CGSS by ACAMS Actual Free Exam Questions And Answers

Question 1

In accordance with the Office of Foreign Assets Control 50% Rule, which entities would be considered sanctioned even if not listed on the Specially Designated National (SDN) List? (Select Three.)

A. A company with an SDN holding a 12% stake in it, another SDN holding an 18% stake in it, and another SDN holding a 28% stake in it

B. A company with an SDN holding a 98% stake in it

C. A company with 10 SDNs, each holding a 4% stake in it

D. A company with an SDN holding a 20% stake in it, and another SDN holding a 25% stake in it

E. A company with an SDN holding a 45% stake in it, and another SDN holding a 3% stake in it

F. A company with an SDN holding a 35% stake in it, and another SDN holding a 15% stake in it

Discussion 0

Correct Answer: A,B,F Vote an answer

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Question 2

Which would constitute a deceptive shipping practice for the purpose of sanctions evasion?

A. Disabling the Automatic Identification System on vessels

B. Transshipments

C. Chartering the entire vessel to a single client

D. Refueling at a port in a prohibited country

Discussion 0

Correct Answer: A Vote an answer

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Question 3

Independent testing related to sanctions screening should be conducted by which group with adequate technology expertise?

A. A team that is from internal audit

B. A team that conducts investigations

C. A team that manages risk assessments

D. A team that manages the institution's screening lists

Discussion 0

Correct Answer: A Vote an answer

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Question 4

In which scenarios will the Office of Foreign Assets Control's 50% Rule apply to Entity C? (Select Three.)

A. Blocked Person X owns 50% of Entity A and 25% of Entity B. Entities A and B each own 25% of Entity C.

B. Blocked Person X owns 50% of Entity A. Entity A owns 50% (1 share) of Entity C. Blocked Person X owns 1 share directly in Entity C.

C. Blocked Person X owns 50% (1 share) of Entity A. Entity A owns 50% (1 share) of Entity B. Entity B owns 50% (1 share) of Entity C.

D. Blocked Entity A owns 49.99% of Entity B. Entity B owns 49.99% of Entity C.

E. Blocked Person X owns 50% of Entity A and 50% of Entity B. Entities A and B own 25% of Entity C each.

F. Blocked Entity A owns 50% of Entity B. Entity B owns 50% of Entity C.

Discussion 0

Correct Answer: B,C,F Vote an answer

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Question 5

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. Manual processes that ensure lists are screened only against specific jurisdictional data

C. Reviewing and removing reference data from screening, on an ongoing basis, once the data is no longer risk relevant

D. Including exclusions for parties that pose low risks to be omitted from screening

E. Addressing the inclusion of a "good guy" list so that it does not suppress common false positives

Discussion 0

Correct Answer: C,E Vote an answer

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Question 6

The funds of a client have been frozen by a financial institution. Subject to the Office of Foreign Assets Control's (OFAC's) regulations, the best course of action for the client to take would be to:

A. inform the local regulatory authority that the funds have been blocked.

B. apply for a specific license through the OFAC website.

C. initiate a new transaction using a different currency from the blocked account.

D. contact the financial institution that has blocked the funds and request a refund.

Discussion 0

Correct Answer: B Vote an answer

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Question 7

The screening process identifies that a wire payment is received from a shipping company registered in a high-risk jurisdiction, and the funds are temporarily held. An invoice forwarded via the intermediary bank indicates that the payment was made on behalf of an apparent shell company. Which action would be most appropriate from a sanctions risk standpoint?

A. Proceed with the payment if the originator, shell company, and beneficiary are not present on a sanctions list.

B. Freeze/block the payment.

C. Request further information regarding the payment, shell company, and beneficiary before proceeding.

D. Report the payment to the appropriate governmental authority due to sanctions concerns.

Discussion 0

Correct Answer: C Vote an answer

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Question 8

Transliteration is defined as the:

A. process of taking a non-Latin writing system and converting it into Latin script.

B. process of matching an internal record against a sanctioned list record.

C. conversion of text from one script into another.

D. ways in which an individual's name is given to, or used by, the individual.

Discussion 0

Correct Answer: C Vote an answer

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ACAMS Certified Global Sanctions Specialist - CGSS Exam Practice Test

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