WHY CFCS. Arc of Financial Crime

Transcription

1 CFCS Q&A

2 ABOUT ACFCS ACFCS is a leading provider of practical tools and knowledge to help professionals improve results in financial crime detection and prevention. Through membership, live and online training, and the Certified Financial Crime Specialist (CFCS) credential, our goal is to deliver resources that enable better performance in financial crime compliance, investigations, regulation and enforcement.

3 Arc of Financial Crime WHY CFCS Over the last three decades, the financial crime risk landscape has expanded dramatically for private and public sector organizations. So too have regulatory expectations, and public and media attention on financial crime issues. The silo ed approach of the past is gradually giving way to a wider view that treats financial crime risks like money laundering, fraud and corruption as parts of an interconnected whole. As a result, financial crime compliance professionals are increasingly seeking adaptive, comprehensive training resources that provide visibility into a broader range of threats. 1970s 90s money laundering is primary focus 2000s Terrorist financing, heightened regulatory scrutiny MID s FCPA and anticorruption enforcement LATE 2000s Tax evasion crackdown, massive fraud schemes exposed PRESENT DAY Diverse risks, soaring expectations, rising cyber threats

4 WHY CFCS The CFCS credential responds to this shift in compliance, regulation, and enforcement toward a converged approach to financial crime by validating knowledge and skill in multiple financial crime fields. Many financial crimes share common elements, channels, red flags and methodologies Detection and prevention techniques share similarities across disciplines; awareness and cross-pollination of best practices can improve results Convergence is a trend in both public and private sectors, but also among threat actors Building information flows, speaking the same language across departments increasingly essential Growing recognition of interconnections between financial crime by national governments and international standard-setting bodies, from FATF to OECD

5 OVERVIEW OF CFCS Universal and not based on practices, laws or regulations of any one country Allows diverse professionals to demonstrate skill and knowledge across multiple fields Designed for private and public sector specialists Promotes career growth, better jobs and pay, confidence

6 WHAT THE EXAM COVERS Investigations Money Laundering Fraud Ethics Corruption International Standards Financial Crime Sanctions Data Security Compliance Programs Asset Recovery Tax Evasion

7 CONSTRUCTION OF CFCS CERTIFICATION Extensive eight month multi-step process: Identification of Job Tasks Worldwide survey Writing of exam items based on job task and survey findings Detailed review and selection of items by experts and psychometricians Staff and team who led process have built 3 prior certifications

8 CERTIFICATION PROCESS Register for CFCS exam Study manual and attend prep course Document 40 CFCS credits based on education, professional experience, training, other certifications Provide two professional references Schedule, take and pass exam Candidates have up to 90 days to submit credit documentation after exam Recertify every three years

9 DEMAND FOR CFCS CERTIFICATION Over 2000 professionals in 83 jurisdictions have earned CFCS certification or registered for it since its release in May major global institutions, a Big 4 Firm, and law enforcement agencies have signed up as many as 200 staff members for certification

10 EXAM PREPARATION AIDS Detailed 347 page exam study manual Revised fourth edition is now available Online exam prep webinars, including practice questions for the exam 35-question practice test, available online Study plans, quick tips and FAQs Live exam prep events

11 ABOUT THE EXAM 145 scenario based, four choice, multiple choice questions Four hour exam session with no breaks, at one of over 730 testing centers or online proctored Passing rate is over 70% Results given immediately

12 ABOUT THE EXAM Recommended three weeks of study, if you commit about 6 8 hours a week Review manual in detail, including referenced materials in appendix, online prep course Prepare based on your own strengths and weaknesses Exam based on best practices, not what you might do at your organization

13 NEXT STEPS Ready to get started? Download the Candidate Handbook - Want to find an exam center or schedule exam? Visit My Certification or our partner to search locations Have questions?

14 Practice Question 1 You are an AML officer at a local bank, which holds accounts for a variety of businesses in your region. Most businesses are tied to the tourism and hospitality industry, as the region is a major vacation destination during the summer months. Many accountholders are small businesses that deal primarily in cash. You are investigating an alert produced by your transaction monitoring system on an account held by a local, family-owned restaurant located near one of the largest tourist resorts in the area. After reviewing KYC information on the account, you determine the family lives in a neighboring country. Upon reviewing the account s activity, you learn the following information. Which fact best supports the possibility that the restaurant account may be used for money laundering? 14

15 Practice Question 1 A. The restaurant makes large cash deposits into its account biweekly from June until early September. B. The account shows a pattern of funds transfers each month to an account held at a bank in a neighboring country. C. The restaurant s account shows consistent deposit activity throughout the calendar year. D. The restaurant s cash deposits were made through a combination of counter and ATM deposits. 15

16 Practice Question 2 Your bank holds a business account for a local tax preparation service. What would MOST likely trigger further investigation by the compliance department in the bank? A. Numerous deposits of tax refund checks in the names of different individuals but with common addresses B. Multiple deposits of checks in the same amount written by different tax service customers C. Variances in the frequency of transactions depending on the calendar cycle D. A request by the customer to have payments made to the Tax Office through a certified check process

17 Question 2 Rationale Answer A is the correct answer due to the fact that this is a classic red flag for tax fraud. Multiple tax refund checks for different individuals going to the same address should set off warning alarms in nearly every jurisdiction. Answer B is incorrect because this perfectly fits the customer s profile. The deposit of checks from different tax service customers is what you would expect as each customer paid their bill for the service. You would also expect many of them to be in the same amount for a typical tax preparation service since the fee for tax preparation would be the same for many customers. Answer C is incorrect because, once again, this fits the customer profile. You would expect variances depending on the calendar cycle as this is largely a seasonal business based on tax reporting deadlines. Answer D is incorrect because there is no indication of tax fraud in this response. The customer is making payments to his jurisdiction s tax authorities using a certified check, which is simply a check for which a bank has confirmed sufficient funds exist to cover the amount of the check. This is not a viable means to commit tax fraud, and would more likely indicate no fraud is taking place.

18 Practice Question 3 Your institution has recently been dealing with a high number of identity theft cases, in which thieves have stolen sensitive customer data and used it to fraudulently apply for credit cards. After an initial investigation, you suspect that an employee is participating in the identity theft scheme. What would be the most effective step you could take to prevent further theft of customer information? A. Immediately notify customers whose data has been compromised B. Restrict access to sensitive customer data, and monitor employee access on an ongoing basis C. Impose strict alert thresholds in the automated monitoring system for all credit cards D. Conduct a mandatory ethics seminar with all institution employees 18

19 Your Questions

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