Certified Global Sanctions Specialist v1.0

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Exam contains 194 questions

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:

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


Answer : D

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

  • A. Freeze the transaction and continue with enhanced due diligence.
  • B. Reverse the transaction and block the account.
  • C. Freeze the transaction and report it to the appropriate authorities.
  • D. Block the account and mark it for further enhanced due diligence.


Answer : C

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

  • A. Incorrectly mapping fields
  • B. Not applying exclusion lists
  • C. Increasing the number of lists used
  • D. Applying partial match/fuzzy logic screening


Answer : A

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

  • A. Writing an insurance policy for a sanctioned terrorist
  • B. Providing legal services for a sanctioned terrorist organization
  • C. Providing medicine and medical supplies to a sanctioned terrorist organization
  • D. Providing payment to sanctioned terrorist organizations for official business conducted by the UN


Answer : A

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.)

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


Answer : CE

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

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


Answer : B

Primary sources of information used in sanctions investigations:

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


Answer : C

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

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


Answer : B

Why are inequalities lists complied by financial institutions and implemented in automated screening tools (ASTs)?

  • A. Convert texts from one language to another.
  • B. Test the effectiveness and efficiency of the AST.
  • C. Suppress future hits based on similar data.
  • D. Identify partial matches.


Answer : D

Company X acquires a 60% interest in Company Y. During the acquisition, Company X conducts training with Company Y employees on the company’s sanctions policy, which prohibits dealing with sanctioned Country Z. Company Y continues to trade with Country Z. Which controls are most likely to detect the prohibited activity? (Choose two.)

  • A. Taking appropriate steps to audit, monitor, and verify newly acquired subsidiary for sanctions compliance
  • B. Conducting a culture-of compliance survey after the acquisition
  • C. Replacing Company Y’s management team with the leadership team from Company X
  • D. Providing ongoing sanctions compliance training
  • E. Conducting sanctions-related due diligence prior to and after the acquisition


Answer : AE

Which example best describes how the US determines the sanctions status of a legal entity with sanctions target(s) in their ownership structure?

  • A. If Blocked Person X owns 25% of Entity A and owns 25% of Entity B, both Entity A and Entity B are considered to be blocked.
  • B. If Blocked Person X owns 25% of Entity A and Blocked Person Y owns another 25% of Entity A, Entity A is considered to be blocked.
  • C. If Blocked Person X owns 25% of Entity A, Entity A is considered to be blocked.
  • D. If Blocked Person X owns 25% of Entity A, and Blocked Person Y owns another 10% of Entity A, Entity A is considered to be blocked.


Answer : B

Which risk factor is most important in driving exposure to sanctions risk for a non-life insurance company?

  • A. Selling of marine cargo insurance products to importers
  • B. Involvement of politically exposed persons, their family members, or close associates
  • C. Selling of motor insurance products to government officials
  • D. Involvement of a licensed broker who sells products in the home country of the insurance company


Answer : A

Which technology uses human feedback and advanced statistical modeling techniques to make decisions used in resolving sanctions screening alerts?

  • A. Robotics process automation
  • B. Data visualization
  • C. Artificial intelligence
  • D. Machine learning


Answer : D

A financial institution is issuing a letter of credit for a shipment of goods to Country X. Country X is next to Country Y. Sanctions on Country Y bar all imports and exports. Which is the Sanctions Compliance Officer’s primary concern due to the two countries’ proximity?

  • A. The importer could choose to resell some of these goods to buyers from the sanctioned country.
  • B. The cargo vessel could turn off its Automatic Identification System (AIS) transponder and proceed to the sanctioned country.
  • C. The goods are being transshipped to the sanctioned country.
  • D. The end-use of the goods is falsified.


Answer : C

Which industries are considered high-risk for sanctions circumvention? (Choose three.)

  • A. Tourism
  • B. Supermarket and retail
  • C. Coffee
  • D. Education
    D. Precious metals
  • E. Insurance


Answer : AED

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Exam contains 194 questions

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