Pass the ACFCS Certified Financial Crime Specialist CFCS Questions and answers with ExamsMirror

Which is the MOST effective way to verify a company's registration information?

You are a fraud investigator who is working lor a large hardware and construction supply retailer that believes it is losing revenue to internal theft and embezzlement. The company has many vendors and fraudulent invoicing is suspected as a source of lost funds.

You have gathered records on payments to vendors from the accounts payable department, and are now going vendor by vendor to analyze documents and look for sources of fraud. You are currently reviewing information on one vendor, Quality Goods, Inc.

• Twenty invoices were received and paid from Quality Goods in the past six months

• Sixteen invoices were for amounts of about S9,000 dollars each Two were just below S1,000 and the remaining two were for amounts of about $3,000

• Purchase orders for items from Quality Goods total about $130,000

• Descriptions of items purchased varies somewhat by invoice but they generally describe different types of plumbing supplies

Given this information what would be the most likely red flag?

Joe Brown a new small business owner wants lo open a new business account at Mega Bank. He Sils down with a bank officer who is very friendly and asks about his new business and his family Joe becomes uncomfortable about sharing so much information about himself with a stranger. He expresses his concern and the bank officer tells him that this information is required for anyone opening a newaccount with Mega Bank and that every other bank is going to ask him the same questions.

Assuming it is a low-risk customer which information does a bank need to collect and then verify from a new account holder?

Jose who resides in Country Y wants to send funds to Alicia in Country Z. Jose delivers funds to a merchant in Country Y who, in return gives him a code forauthentication purposes The merchant then instructs a colleague in Country Z to deliver an equivalent amount in the local currency to Alicia upon presentation of the designated code After the remittance the first merchant has a liability to the second Their positions can also be transferred to other intermediaries who can assume and consolidate the initial positions and settle at wholesale or multilateral levels.

Which type of transaction is this?

A large banking institution retains a collections law firm to determine if a $25 million default on a commercial loan is fraud. The attorneys need to determine if the defaulting parly is worth pursuing in civil litigation by first determining if the defaulting entity and/or individual committed fraud by intentionally defaulting.

Which is an indicator or a red flag that the defaulting party could be committing fraud?

An internal auditor is conducting a quality assurance review of sales results and records for a large U.S. based aerospace and defense contracting firm The auditor has been tasked with reviewing the recordsofsales departments in several countries because the company has raised concerns over accounting discrepancies and possible issues with inflated sales figures.

In the records of one sales department the auditor documents an unusually high number of returnsofairplane parts. These returns come from purchasers who executed sales contracts only to invoke right of return shortly afterwards.

Upon reviewing thesesales contracts,the auditor cannot find specific provisions regarding right of return for purchasers.

Given this information which is the MOST likely conclusion the internal auditor will make?

You are Ihe chief anti-money laundering officer of a lull-service bank and you are designing a risk-based customer acceptance program to determine the Terrorist Financing risks specific to not-for-profit (NFP) organizations.

Which enhanced due diligence activity is MOST essential for these types of client relationships due to the elevated risk that NFPs pose?

A U.S. citizen applies lo open a bank account in a local bank in a non-US jurisdiction with a Model II Agreement with an initial deposit of S75.000 USD The bank has a substantial correspondent banking relationship with U.S banks and wants to remain in good standing with its U S counterparts.

Which statement is true about this bank?

A law enforcement agent is investigating a properly within her jurisdiction that she believes may have been purchased with the proceeds of an online Fraud scheme. The property in question is a luxury condominium in a high-end residentialcommunity in a large urban area. It does not appear to be currently occupied and the agent suspects the properly might be used to integrate the fraudster s illicit profits.

After reviewing the case notes collected to date in the investigation the agent determines that the properly was purchased in the name of a shell company formed in another jurisdiction known for a high degree of corporate secrecy The agent is seeking to identity the beneficial owner of the properly to tie its purchase back to the proceeds of the fraud scheme.

Which is Ihe BEST next step in her investigation to find sources ol information that could identify the property's beneficial owner?

You work in a federal government agency processing benefits for millions of people who meet a specified sell of conditions (e. g, age, business size, medical necessity). The requests for benefits are filed electronically. Knowing that Fraudsters often falsely claim eligibility you have been asked to recommend analytical solutions to reduce the fraud across the agency's operations.

Which analytical or investigative method would MOST effectively identify potential fraudsters at the agency's enterprise level of operations?