Sanctions Evasion Quiz

Which of the following is a common technique used to evade sanctions?

• Direct Bank Transfers

• Using shell companies

• Transparent financial disclosures

• Centralized currency exchanges

The use of "front companies" in sanctions evasion refers to:

• Companies that work directly with governments

• Legitimate businesses that openly violate sanctions

• Shell companies that hide the true identity of sanctioned individuals or entities

• Businesses owned by government officials

What method might be used by sanctioned entities to access international markets?

• Direct government contracts

• Smuggling goods across borders

• Establishing offshore accounts with false information

• Hiring public relations firms

Sanctioned individuals may use third-party intermediaries to:

• Increase their transparency

• Conceal their involvement in transactions

• Register for public sanctions lists

• Directly communicate with OFAC

Which of the following is a red flag for sanctions evasion?

• Payment through well-known financial institutions

• Use of an unusual or complex corporate structure

• Transparent ownership disclosures

• Use of long-term trusted trade routes

Sanctions evasion through maritime activities may involve:

• Vessel name changes

• Registered vessel tracking systems

• Transparent shipping routes

• Licensed maritime trade companies

Why might sanctioned entities use barter transactions?

• To avoid paying taxes

• To circumvent financial sanctions that target cash flow

• To increase trade with sanctioned countries

• To promote transparency

A common sanctions evasion strategy used by financial institutions is:

• Reporting all transactions to authorities

• Using correspondent banking relationships to funnel money

• Disclosing beneficial ownership openly

• Following due diligence procedures

Sanctioned individuals or entities sometimes use cryptocurrency to:

• Increase transparency in financial transactions

• Evade traditional financial oversight mechanisms

• Support philanthropic causes

• Seek government approval

When sanctioned entities use trade-based money laundering, they often:

• Over- or under-invoice goods to move funds internationally

• Pay market value for goods and services

• Increase their economic transparency

• Register with OFAC for legitimate trade