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Certified AML FinTech Compliance Associate
(CAFCA) 2025 — Complete Study Guide, Practice
Exam, and Certification Requirements
Prepare for the Certified AML FinTech Compliance Associate (CAFCA) 2025 with the latest
study guide, exam preparation materials, and practice test questions. Learn essential skills
in anti-money laundering, fintech regulations, and compliance risk management to earn
your CAFCA certification and boost your career in financial technology compliance.
• Certified AML FinTech Compliance Associate 2025
• CAFCA exam study guide
• CAFCA certification requirements
• AML fintech compliance certification
•
Which of the following is a red flag of fraud? - ANSWER-A sense of urgency
Which of the following is a feature of terrorist financing? - ANSWER-The money is not necessarily
derived from illicit proceeds
Which of the following is the primary purpose of money laundering? - ANSWER-To make criminally
derived property or funds appear to be legitimate
Which of the following is a negative impact of financial crime? - ANSWER-Financial crime jeopardizes the
soundness of financial institutions
Which of the following is NOT a primary risk concern of KYC professionals? - ANSWER-Credit risk
,2|Page
What is a shell company? - ANSWER-A company that, at the time of incorporation, has no significant
assets or operations
Which of the following has higher geographic risks for FinTechs? - ANSWER-A customer with beneficial
owners based in a higher risk jurisdiction.
Why might a FinTech outsource their AML controls? - ANSWER-FinTechs might lack the needed in-house
expertise.
What is a characteristic of the FinTech sector, relevant to financial crime? - ANSWER-FinTechs often
meet customers non-face-to-face for onboarding.
What concerns did the whistleblower's report raise about Revolut's program? - ANSWER-Revolut's AML
checks were not sufficient to successfully identify potential criminals.
A customer's account is suspended due to a suspicious activity alert and the customer is demanding an
immediate explanation. Who is responsible for how the response is handled? - ANSWER-Money
Laundering Reporting Officer
Which information is most useful to a Money Laundering Reporting Officer (MLRO) when presenting
updates, findings, and trends to members of an institution's board and upper management? - ANSWER-
Overall number of SARs/STRs submitted to a law enforcement agency
A new customer appears to be structuring transactions to stay under the account threshold. Which is
the next best step in the transaction monitoring and investigation process? - ANSWER-Conduct
additional research into the nature of the account and transactions.
Suspicious activity reporting is designed to: - ANSWER-alert law enforcement to potential instances of
money laundering or terrorist financing.
,3|Page
Launching an AML investigation with a certain belief in mind, such as the belief money laundering is
occurring, and selecting specific pieces of information to support that belief while ignoring data that
supports a counter view is known as what type of bias? - ANSWER-Confirmation bias
In addition to customer name, which supplemental independent data element, if accidentally exposed,
would require a breach notification to be sent to a single customer? - ANSWER-Driver's license or
identity card image
Which is a benefit of digital identification verification for anti-financial crime purposes? - ANSWER-
Improves customer experience.
Which of the following is a sign of a jurisdiction that facilitates tax evasion? - ANSWER-They levy low or
minimal taxation on the income of non-residents, and provide tax advantages to non-residents
True or False: Some industries are at higher risk for bribery than others, especially those in which
commercial success is driven by getting approval, authority, or contracts from government entities. -
ANSWER-True
Based on the YouTrip fraud case, which of the following statements reflects fraud risk in FinTechs? -
ANSWER-FinTechs are at risk of fraud when they do not have appropriate controls in place.
Why are charitable organizations sometimes part of tax-evasion schemes? - ANSWER-Donations to a
charitable organization typically are tax-deductible
What is an ultimate beneficial owner? - ANSWER-A natural person who owns a portion of a company
Why is a risk-based approach important? - ANSWER-So you can apply appropriate scrutiny based on the
risk presented to you by a given customer
Who usually makes the recommendation to close an account? - ANSWER-SAR Review Team
Which is not a good rule for the second line of defense? - ANSWER-Attach compensation to profitability
, 4|Page
The money laundering reporting officer (MLRO) (or equivalent role) has personal liability within their
organization. - ANSWER-TRUE
Which of the following statements is accurate concerning KYC photo identification solutions, as
demonstrated by the N26 case? - ANSWER-KYC photo identification solutions are not comprehensive if
they cannot detect fake IDs.
What is the main purpose of transaction monitoring controls? - ANSWER-Manage financial risk
What is one difference between transaction monitoring and name screening? - ANSWER-Name
screening is performed prior to onboarding
United Nations sanctions are an example of what type of sanctions regime? - ANSWER-Multilateral
sanctions
As an AML investigator it is your job to: - ANSWER-Investigate and report facts
Which of the following statements about customer due diligence is correct? - ANSWER-The country of
residence and nationality of your customer will be risk-rated
What is "tipping off"? - ANSWER-Telling the subject of a SAR, or anyone who does not need to know,
that a SAR has been filed
Why is it important to filter the information you have gathered through your research? - ANSWER-To
bring together the most relevant and important pieces of information
Why is it important to document your research? - ANSWER-Because a search performed today might
turn up different results in several months' time, and so the process of your searches can be evaluated
for soundness
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
Certified AML FinTech Compliance Associate
(CAFCA) 2025 — Complete Study Guide, Practice
Exam, and Certification Requirements
Prepare for the Certified AML FinTech Compliance Associate (CAFCA) 2025 with the latest
study guide, exam preparation materials, and practice test questions. Learn essential skills
in anti-money laundering, fintech regulations, and compliance risk management to earn
your CAFCA certification and boost your career in financial technology compliance.
• Certified AML FinTech Compliance Associate 2025
• CAFCA exam study guide
• CAFCA certification requirements
• AML fintech compliance certification
•
Which of the following is a red flag of fraud? - ANSWER-A sense of urgency
Which of the following is a feature of terrorist financing? - ANSWER-The money is not necessarily
derived from illicit proceeds
Which of the following is the primary purpose of money laundering? - ANSWER-To make criminally
derived property or funds appear to be legitimate
Which of the following is a negative impact of financial crime? - ANSWER-Financial crime jeopardizes the
soundness of financial institutions
Which of the following is NOT a primary risk concern of KYC professionals? - ANSWER-Credit risk
,2|Page
What is a shell company? - ANSWER-A company that, at the time of incorporation, has no significant
assets or operations
Which of the following has higher geographic risks for FinTechs? - ANSWER-A customer with beneficial
owners based in a higher risk jurisdiction.
Why might a FinTech outsource their AML controls? - ANSWER-FinTechs might lack the needed in-house
expertise.
What is a characteristic of the FinTech sector, relevant to financial crime? - ANSWER-FinTechs often
meet customers non-face-to-face for onboarding.
What concerns did the whistleblower's report raise about Revolut's program? - ANSWER-Revolut's AML
checks were not sufficient to successfully identify potential criminals.
A customer's account is suspended due to a suspicious activity alert and the customer is demanding an
immediate explanation. Who is responsible for how the response is handled? - ANSWER-Money
Laundering Reporting Officer
Which information is most useful to a Money Laundering Reporting Officer (MLRO) when presenting
updates, findings, and trends to members of an institution's board and upper management? - ANSWER-
Overall number of SARs/STRs submitted to a law enforcement agency
A new customer appears to be structuring transactions to stay under the account threshold. Which is
the next best step in the transaction monitoring and investigation process? - ANSWER-Conduct
additional research into the nature of the account and transactions.
Suspicious activity reporting is designed to: - ANSWER-alert law enforcement to potential instances of
money laundering or terrorist financing.
,3|Page
Launching an AML investigation with a certain belief in mind, such as the belief money laundering is
occurring, and selecting specific pieces of information to support that belief while ignoring data that
supports a counter view is known as what type of bias? - ANSWER-Confirmation bias
In addition to customer name, which supplemental independent data element, if accidentally exposed,
would require a breach notification to be sent to a single customer? - ANSWER-Driver's license or
identity card image
Which is a benefit of digital identification verification for anti-financial crime purposes? - ANSWER-
Improves customer experience.
Which of the following is a sign of a jurisdiction that facilitates tax evasion? - ANSWER-They levy low or
minimal taxation on the income of non-residents, and provide tax advantages to non-residents
True or False: Some industries are at higher risk for bribery than others, especially those in which
commercial success is driven by getting approval, authority, or contracts from government entities. -
ANSWER-True
Based on the YouTrip fraud case, which of the following statements reflects fraud risk in FinTechs? -
ANSWER-FinTechs are at risk of fraud when they do not have appropriate controls in place.
Why are charitable organizations sometimes part of tax-evasion schemes? - ANSWER-Donations to a
charitable organization typically are tax-deductible
What is an ultimate beneficial owner? - ANSWER-A natural person who owns a portion of a company
Why is a risk-based approach important? - ANSWER-So you can apply appropriate scrutiny based on the
risk presented to you by a given customer
Who usually makes the recommendation to close an account? - ANSWER-SAR Review Team
Which is not a good rule for the second line of defense? - ANSWER-Attach compensation to profitability
, 4|Page
The money laundering reporting officer (MLRO) (or equivalent role) has personal liability within their
organization. - ANSWER-TRUE
Which of the following statements is accurate concerning KYC photo identification solutions, as
demonstrated by the N26 case? - ANSWER-KYC photo identification solutions are not comprehensive if
they cannot detect fake IDs.
What is the main purpose of transaction monitoring controls? - ANSWER-Manage financial risk
What is one difference between transaction monitoring and name screening? - ANSWER-Name
screening is performed prior to onboarding
United Nations sanctions are an example of what type of sanctions regime? - ANSWER-Multilateral
sanctions
As an AML investigator it is your job to: - ANSWER-Investigate and report facts
Which of the following statements about customer due diligence is correct? - ANSWER-The country of
residence and nationality of your customer will be risk-rated
What is "tipping off"? - ANSWER-Telling the subject of a SAR, or anyone who does not need to know,
that a SAR has been filed
Why is it important to filter the information you have gathered through your research? - ANSWER-To
bring together the most relevant and important pieces of information
Why is it important to document your research? - ANSWER-Because a search performed today might
turn up different results in several months' time, and so the process of your searches can be evaluated
for soundness
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
