CGSS

CGSS practice questions, page 7 of 8, with answer review and explanations.

Question 31

A Sanctions Compliance Officer has recently decided that funds related to a transaction need to be blocked pursuant to US sanctions. The customer begins to wonder why their funds are not available and contacts the Sanctions Compliance Officer for information. The Officer:

  1. is free to confirm to the customer that the funds have been blocked and why they were blocked.
  2. can tell the customer to contact FinCEN to ask for a copy of the applicable Suspicious Activity Report (SAR).
  3. can tell the customer to contact OFAC with questions on where their money is.
  4. can neither confirm nor deny that any funds have been blocked due to restrictions on “tipping off” sanctions targets.

Question 32

Which is the most important step to take after identification of a transaction related to a sanctioned person?

  1. Freeze the transaction and continue with enhanced due diligence.
  2. Reverse the transaction and block the account.
  3. Freeze the transaction and report it to the appropriate authorities.
  4. Block the account and mark it for further enhanced due diligence.

Question 33

Which practice could cause an automated screening tool (AST) to perform under-screening?

  1. Incorrectly mapping fields
  2. Not applying exclusion lists
  3. Increasing the number of lists used
  4. Applying partial match/fuzzy logic screening

Question 34

Which activity is authorized under the general licenses provided under the UK’s counter-terrorism sanctions program, but not under the equivalent US program?

  1. Writing an insurance policy for a sanctioned terrorist
  2. Providing legal services for a sanctioned terrorist organization
  3. Providing medicine and medical supplies to a sanctioned terrorist organization
  4. Providing payment to sanctioned terrorist organizations for official business conducted by the UN

Question 35

Which standards, issued as part of the Wolfsberg Group Payment Transparency Standards (WGPTS), were adopted by financial institutions (FIs) to mitigate the risks associated with payment evasion techniques? (Choose two.)

  1. FIs should apply these standards only to payments over a certain value, as established by local regulation.
  2. FIs should reject or stop any payment where full beneficiary information is not included until the sending FI provides it.
  3. FIs should not omit, alter, or delete information in payment messages or payment orders.
  4. FIs should require their correspondent bank customers to sign contracts with clauses requiring adherence to the WGPTS.
  5. FIs should cooperate as fully as possible with other FIs the payment process to provide information on payment parties.