CGSS

CGSS practice questions, page 3 of 8, with answer review and explanations.

Question 11

In automated screening, what does whitelisting refer to?

  1. Elimination of customer names that are confirmed false positives
  2. Fuzzy matching of names
  3. Frequency of list screening
  4. Geographical application of sanctions list screening

Question 12

To evade sanctions restrictions, transactions routed through temporary general ledger or suspense accounts falsely identify a financial institution as the:

  1. intermediary from which the payment originates.
  2. party from which a payment originates.
  3. party who received the payment.
  4. correspondent bank through which the payment was routed.

Question 13

Based on OFAC, the frequency of running a scan for customers and transactions is guided by a financial institution’s (FI) internal procedures; however, it is mandatory to:

  1. understand the risks involved in the hit and apply the FI’s internal policies and procedures.
  2. block a transaction to a sanctioned person, entity, or country.
  3. know what has been changed in the lists and scan the customer database immediately.
  4. investigate any type of suspicion within the time limit specified by the FI’s procedure.

Question 14

During an alert investigation for a possible true match, a Sanctions Compliance Officer is presented with contradicting identifying information. On which source of information should the Sanctions Compliance Officer primarily rely in order to complete the investigation?

  1. Internal Know Your Customer (KYC) documentation
  2. Third-party databases
  3. Legal counsel and/or external sanctions specialists
  4. Online articles and media publications

Question 15

Which statement best describes the difference between OFAC general licenses and OFAC specific licenses?

  1. General licenses can be revoked, while specific licenses cannot.
  2. General licenses are free to apply for, while specific licenses require a fee.
  3. General licenses can be used by anyone, while specific licenses only apply to named parties.
  4. General licenses apply to businesses, while specific licenses apply to natural persons.