Free CISI Global Financial Compliance practice questions
Exam-standard Global Financial Compliance questions written to the current CISI syllabus. No sign-up, full explanations, and a feel for the real paper.
These 10 questions are a free sample for the CISI Global Financial Compliance exam, written to the current syllabus and the real multiple-choice format. Pick an answer and the explanation appears straight away, so each one teaches you something whether you get it right or wrong.
They span several syllabus elements rather than one topic, so you get a feel for the breadth of the paper. For the complete question bank and full mock exams weighted exactly like the real Global Financial Compliance paper, it is all included in the £59 Pass Package, which covers all nine CISI exams.
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Try 10: Global Financial Compliance
Pick an answer to see whether you got it, and why.
Which of the following best describes an intended benefit of financial regulation?
Not quite. The answer is A.
The workbook lists increasing confidence and trust in markets, systems and products as a core objective of regulation. Regulation cannot guarantee returns or remove all failure risk, and it is not designed to reduce competition between firms.
Irrespective of structure, what two core duties must an effective compliance function carry out?
Not quite. The answer is A.
An effective compliance function regularly assesses and monitors the adequacy of measures and procedures, and advises and assists staff in meeting regulatory obligations. Setting risk appetite, preparing accounts and recruitment are not core compliance responsibilities, though compliance may be consulted on some of these.
What best distinguishes terrorist financing from money laundering in terms of the funds typically involved?
Not quite. The answer is D.
Terrorist financing typically involves smaller sums than money laundering, which makes it harder for firms to spot and track, even though the total funding required by a terrorist organisation can still be substantial. It need not be cash-based, and there is no requirement for it to involve offshore centres specifically.
Under the CISI's Code of Conduct, which Principle specifically requires a member to put clients' interests first and never seek personal advantage from confidential information received?
Not quite. The answer is A.
Client Focus requires members to treat clients fairly, act as a good steward of their interests, and never exploit confidential information for personal gain. Personal Accountability concerns broader professional standards, Professional Development concerns CPD, and Aware of Capabilities concerns declining unqualified work.
According to the OECD Principles of Corporate Governance, corporate governance is best described as which of the following?
Not quite. The answer is D.
The OECD defines corporate governance as the set of relationships between a company's management, board, shareholders and other stakeholders. Capital adequacy, anti-money laundering controls and audit fee agreements are all narrower, specific matters rather than this broad definition of governance.
How does regulation typically differ from law within financial services?
Not quite. The answer is D.
Law provides the structural legislative framework, such as FSMA, while regulation covers rules and standards on matters like market conduct, conflicts of interest and treating customers fairly. Regulation is enforceable, and both law and regulation can apply to firms and consumers alike.
How is compliance risk best described under the BCBS approach?
Not quite. The answer is D.
Compliance risk is the risk of legal or regulatory sanctions, material financial loss, or reputational damage arising from a failure to comply with laws, regulations, rules, SRO standards and codes of conduct. Share price movements, IT outages and trading losses are examples of other risk categories, not compliance risk itself.
Which organisation issues guidance used by private-sector banks in relation to private banking and correspondent banking to help prevent money laundering?
Not quite. The answer is B.
The Wolfsberg Group is a private-sector body of banks that issues guidance on private banking, correspondent banking and related activities to help firms manage financial crime risk. The World Bank, IMF and UN Security Council each play different international roles but do not issue this specific industry guidance.
Which of the following is NOT typically cited as a benefit of a fair and orderly market?
Not quite. The answer is B.
Fair and orderly markets support investor confidence, efficient counterparty matching, liquidity and assurance of settlement, but they do not guarantee any firm a minimum profit. Regulation aims to make markets function well, not to protect individual firms' profitability.
Which of the following is a direct consequence of poor corporate governance identified in relation to banks?
Not quite. The answer is A.
Poor corporate governance can cause markets to lose confidence in a bank's ability to manage its assets and liabilities, including deposits, which can trigger a bank run or liquidity crisis. None of the other outcomes are automatic consequences described in relation to governance failures.
These are a free sample. Passkey has over 4,400 exam-standard questions across all nine CISI exams, sorted so you drill exactly where you are weak. Find your weak spots with the free diagnostic.
Frequently asked questions
Are these real CISI Global Financial Compliance questions?
No. CISI does not publish its live questions. These are original questions written by Passkey to match the current CISI Global Financial Compliance syllabus, format and difficulty.
Is the CISI Global Financial Compliance practice free?
The questions on this page are free with no sign-up. The full Global Financial Compliance question bank and mocks are part of the £59 Pass Package, a single payment covering all nine CISI exams.
How should I use practice questions to pass Global Financial Compliance?
Read the workbook once to build the picture, then spend most of your time answering questions and reviewing the explanations, focusing hardest on the topics you keep getting wrong. Finish with full, timed mocks weighted like the real paper.
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