CAFCA Manual Exam Questions With 100% Correct Answers.What is financial crime? Answer- Illegal activities that are usually economically motivated.What is money laundering? Answer- The process of concealing or disguising the existence, source, movement, destination, or illegal application of criminally derived property or funds to make them appear legitimate.Three stages of money laundering Answer- - Placement
- Layering
- Integration
- Opportunity
- Rationalization
- The UK Bribery Act 2010
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What is terrorist financing? Answer- Involves fund for an illegal political purpose to support terrorist activities. However, money is necessarily derived from the proceeds of illegal activity.Hawala system plays a big roles in moving terrorist related funds.What are sanctions? Answer- Political decision made as part of diplomatic efforts by countries, regional organization, and international bodies. Sanctions are primarily a foreign policy and security tool. Sanctions are intended to affect behavioral change through deterrence, prevention, or punishment.What is fraud? Answer- An International act of criminal deception in order to obtain an unjust or illegal advantage. Usually for personal gain.Reasons people commit fraud Answer- - Pressure
4th Capacity What is anti-bribery and corruption? Answer- Bribrery is the giving or receiving of a financial or other advantage in connection with the improper performance of a position or trust, or a function that is expected to be performed impartially, or in good faith.Anti-bribery and Corruption Law? Answer- - The Foreign Corrupt Practices Act US
What is tax avoidance? Answer- The legal means to reduce the tax owed.