) Territorial sanctions
,Answer: C
Explanation: Targeted sanctions (also called "smart sanctions") focus on specific individuals, entities, or
activities rather than entire countries.
4. What does SDN stand for in OFAC terminology?
A) Specially Designated National
B) Specially Designated Narcotics trafficker
C) Specially Designated Non-compliant
D) Specially Designated Network
Answer: A
Explanation: SDN stands for Specially Designated National, individuals or entities blocked under OFAC
sanctions programs.
5. Which OFAC list includes entities that are 50% or more owned by SDNs?
A) SDN List
B) Consolidated Screening List
C) Both A and B
D) Neither - ownership is separately determined
Answer: A
Explanation: Entities that are 50% or more owned by SDNs are also considered SDNs and appear on the
SDN List.
6. What is the minimum due diligence required for sanctions screening?
A) Customer screening only
B) Transaction screening only
C) Both customer and transaction screening
D) No screening required for small transactions
,Answer: C
Explanation: Effective sanctions compliance requires both customer screening (at onboarding) and
ongoing transaction screening.
7. Which EU regulation establishes the framework for EU sanctions implementation?
A) EU Regulation 428/2009
B) EU Regulation 2016/679
C) EU Regulation 267/2012
D) Council Regulation (EC) No 881/2002
Answer: C
Explanation: While multiple regulations exist, EU Regulation 267/2012 establishes the framework for
restrictive measures against Iran.
8. What does "de-risking" refer to in sanctions compliance?
A) Removing risk from transactions
B) Avoiding business with high-risk jurisdictions
C) Terminating relationships to avoid sanctions risk
D) Reducing compliance program costs
Answer: C
Explanation: De-risking refers to financial institutions terminating or restricting business relationships to
avoid perceived sanctions compliance risks.
9. Which UN body is primarily responsible for imposing international sanctions?
A) UN General Assembly
B) UN Security Council
C) International Court of Justice
D) UN Economic and Social Council
, Answer: B
Explanation: The UN Security Council has primary responsibility for imposing international sanctions
under Chapter VII of the UN Charter.
10. What is the purpose of a sanctions compliance program (SCP)?
A) To avoid all sanctions violations
B) To detect and prevent violations
C) To minimize penalties for violations
D) All of the above
Answer: D
Explanation: An effective SCP aims to prevent violations, detect them if they occur, and can mitigate
penalties if violations happen despite the program.
11. Which OFAC license allows transactions that would otherwise be prohibited?
A) General License
B) Specific License
C) Both A and B
D) Neither - all prohibited transactions are illegal
Answer: C
Explanation: OFAC issues both General Licenses (for categories of transactions) and Specific Licenses (for
specific transactions or parties).
12. What is the "50 Percent Rule" in OFAC sanctions?
A) 50% of ownership triggers sanctions
B) Entities owned 50% or more by SDNs are blocked
C) 50% of transactions must be screened
D) 50% penalty reduction for voluntary disclosure
EXAM LATEST QUESTIONS AND CORRECT ANSWERS GRADE A
=======================================================================
1. Which U.S. agency administers and enforces economic sanctions?
A) Department of Commerce
B) Department of the Treasury - OFAC
C) Department of State
D) Department of Justice
Answer: B
Explanation: The Office of Foreign Assets Control (OFAC) within the U.S. Department of the Treasury
administers and enforces economic sanctions.
2. What is the primary purpose of economic sanctions?
A) To punish countries
B) To achieve foreign policy and national security goals
C) To protect domestic industries
D) To regulate international trade
Answer: B
Explanation: Economic sanctions are tools to achieve foreign policy and national security objectives, not
primarily for punishment or trade regulation.
3. Which type of sanctions program targets specific individuals or entities?
A) Comprehensive sanctions
B) Sectoral sanctions
C) Targeted sanctions
D) Territorial sanctions
,Answer: C
Explanation: Targeted sanctions (also called "smart sanctions") focus on specific individuals, entities, or
activities rather than entire countries.
4. What does SDN stand for in OFAC terminology?
A) Specially Designated National
B) Specially Designated Narcotics trafficker
C) Specially Designated Non-compliant
D) Specially Designated Network
Answer: A
Explanation: SDN stands for Specially Designated National, individuals or entities blocked under OFAC
sanctions programs.
5. Which OFAC list includes entities that are 50% or more owned by SDNs?
A) SDN List
B) Consolidated Screening List
C) Both A and B
D) Neither - ownership is separately determined
Answer: A
Explanation: Entities that are 50% or more owned by SDNs are also considered SDNs and appear on the
SDN List.
6. What is the minimum due diligence required for sanctions screening?
A) Customer screening only
B) Transaction screening only
C) Both customer and transaction screening
D) No screening required for small transactions
,Answer: C
Explanation: Effective sanctions compliance requires both customer screening (at onboarding) and
ongoing transaction screening.
7. Which EU regulation establishes the framework for EU sanctions implementation?
A) EU Regulation 428/2009
B) EU Regulation 2016/679
C) EU Regulation 267/2012
D) Council Regulation (EC) No 881/2002
Answer: C
Explanation: While multiple regulations exist, EU Regulation 267/2012 establishes the framework for
restrictive measures against Iran.
8. What does "de-risking" refer to in sanctions compliance?
A) Removing risk from transactions
B) Avoiding business with high-risk jurisdictions
C) Terminating relationships to avoid sanctions risk
D) Reducing compliance program costs
Answer: C
Explanation: De-risking refers to financial institutions terminating or restricting business relationships to
avoid perceived sanctions compliance risks.
9. Which UN body is primarily responsible for imposing international sanctions?
A) UN General Assembly
B) UN Security Council
C) International Court of Justice
D) UN Economic and Social Council
, Answer: B
Explanation: The UN Security Council has primary responsibility for imposing international sanctions
under Chapter VII of the UN Charter.
10. What is the purpose of a sanctions compliance program (SCP)?
A) To avoid all sanctions violations
B) To detect and prevent violations
C) To minimize penalties for violations
D) All of the above
Answer: D
Explanation: An effective SCP aims to prevent violations, detect them if they occur, and can mitigate
penalties if violations happen despite the program.
11. Which OFAC license allows transactions that would otherwise be prohibited?
A) General License
B) Specific License
C) Both A and B
D) Neither - all prohibited transactions are illegal
Answer: C
Explanation: OFAC issues both General Licenses (for categories of transactions) and Specific Licenses (for
specific transactions or parties).
12. What is the "50 Percent Rule" in OFAC sanctions?
A) 50% of ownership triggers sanctions
B) Entities owned 50% or more by SDNs are blocked
C) 50% of transactions must be screened
D) 50% penalty reduction for voluntary disclosure
