CAFCA EXAM CERTIFIED AML FINTECH
COMPLIANCE ASSOCIATE EXAM 2026 LATEST
UPDATE QUESTIONS AND CORRECT
VERIFIED ANSERS ALREADY GRADED A+
Why is it crucial for CDD programs to evolve along with organizational
growth? - ans-To accommodate new customer types, volumes, and
risks, and to prevent delays in the onboarding process.
What is the purpose of controls for transaction monitoring? - ans-The
purpose of having controls for transaction monitoring is to
manage the financial crime risk to an organization, in a risk-based
approach, these controls are appropriate, specific, and risk-
based.
What factors do transaction monitoring scenarios analyze? - ans-
Transaction monitoring scenarios analyze factors such as industry
size, jurisdiction, and customer activity when setting alerts.
What does it mean to "use contextual information" when clearing a
transaction monitoring alert? - ans-To consider the nature of the rule
that flagged the transaction, as well as the wider customer profile
and transaction history.
Name red flags that could point to corporate money laundering through
shell companies. - ans-Shell companies exist only on paper with no
active business operations. Red flags include: companies with no
public profile, no clear business, and a poorly populated or
nonexistent website.
Name red flags that arise during payment screening that might point to
sanctions violations. - ans-Payments to a region that borders a
sanctioned jurisdiction, payments with references linked to
sanctions, payments to charities or companies operating in
, sanctioned countries, payments for high-risk or dual-use goods,
and customers or counterparties with sanctioned ownership.
What is the difference between anti-fraud and AML monitoring? - ans-
Anti-fraud monitoring ultimately aims to reduce an organization's
fraud losses. AML efforts are done mainly to comply with
regulations and ensure that an organization is not used for
money laundering.
Why is it important to scale an organization's transaction monitoring
program along with its growth? - ans-To monitor evolving and new risks,
detect financial crime activity among new customers, products, and
geographies, and quickly resolve open alerts.
What is meant by "financial inclusion" in the context of AML obligations? -
ans-Ensuring that legitimate customers have access to financial systems,
even when they can't provide all of the information typically required.
Organizations must balance AML risks with support for financial inclusion,
which might be required by law.
In what ways can a FinTech take a risk-based approach to balance
customer risk with customer experience at onboarding? - ans-Focusing
EDD (Enhanced Due Diligence) measures on customers who pose specific
risks; using technology to speed up the onboarding process; allowing
customers who are considered low-risk to onboard with no intervention;
carefully designing onboarding flow, and providing positive customer
support.
What roles does network analysis play in AML investigations? - ans-
Network analysis is an investigation tool that searches for common traits
among account holders and activities that could link them as part of a
network. Some organizations build internal network analysis tools,
whereas others use third-party investigative software.
Define "open source intelligence." - ans-The practice of collecting
information from published or otherwise publicly available sources, such
COMPLIANCE ASSOCIATE EXAM 2026 LATEST
UPDATE QUESTIONS AND CORRECT
VERIFIED ANSERS ALREADY GRADED A+
Why is it crucial for CDD programs to evolve along with organizational
growth? - ans-To accommodate new customer types, volumes, and
risks, and to prevent delays in the onboarding process.
What is the purpose of controls for transaction monitoring? - ans-The
purpose of having controls for transaction monitoring is to
manage the financial crime risk to an organization, in a risk-based
approach, these controls are appropriate, specific, and risk-
based.
What factors do transaction monitoring scenarios analyze? - ans-
Transaction monitoring scenarios analyze factors such as industry
size, jurisdiction, and customer activity when setting alerts.
What does it mean to "use contextual information" when clearing a
transaction monitoring alert? - ans-To consider the nature of the rule
that flagged the transaction, as well as the wider customer profile
and transaction history.
Name red flags that could point to corporate money laundering through
shell companies. - ans-Shell companies exist only on paper with no
active business operations. Red flags include: companies with no
public profile, no clear business, and a poorly populated or
nonexistent website.
Name red flags that arise during payment screening that might point to
sanctions violations. - ans-Payments to a region that borders a
sanctioned jurisdiction, payments with references linked to
sanctions, payments to charities or companies operating in
, sanctioned countries, payments for high-risk or dual-use goods,
and customers or counterparties with sanctioned ownership.
What is the difference between anti-fraud and AML monitoring? - ans-
Anti-fraud monitoring ultimately aims to reduce an organization's
fraud losses. AML efforts are done mainly to comply with
regulations and ensure that an organization is not used for
money laundering.
Why is it important to scale an organization's transaction monitoring
program along with its growth? - ans-To monitor evolving and new risks,
detect financial crime activity among new customers, products, and
geographies, and quickly resolve open alerts.
What is meant by "financial inclusion" in the context of AML obligations? -
ans-Ensuring that legitimate customers have access to financial systems,
even when they can't provide all of the information typically required.
Organizations must balance AML risks with support for financial inclusion,
which might be required by law.
In what ways can a FinTech take a risk-based approach to balance
customer risk with customer experience at onboarding? - ans-Focusing
EDD (Enhanced Due Diligence) measures on customers who pose specific
risks; using technology to speed up the onboarding process; allowing
customers who are considered low-risk to onboard with no intervention;
carefully designing onboarding flow, and providing positive customer
support.
What roles does network analysis play in AML investigations? - ans-
Network analysis is an investigation tool that searches for common traits
among account holders and activities that could link them as part of a
network. Some organizations build internal network analysis tools,
whereas others use third-party investigative software.
Define "open source intelligence." - ans-The practice of collecting
information from published or otherwise publicly available sources, such
