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CERTIFIED AML FINTECH COMPLIANCE ASSOCIATE (CAFCA)
NEWEST 2025/2026 ACTUAL EXAM COMPLETE 200 QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+
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.
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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
The money laundering reporting officer (MLRO) (or equivalent role) has
personal liability within their organization. - ANSWER-TRUE
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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
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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 2010.
What are the main types of sanctions and who do they target? - ANSWER-
Financial, economic, and trade. They generally target individuals,
organizations, and countries.
List the three major reasons people commit fraud, and what this model is
called. - ANSWER-The three major reasons are pressure, opportunity, and
rationalization. This model is referred to as the "Fraud Triangle.
State two differences between tax avoidance and tax evasion. - ANSWER-
Tax avoidance uses legal practices to reduce taxes owed, whereas tax
evasion uses illegal practices to evade paying taxes owed.
CERTIFIED AML FINTECH COMPLIANCE ASSOCIATE (CAFCA)
NEWEST 2025/2026 ACTUAL EXAM COMPLETE 200 QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+
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.
,2|Page
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
The money laundering reporting officer (MLRO) (or equivalent role) has
personal liability within their organization. - ANSWER-TRUE
,3|Page
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
, 4|Page
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 2010.
What are the main types of sanctions and who do they target? - ANSWER-
Financial, economic, and trade. They generally target individuals,
organizations, and countries.
List the three major reasons people commit fraud, and what this model is
called. - ANSWER-The three major reasons are pressure, opportunity, and
rationalization. This model is referred to as the "Fraud Triangle.
State two differences between tax avoidance and tax evasion. - ANSWER-
Tax avoidance uses legal practices to reduce taxes owed, whereas tax
evasion uses illegal practices to evade paying taxes owed.
