ACFCS Financial Crime Specialist - CFCS Exam Questions

QUESTION NO: 1
Which activity would likely be involved in the integration stage ofmoney laundering?

QUESTION NO: 2
During an organizational overview of financial crime controls, Ms. Lee, the compliance analyst, discovers that certain high-risk customers have not undergone enhanced due diligence (EDD) as required by regulatory guidelines. What is the most appropriate action for Ms. Lee to take?

QUESTION NO: 3
Ms. Johnson, the compliance officer at DEF Credit Union, is conducting a risk assessment of the credit union's mobile banking services. Which of the following factors should Ms. Johnson consider when assessing the risks associated with mobile banking?

QUESTION NO: 4
You are an auditor reviewing the financial statements of a firm that manufactures construction equipment The firm's sales have slowed in recent months. Within the last quarter it has closed one of its lactones, however the firm's management are still reporting a positive outlook. Concerned shareholders have asked you to investigate (or possible signs of improper accounting or fraud.
You are reviewing two balance sheets from the start and end of the quarter below Given this information and your knowledge of the company s status which issue is MOST likely to be a red flag?

QUESTION NO: 5
You are in the auditing department at a large publicly traded company in the healthcare sector. Your manager has asked you to assist in reviewing the financial records of a potential acquisition target a smaller company that sells medical supplies to hospitals.
The company's owners have approached your firm with an offer for sale but after an initial review of financial statements your manager is concerned about Ihe potential for inaccurate or fraudulent accounting.
You obtain the company's income statements for recent years shown below:

Which item should be the focus of your investigation into potential fraud or financial misrepresentation?

QUESTION NO: 6
You are a fraud investigator lor a U S securities firm. You are currently investigating potential market manipulation involving stock in a company that was created in the Channel Islands.
One of your brokers has 500,000 shares of this stock in several of his customer's accounts This stock had no trading activity for the past several years In Ihe past 30days he has been selling stock in 5,000-share increments every day from his customer accounts.
Upon review of your firm's books you notice that none of your other customers have bought this stock. Your firm has filed a Suspicious Activity Report (SAR) on this activity. Since this activity is putting your firm at risk you decide to contact your regulator and law enforcement to further the investigation Which items do these agencies have access to that you would not? Choose 2 answers

QUESTION NO: 7
In your job as an analyst with a securities regulator you are reviewing the movement and volatility in penny stocks. As part of your daily work, you review reports and you encounter this chart in the chart the dotted line represents the closing price and the bars represent average daily volume.

Which type of securities fraud should you begin investigating?

QUESTION NO: 8
An employee of Company A is injured in a car accident and rushed to a government-owned hospital in Country X. Prior to admitting the patient the head doctor insists that is it customary for foreigners to pay the hospital a generous donation" and insinuates that the patient will not be admitted without the payment.
The request is an example of which offense?

QUESTION NO: 9
Ms. Garcia, the Chief Compliance Officer of a multinational bank, is reviewing the institution's sanctions compliance program. She wants to ensure that appropriate measures are in place to monitor and control transactions involving high-risk jurisdictions. Which of the following strategies would be most effective for Ms. Garcia to achieve this objective?

QUESTION NO: 10
Your country has received a spontaneous transmittal of information from Switzerland indicating lhal Person A the Director of Procurement from your country's Ministry of Internal Development maintains a bank account in Zurich with an average balance of $7,000 000. Previously there have been numerous allegations that Person A has received bribes in return tor favorable contract awards.
Which activity should be done FIRST to maximize the probability that these lunds are repatriated to your country?

QUESTION NO: 11
The Director of Purchasing at Company A in the US is in charge of purchasing raw materials for vehicle manufacturing. To his supervisors the director appears to live a lifestyle well above his annual salary at the company You are asked to perform a financial investigation lo identify any red flags in Ihe purchasing / inventory departments.
Which two are red flags? Choose 2 answers

QUESTION NO: 12
You are a federal investigator and have identified assets in an offshore jurisdiction that you have strong evidence are the proceeds of illicit activities that look place in your jurisdiction.
While you have convincing evidence that would tie the assets to the financial crime you are investigating you have been unable to obtain documents that show true beneficial ownership because of secrecy laws.
Which action is MOST likely to gain control of the properly or identify the true beneficial owner?

QUESTION NO: 13
You are a law enforcement agent who has received an anonymous tip about suspicious financial activities at Labor Way Inc. a company in your jurisdiction. Labor Way contracts with large corporations internationally to provide temporary employees, and handles payroll processing and lax withholding lor its temporary employees.
You begin an investigation into Labor Way and discover the following information:
* Labor Way's corporate bank account was opened in the name of a law firm that is acting as nominee
* Labor Way's financial records show a sharp increase in revenues and a corresponding increase in temporary employment contracts over the past two years
* Labor Way's transaction history shows periodic withdrawals of large amounts of cash that correspond with its payroll coming due
* Labor Way has recently gained a number of clients in other countries (where it is not located) including several in which it did not previously operate Based on (his information which is your MOST likely conclusion?

QUESTION NO: 14
You are investigating an attorney who is suspected of assistingMr.Jones in hiding his illegal drug proceeds Your investigation has disclosed a bank account controlled by the attorney that is in the nameofa shell company There is a seriesofbank transfers from this account to an account in Switzerland.
Which information would be MOST useful in demonstrating the lawyer's complicity in the money laundering activity?