Online Access Free CGSS Practice Test

A manager of a correspondent bank relationship discovers that a respondent bank has expanded its business operations. Which factors are relevant to identifying and assessing sanctions risk exposure? (Select Three.)

• A.The representatives of the respondent's bank
• B.The registration number of the respondent's bank
• C.The licensing authorities of the respondent bank and its branches
• D.The business activity of the respondent bank's customers
• E.The respondent bank's products and services
• F.The location of the respondent bank's operations

"Al-Falah Company", registered in Dubai, wants to open an account at a financial institution. Through due diligence, the compliance team finds out that "El-Fallah Investments", based in Iraq, is under UN sanctions for facilitating terrorism financing. The listed Chief Executive Officer (CEO) of the sanctioned entity is not the same as the CEO of the potential client. How should the compliance team proceed?

• A.This is a near match, thus the client should only be onboarded depending on the financial institution's risk appetite.
• B.The potential client should not be onboarded and the regulator must be notified.
• C.There are enough similarities to pursue further investigation before a decision can be made.
• D.There is insufficient reason to escalate the case for further investigation and the client can be onboarded.

A financial institution provides banking services to cryptocurrency exchanges. One of their clients is a cryptocurrency exchange that specializes in offering privacy coins and provision of a tumbler/mixer service. Which sanctions-related risk should be considered?

• A.A tumbler/mixer service mingles cryptocurrency making it difficult to perform effective sanctions screening.
• B.Privacy coins provide anonymity on the blockchain but can be screened for sanctions compliance by the exchange.
• C.Privacy coins provide enhanced anonymity features that negate the requirements for sanctions screening.
• D.The cryptocurrency exchange can rely on the financial institution to perform due diligence on their clients.

Based on the Wolfsberg Guidance on Sanctions Screening, what are the core principles for generating productive alerts? (Select Two.)

• A.Reducing the threshold settings from the optimal level to create more productive alerts
• B.Addressing the inclusion of a "good guy" list so that it does not suppress common false positives
• C.Including exclusions for parties that pose low risks to be omitted from screening
• D.Reviewing and removing reference data from screening, on an ongoing basis, once the data is no longer risk relevant
• E.Manual processes that ensure lists are screened only against specific jurisdictional data

A sanctions analyst reviews payment requests from a sanctioned country. After investigation, it appears that the request represents a medicine export from a pharmaceutical company to a sanctioned country. Which step should the analyst take next?

• A.Check for applicable general licenses or exemptions.
• B.Demand a specific license.
• C.Review the counterparty.
• D.Reject the payment.