The Mark of Financial Crime Knowledge and Skill The Designation the Times Demand

CFCS Certification

Brian KindleExecutive Director

Association of Certified Financial Crime SpecialistsMiami, FL

• Many financial crimes share common elements, channels, red flags and methodologies

• “Convergence” is a trend in both public and private sectors

• International organizations, national governments are increasingly recognizing interconnections between financial crime

Why CFCS Certification?

• Universal and not based on practices, laws or regulations of any 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

What the CFCS Certification Is

The CFCS Examination Covers

Financial Crime

Money Laundering

Fraud

Corruption

Sanctions

Compliance Programs

Tax EvasionAsset Recovery

Data Security

International Standards

Ethics

Investigations

• 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• Experienced ACFCS staff has built 3 prior

certifications

Construction of CFCS Certification

• Over 1200 professionals in 70 countries have earned CFCS certification or registered for it since its release in May 2013

• 12 major global institutions, a Big 4 Firm, and law enforcement agencies have signed up as many as 200 specialists for certification

Demand for CFCS Certification

• 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 2 years to submit credit

documentation after exam• Recertify every two years

Certification Process

• Detailed 347 page exam study manual– Revised third edition is now available

• Online exam prep webinars, including practice questions for the exam

• Live exam prep events

CFCS Exam Preparation Aids

About the Exam• 145 scenario based, four choice, multiple

choice questions

• Four hour exam session with no breaks, at one of over 700 testing centers or online proctored

• Passing rate is around 70%

• Results given immediately

Preparation Suggestions• Recommended three weeks of study, if you commit 6

– 8 hours a week• Review manual in detail, including referenced

materials in appendix• Prepare based on your own strengths and

weaknesses • Exam based on best practices, not what you might do

at your organization

Practice Question 1Your 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 cycleD. A request by the customer to have payments made to the Tax Office through

a certified check process

Question 1 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.

Practice Question 2

14

• 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 compromisedB. Restrict access to sensitive customer data, and monitor employee access

on an ongoing basisC. Impose strict alert thresholds in the automated monitoring system for all

credit cardsD. Conduct a mandatory ethics seminar with all institution employees

15

Practice Question 3

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?

16

Practice Question 3

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.

17

Practice Question 3

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.

Your Questions

Thank you for attending

Need more information?http://www.acfcs.org/about-cfcs/

Or email me:bkindle@acfcs.org