CGSS

Review 194 CGSS practice questions with answer explanations and community insights.

Question 1

Which are ways a financial institution can manage a frozen asset account? (Choose two.)

  1. Charge interest to interesting-bearing accounts at a normal interest rate.
  2. Add interest to a frozen interest-bearing account at a normal interest rate.
  3. Charge interest to a frozen account at a higher-than normal interest rate as a form of payment.
  4. Add interest to interesting-bearing accounts at a lower-than-normal rate.
  5. Charge interest to a frozen account that would normally have interest charged.

Question 2

How does the EU’s Best Practice Guidance differ from OFAC Guidance regarding sanctions due diligence and beneficial ownership? (Choose two.)

  1. OFAC’s rule blocks an entity when a sanctions target controls or exercises influence over an entity.
  2. OFAC’s rule does not include aggregated ownership.
  3. OFAC’s rule applies when a sanctions target owns more than 40% of a legal entity.
  4. The EU’s rule applies when a sanctions target owns more than 50% of a legal entity.
  5. The EU requires that assets be frozen when a sanctions target controls or exercises influence over an entity.

Question 3

An OFAC-designed person owns 60% of Entity A and 30% of Entity B. Entity A owns 25% of Entity C. Entity B owns 20% of Entity C. Which entity(ies) should be considered sanctioned according to the OFAC 50% rule?

  1. Only Entity A.
  2. Entities A, B, and C.
  3. Entities A and C.
  4. Entities A and B.

Question 4

When applying a risk-based approach to creating a sanctions compliance program, a Sanctions Compliance Officer should include which elements in an evaluation of the business?

  1. Level of revenue generated by the company’s largest customers
  2. Creditworthiness of its customers
  3. Companies in its supply chain and the geographies they operate in
  4. Level of regulatory enforcement in the foreign locations in which the company operates

Question 5

After completing an investigation with the decision that no sanctions violation occurred, the best way to document the investigation is in accordance with:

  1. the regulatory agency guidelines.
  2. a supervisor’s guidelines.
  3. industry guidelines.
  4. the institution’s guidelines.
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