CGSS COMPREHENSIVE TEST SCRIPT
2026 QUESTIONS WITH SOLUTIONS
100% CORRECT.
⚫ Which of the following best describes the Financial Action Task
Force's Mutual Evaluation Reports? Answer: Reports that evaluate a
country's compliance with FATF's recommendations
⚫ A US consultant is in Beijing, China working on a project for a
major Chinese financial institution, and is asked how to set up a
sanctions compliance program to engage in trade-related transactions
with the country of Iran. The US consultant drafts a sanctions
compliance framework and delivers it to the client. The consultant is
most likely engaged in:. Answer: Facilitation.
KEY TAKEAWAYS • Facilitation is a concept that applies to US
persons not directly engaged in sanctioned activity. • Facilitation is a
broad concept that may encompass a variety of activities, such as
overseeing the transfer of equipment for a non-US person to
sanctioned locations. • US persons are prohibited from making
business decisions on behalf of non-US persons for projects in
sanctioned countries. • Providing technical or advisory expertise for
operations in sanctioned countries may be prohibited as facilitation.
⚫ Which of the following describes multiple countries working
together to block trade and issue embargoes against another country?
Answer: Multilateral sanctions
,⚫ Which of the following is a government's exercise of its authority
beyond its geographical boundaries? Answer: Extraterritoriality
⚫ An SDN deposits US funds into his bank account in Germany
with a German bank. The German bank maintains a nostro account
with a US financial institution in New York. The funds may be
subject to forfeiture according to which 2001 US law? Answer: The
USA PATRIOT Act : BSA
Section 311 of the USA PATRIOT Act directs the Treasury to
designate a financial institution or jurisdiction as being of "primary
money laundering concern" based on numerous jurisdictional and
institutional factors, including the extent to which the institution is
used to facilitate or promote money laundering
an account that a bank keeps for itself in a bank in another country,
usually in that country's currency
⚫ Which of the following is the most common type of sanctions
imposed by one nation upon another?
Trade. Answer: Trade
mposing trade sanctions that limit the target country's exports or
restrict its imports
⚫ During which period did governments impose sanctions more
often than in prior decades? Answer: Cold War
, During the Cold War, governments imposed sanctions more often
than in prior decades.
The United States, as one of the two superpowers, imposed sanctions
significantly more than any other country. It was not until the 1990s,
after the Cold War ended, that unilateral sanctions began to be
replaced by 1 Lance Davis and Stanley Engerman, "History Lessons:
Sanctions: Neither War nor Peace," The Journal of Economic
Perspectives 17, no. 2 (2003), 189. 2 Davis and Engerman, 189.
CGSS Version 1.57 Page 9 multilateral, intergovernmental coalitions
⚫ The bombing of which site provoked questions about whether
sanctions were an alternative to war or might hasten military force.
Answer: Pearl Harbor
US trade sanctions against Japan factored into the Japanese decision
to enter World War II and attack Pearl Harbor. This situation
provoked questions regarding whether sanctions were an alternative
to war, or whether they instead might rush nations to use military
force. After the conclusion of World War II, the United Nations was
formed in 1945, and sanctions were formally recognized within the
charter as a foreign policy tool.
⚫ Which of the following has not been used as an official reason for
imposing sanctions? Answer: NOT
Raising money for humanitarian relief
Correct
2026 QUESTIONS WITH SOLUTIONS
100% CORRECT.
⚫ Which of the following best describes the Financial Action Task
Force's Mutual Evaluation Reports? Answer: Reports that evaluate a
country's compliance with FATF's recommendations
⚫ A US consultant is in Beijing, China working on a project for a
major Chinese financial institution, and is asked how to set up a
sanctions compliance program to engage in trade-related transactions
with the country of Iran. The US consultant drafts a sanctions
compliance framework and delivers it to the client. The consultant is
most likely engaged in:. Answer: Facilitation.
KEY TAKEAWAYS • Facilitation is a concept that applies to US
persons not directly engaged in sanctioned activity. • Facilitation is a
broad concept that may encompass a variety of activities, such as
overseeing the transfer of equipment for a non-US person to
sanctioned locations. • US persons are prohibited from making
business decisions on behalf of non-US persons for projects in
sanctioned countries. • Providing technical or advisory expertise for
operations in sanctioned countries may be prohibited as facilitation.
⚫ Which of the following describes multiple countries working
together to block trade and issue embargoes against another country?
Answer: Multilateral sanctions
,⚫ Which of the following is a government's exercise of its authority
beyond its geographical boundaries? Answer: Extraterritoriality
⚫ An SDN deposits US funds into his bank account in Germany
with a German bank. The German bank maintains a nostro account
with a US financial institution in New York. The funds may be
subject to forfeiture according to which 2001 US law? Answer: The
USA PATRIOT Act : BSA
Section 311 of the USA PATRIOT Act directs the Treasury to
designate a financial institution or jurisdiction as being of "primary
money laundering concern" based on numerous jurisdictional and
institutional factors, including the extent to which the institution is
used to facilitate or promote money laundering
an account that a bank keeps for itself in a bank in another country,
usually in that country's currency
⚫ Which of the following is the most common type of sanctions
imposed by one nation upon another?
Trade. Answer: Trade
mposing trade sanctions that limit the target country's exports or
restrict its imports
⚫ During which period did governments impose sanctions more
often than in prior decades? Answer: Cold War
, During the Cold War, governments imposed sanctions more often
than in prior decades.
The United States, as one of the two superpowers, imposed sanctions
significantly more than any other country. It was not until the 1990s,
after the Cold War ended, that unilateral sanctions began to be
replaced by 1 Lance Davis and Stanley Engerman, "History Lessons:
Sanctions: Neither War nor Peace," The Journal of Economic
Perspectives 17, no. 2 (2003), 189. 2 Davis and Engerman, 189.
CGSS Version 1.57 Page 9 multilateral, intergovernmental coalitions
⚫ The bombing of which site provoked questions about whether
sanctions were an alternative to war or might hasten military force.
Answer: Pearl Harbor
US trade sanctions against Japan factored into the Japanese decision
to enter World War II and attack Pearl Harbor. This situation
provoked questions regarding whether sanctions were an alternative
to war, or whether they instead might rush nations to use military
force. After the conclusion of World War II, the United Nations was
formed in 1945, and sanctions were formally recognized within the
charter as a foreign policy tool.
⚫ Which of the following has not been used as an official reason for
imposing sanctions? Answer: NOT
Raising money for humanitarian relief
Correct
