Topic
FATF
Top 50 MCQs
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Here are 50 MCQs related to
the Financial Action Task Force (FATF) law and its functions, along with the answers:
1. What does FATF stand for?
A) Financial Action Task Force
B) Financial Advisory Task Force
C) Financial Accountability Task Force
D) Financial Analysis Task Force
Answer: A) Financial Action Task Force
2. When was FATF established?
A) 1985
B) 1989
C) 1995
D) 2001
Answer: B) 1989
3. FATF is an international organization that
focuses on combating:
A) Tax evasion
B) Money laundering and terrorist financing
C) Trade imbalances
D) Environmental crimes
Answer: B) Money laundering and terrorist
financing
4. FATF is headquartered in:
A) New York
B) Paris
C) London
D) Tokyo
Answer: B) Paris
5. Which of the following is a primary function
of FATF?
A) Regulating international trade
B) Developing policies to combat money
laundering
C) Providing financial aid to developing
countries
D) Monitoring global stock markets
Answer: B) Developing policies to combat
money laundering
6. FATF issues a list of non-cooperative countries
known as:
A) Blacklist
B) Watchlist
C) Redlist
D) Graylist
Answer: A) Blacklist
7. Countries that partially comply with FATF
recommendations are placed on the:
A) Blacklist
B) Graylist
C) Whitelist
D) Greenlist
Answer: B) Graylist
8. FATF recommendations are intended to provide
a framework for:
A) Financial market regulations
B) International peacekeeping
C) Anti-money laundering and
counter-terrorist financing
D) Trade agreements
Answer: C) Anti-money laundering and
counter-terrorist financing
9. FATF’s recommendations are revised
periodically to:
A) Adjust tax rates
B) Reflect new threats and changes in the
global financial system
C) Promote international tourism
D) Support agricultural development
Answer: B) Reflect new threats and changes
in the global financial system
10. Which type of entities does FATF engage with
for implementing its standards?
A) Environmental NGOs
B) Financial institutions and regulatory
authorities
C) Sports organizations
D) Educational institutions
Answer: B) Financial institutions and
regulatory authorities
11. One of FATF’s core activities is conducting:
A) Trade negotiations
B) Mutual evaluations of member countries
C) Environmental impact assessments
D) Military drills
Answer: B) Mutual evaluations of member
countries
12. FATF’s 40 Recommendations were first issued
in:
A) 1989
B) 1990
C) 1995
D) 2000
Answer: B) 1990
13. The FATF Recommendations provide a
comprehensive plan of action for countries to:
A) Regulate online education
B) Combat money laundering and terrorist
financing
C) Manage public transportation
D) Promote international trade
Answer: B) Combat money laundering and
terrorist financing
14. FATF membership is limited to:
A) Financial institutions
B) Sovereign countries and regional
organizations
C) Private corporations
D) Non-governmental organizations
Answer: B) Sovereign countries and
regional organizations
15. Which of the following is a key principle of
FATF’s approach?
A) Mandatory military service
B) Voluntary compliance with international
norms
C) International cooperation and mutual
legal assistance
D) Promotion of free trade
Answer: C) International cooperation and
mutual legal assistance
16. FATF evaluates the effectiveness of a
country's AML/CFT system based on:
A) Economic growth
B) Legal, regulatory, and operational
measures
C) Tourism statistics
D) Agricultural output
Answer: B) Legal, regulatory, and
operational measures
17. The FATF Secretariat is housed at:
A) The OECD headquarters
B) The United Nations headquarters
C) The World Bank headquarters
D) The International Monetary Fund
headquarters
Answer: A) The OECD headquarters
18. Which organization is a regional body similar
to FATF?
A) Interpol
B) APG (Asia/Pacific Group on Money
Laundering)
C) WHO
D) UNESCO
Answer: B) APG (Asia/Pacific Group on
Money Laundering)
19. FATF's recommendations are used by countries
to:
A) Regulate foreign trade
B) Establish anti-money laundering and
counter-terrorism financing laws
C) Develop sports infrastructure
D) Promote cultural exchange
Answer: B) Establish anti-money laundering
and counter-terrorism financing laws
20. The FATF Recommendations are often referred
to as:
A) Guidelines
B) Standards
C) Principles
D) Policies
Answer: B) Standards
21. FATF’s work includes addressing the risks of:
A) Climate change
B) Illicit financial flows
C) Cybersecurity
D) Public health
Answer: B) Illicit financial flows
22. Which of the following sectors is
specifically addressed by FATF’s Recommendations?
A) Real estate
B) Manufacturing
C) Healthcare
D) Legal professionals
Answer: D) Legal professionals
23. What is the purpose of FATF’s mutual
evaluations?
A) To promote cultural heritage
B) To assess the compliance of member
countries with FATF standards
C) To regulate international trade
D) To monitor agricultural practices
Answer: B) To assess the compliance of
member countries with FATF standards
24. FATF collaborates with which global
organization to combat money laundering and terrorist financing?
A) WHO
B) UNESCO
C) IMF
D) WTO
Answer: C) IMF
25. FATF’s guidance documents are intended to:
A) Provide tourism statistics
B) Offer detailed advice on implementing
FATF standards
C) Regulate environmental policies
D) Promote international sports
Answer: B) Offer detailed advice on
implementing FATF standards
26. A country’s inclusion in the FATF Graylist
indicates:
A) Full compliance with FATF standards
B) Partial compliance with deficiencies
that need to be addressed
C) Non-compliance with severe penalties
D) Exemption from FATF evaluations
Answer: B) Partial compliance with
deficiencies that need to be addressed
27. The FATF Blacklist includes countries that:
A) Have fully implemented FATF standards
B) Have significant deficiencies in their
AML/CFT regimes
C) Are not subject to FATF evaluations
D) Have no financial regulations
Answer: B) Have significant deficiencies
in their AML/CFT regimes
28. FATF Recommendations cover how many specific
areas?
A) 10
B) 20
C) 30
D) 40
Answer: D) 40
29. Which financial activity is specifically
monitored under FATF standards?
A) Trade agreements
B) Real estate transactions
C) Charitable donations
D) Stock market investments
Answer: C) Charitable donations
30. FATF's recommendations also address the
regulation of:
A) Sports leagues
B) Non-financial businesses and professions
C) Educational institutions
D) Agricultural policies
Answer: B) Non-financial businesses and
professions
31. FATF evaluates countries based on their
implementation of:
A) Economic policies
B) AML/CFT measures
C) Trade tariffs
D) Educational reforms
Answer: B) AML/CFT measures
32. FATF's standards apply to which types of
financial institutions?
A) Public libraries
B) Banks and credit unions
C) Sports clubs
D) Manufacturing companies
Answer: B) Banks and credit unions
33. FATF works to ensure the integrity of:
A)
Political elections
B) Financial systems
C) Agricultural exports
D) Public health systems
Answer: B) Financial systems
34. Which entity is responsible for implementing
FATF recommendations within a country?
A) Central bank
B) Ministry of Finance
C) Financial intelligence unit (FIU)
D) Department of Education
Answer: C) Financial intelligence unit
(FIU)
35. FATF’s work is important for maintaining:
A) Global financial stability
B) International trade regulations
C) Public transportation systems
D) Healthcare standards
Answer: A) Global financial stability
36. FATF's recommendations include measures to
prevent:
A) Tax evasion
B) Money laundering and terrorist financing
C) Environmental pollution
D) Political corruption
Answer: B) Money laundering and terrorist
financing
37. FATF's recommendations are legally binding:
A) True
B) False
Answer: B) False (They are not legally
binding but countries are encouraged to implement them)
38. Which body conducts mutual evaluations on
behalf of FATF?
A) Member countries themselves
B) Independent auditors
C) FATF Secretariat
D) Regional bodies like APG, GAFILAT, etc.
Answer: D) Regional bodies like APG,
GAFILAT, etc.
39. FATF recommendations include which of the
following measures?
A) Promoting agricultural exports
B) Freezing and confiscating criminal
assets
C) Building public infrastructure
D) Regulating sports events
Answer: B) Freezing and confiscating
criminal assets
40. FATF's guidance on risk-based approach
requires financial institutions to:
A) Provide loans to all applicants
B) Identify and assess risks of money
laundering and terrorist financing
C) Ignore high-risk clients
D) Increase interest rates
Answer: B) Identify and assess risks of
money laundering and terrorist financing
41. FATF’s role includes providing:
A) Financial assistance to countries
B) Guidance and best practices for AML/CFT
C) Educational programs for children
D) Trade subsidies
Answer: B) Guidance and best practices for
AML/CFT
42. FATF's blacklist is officially known as:
A) Non-Cooperative Countries or Territories
(NCCT) list
B) High-Risk Jurisdictions list
C) Countries of Concern list
D) Red Flag list
Answer: A) Non-Cooperative Countries or
Territories (NCCT) list
43. FATF’s recommendations require countries to
establish:
A) Diplomatic relations with all countries
B) Effective systems for reporting
suspicious transactions
C) Trade agreements with neighboring
countries
D) Universal healthcare systems
Answer: B) Effective systems for reporting
suspicious transactions
44. FATF collaborates with the private sector to:
A) Enhance financial transparency
B) Regulate international sports events
C) Develop cultural policies
D) Monitor environmental impacts
Answer: A) Enhance financial transparency
45. FATF's recommendations include measures to:
A) Combat human trafficking
B) Promote financial inclusion
C) Enhance cybersecurity
D) Strengthen legal frameworks for AML/CFT
Answer: D) Strengthen legal frameworks for
AML/CFT
46. FATF encourages the use of which approach in
implementing AML/CFT measures?
A) One-size-fits-all
B) Risk-based approach
C) Uniform policy
D) Random implementation
Answer: B) Risk-based approach
47. FATF’s work helps protect the international
financial system from:
A) Legal disputes
B) Illicit financial activities
C) Agricultural shortages
D) Educational inequalities
Answer: B) Illicit financial activities
48. FATF standards require financial institutions
to conduct:
A) Market research
B) Customer due diligence (CDD)
C) Sports sponsorships
D) Educational seminars
Answer: B) Customer due diligence (CDD)
49. FATF’s influence extends to:
A) Only member countries
B) Global financial systems
C) Regional sports events
D) Local educational institutions
Answer: B) Global financial systems
50. FATF's effectiveness is enhanced through:
A) Cultural exchange programs
B)
International cooperation and legal assistance
C) Sports competitions
D) Agricultural subsidies
Answer: B) International cooperation and
legal assistance
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