CGSS

CGSS practice questions, page 6 of 8, with answer review and explanations.

Question 26

When conducting a sanctions compliance program assessment, which are the most important components in determining an organization’s sanctions risk? (Choose two.)

  1. The products and services it offers, including how and where such items fit into other financial or commercial products, services, networks, and/or systems
  2. Its customers, supply chains, intermediaries, and counterparties
  3. The geographic locations of the organization’s senior management
  4. The number of large customers and monthly reviews of their activities
  5. The number of products and services it offers, including how much revenue was produced compared to losses in the last two financial years

Question 27

How might cryptocurrencies be used to evade sanction restrictions? (Choose two.)

  1. Send or receive funds without the use of bank transfers.
  2. Purchase restricted dual-use goods.
  3. Hide the types of goods being purchased.
  4. Obscure the geographic location of beneficial owners.
  5. Pay for the transshipment of goods.

Question 28

The calibration of threshold (percentage) settings in an automated screening tool (AST) is best determined based on the:

  1. amount of false positives generated by the AST.
  2. number of employees who handle alerts.
  3. number of customers of the financial institution.
  4. control and quality of data maintained by the financial institution.

Question 29

Sanctions are most effective at encouraging behavioral change when they:

  1. are used as a short-term strategy as an alternative to war.
  2. demonstrate the moral resolve of the nation imposing the sanctions.
  3. are solely punitive.
  4. are multilateral.

Question 30

Which are considered high-risk factors of an insurance company when assessing sanctions risk exposure? (Choose two.)

  1. Establishing controls that do not permit cash transactions
  2. Having no procedures to identify the beneficial owners of its customers
  3. Using brokers to conduct sanctions due diligence checks on individuals for whom it underwrites policies
  4. Using brokers in jurisdictions known to be low-risk for sanctions due diligence purposes
  5. Having a portfolio of clients based in known transshipment countries