1 for specific request mail
Certified AML Fintech Compliance Associate (CAFCA)
Questions and Correct Answers | Latest Update
What is Financial Crime?
Ans: Illegal activities that typically are economically motivated, such as
money laundering, terrorist financing, sanctions, fraud, bribery,
corruption, and tax evasion
Name the three basic stages of money laundering.
Ans: Placement, layering, and integration
Assignment Expert
State the key differences between money laundering and terrorist
Guru01 - Stuvia
financing.
Ans: Terrorist financing uses funds to support terrorist activities, but
the funds are not necessarily derived from illegal activities. Money
laundering always involves the proceeds of illegal activities, typically
2026
committed by the ultimate beneficiaries of the funds.
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What are the main types of sanctions and who do they target?
Ans: 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.
Ans: The three major reasons are pressure, opportunity, and
rationalization. This model is referred to as the "Fraud Triangle".
Name two important pieces of anti-bribery and corruption legislation
with extra-territorial reach.
Ans: The Foreign Corrupt Practices Act in the US and The UK Bribery Act
2010.
, 2 for specific request mail
State two differences between tax avoidance and tax evasion.
Ans: Tax avoidance uses legal practices to reduce taxes owed, whereas
tax evasion uses illegal practices to evade paying taxes owed.
Name an example of politically exposed persons (PEPs).
Ans: Examples of PEPs include heads of state or heads of government,
senior politicians, senior government, judicial and military officials,
senior executives of state-owned corporations, and important political
party officials, as well as their families and close associates. Usually, PEP
positions are specified in each jurisdiction's AML regulation.
Assignment Expert
State an example of high-risk customers that Fin Techs might encounter.
Guru01 - Stuvia
Ans: Examples include customers who sign up using false identities,
customers who lie about the purpose of business relationships, front
companies, companies with complex ownership structures, and
customers linked to organized crime groups.
2026
Name some jurisdiction risks and red flags in the FinTech sector.
©
Ans: Jurisdictions with higher risk include those with poor AML
regulations, high levels of corruption, inadequate frameworks to prevent
financing of terrorism, and economic sanctions in place. Jurisdictions
that are tax havens and those known to host shell companies are also
high risk.
Why are Fin Techs often considered to be high-risk companies?
Ans: Because of the lack of face-to-face encounters and the speed with
which a person can access financial products.
What are some Fin Tech risks and red flags?
Ans: Non face-to-face customer interactions and onboarding,
cryptocurrencies and anonymity, faster payments, new technologies and
Certified AML Fintech Compliance Associate (CAFCA)
Questions and Correct Answers | Latest Update
What is Financial Crime?
Ans: Illegal activities that typically are economically motivated, such as
money laundering, terrorist financing, sanctions, fraud, bribery,
corruption, and tax evasion
Name the three basic stages of money laundering.
Ans: Placement, layering, and integration
Assignment Expert
State the key differences between money laundering and terrorist
Guru01 - Stuvia
financing.
Ans: Terrorist financing uses funds to support terrorist activities, but
the funds are not necessarily derived from illegal activities. Money
laundering always involves the proceeds of illegal activities, typically
2026
committed by the ultimate beneficiaries of the funds.
©
What are the main types of sanctions and who do they target?
Ans: 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.
Ans: The three major reasons are pressure, opportunity, and
rationalization. This model is referred to as the "Fraud Triangle".
Name two important pieces of anti-bribery and corruption legislation
with extra-territorial reach.
Ans: The Foreign Corrupt Practices Act in the US and The UK Bribery Act
2010.
, 2 for specific request mail
State two differences between tax avoidance and tax evasion.
Ans: Tax avoidance uses legal practices to reduce taxes owed, whereas
tax evasion uses illegal practices to evade paying taxes owed.
Name an example of politically exposed persons (PEPs).
Ans: Examples of PEPs include heads of state or heads of government,
senior politicians, senior government, judicial and military officials,
senior executives of state-owned corporations, and important political
party officials, as well as their families and close associates. Usually, PEP
positions are specified in each jurisdiction's AML regulation.
Assignment Expert
State an example of high-risk customers that Fin Techs might encounter.
Guru01 - Stuvia
Ans: Examples include customers who sign up using false identities,
customers who lie about the purpose of business relationships, front
companies, companies with complex ownership structures, and
customers linked to organized crime groups.
2026
Name some jurisdiction risks and red flags in the FinTech sector.
©
Ans: Jurisdictions with higher risk include those with poor AML
regulations, high levels of corruption, inadequate frameworks to prevent
financing of terrorism, and economic sanctions in place. Jurisdictions
that are tax havens and those known to host shell companies are also
high risk.
Why are Fin Techs often considered to be high-risk companies?
Ans: Because of the lack of face-to-face encounters and the speed with
which a person can access financial products.
What are some Fin Tech risks and red flags?
Ans: Non face-to-face customer interactions and onboarding,
cryptocurrencies and anonymity, faster payments, new technologies and
