CGSS

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

Question 36

When exposure to a sanctioned party is identified and asset freezing is required, what action should a Sanctions Compliance Officer take?

  1. Inform the regulator and file a Suspicious Activity Report (SAR).
  2. Freeze the sanctioned party’s assets and inform the regulator as required by law.
  3. Freeze the sanctioned party’s assets and inform the party of its sanctioned status.
  4. Continue processing transactions for the sanctioned party as normal so as not to “tip off”.

Question 37

Primary sources of information used in sanctions investigations:

  1. provide direct evidence about a sanction or sanctions target.
  2. include the web, as Google searches are used to confirm the information contained in key legal documents.
  3. include key legal information documents, such as certified legal documentation and corporate registry searches.
  4. typically contain the same information as secondary sources.

Question 38

A risk-based approach to sanctions compliance, likely acceptable to auditors and regulators, could enable a firm to:

  1. not perform sanctions screening for any purely domestic business.
  2. not screen for cargo vessel names in domestic payments between domestic counterparties.
  3. screen solely against the sanctions lists published on regulator websites.
  4. not perform sanctions screening for clients, or their transactions, referred by the CEO or members of the board.