CGSS

CGSS practice questions, page 4 of 8, with answer review and explanations.

Question 16

An institution’s sanctions policies, procedures, and controls must be proportionate to the institution’s: (Choose three.)

  1. number of false positive alerts.
  2. geographical risk.
  3. employees’ knowledge and expertise.
  4. risk associated with money laundering.
  5. nature and scale of business operations.
  6. complexity of financial products and services.

Question 17

What legal principle maintains that someone will be held accountable for violating a sanction regardless of their knowledge of the wrongdoing?

  1. Collective knowledge
  2. Strict liability
  3. Willful blindness
  4. Actual knowledge

Question 18

A Sanctions Compliance Officer has been referred a payment relating to a frozen account held in the name of a Specially Designated National (SDN). Based on the UN basic exemption list, which payments can be made? (Choose two.)

  1. Insurance premiums
  2. Dividends due
  3. Public utility charges
  4. Traded securities
  5. Loan draw-down fees

Question 19

Which similarity exists between sanctions screening of cross-border payments and trade finance transactions?

  1. Both payment and trade transactions should be screened against politically exposed persons.
  2. Both payment and trade screening should cover transaction dates and amounts to ensure effectiveness.
  3. Both payment and trade screening should be performed at a point in time when a transaction can be stopped.
  4. Both payment and trade screening should be automated to ensure effectiveness.

Question 20

Upon conclusion of an investigation, an investigator has reached a decision that no violation of US sanctions has occurred. Which steps should the investigator take next? (Choose two.)

  1. File the report with OFAC within 10 business days
  2. Document the decision made and the rationale
  3. Save the evidence used during the investigation
  4. Check the investigator’s organization’s policies to ensure a report needs to be filed with OFAC
  5. Send the individual under investigation a letter informing then of their exoneration