Effective Work Sample Exercises for Hiring Top Financial Crime Investigators

Financial Crime Investigators serve as the frontline defense against financial fraud, money laundering, and other illicit activities that can severely damage an organization's finances and reputation. The stakes in this role are exceptionally high—a single oversight can result in significant financial losses, regulatory penalties, or even criminal liability for the organization. Therefore, the hiring process for this position must be rigorous and thorough.

Traditional interviews alone often fail to reveal a candidate's true capabilities in financial crime investigation. While candidates may articulate their knowledge of regulations and investigative techniques during an interview, their practical skills in analyzing complex data, identifying suspicious patterns, and conducting methodical investigations can only be assessed through hands-on exercises.

Work samples provide a window into how candidates approach real-world scenarios they'll face on the job. For Financial Crime Investigators, these exercises should test analytical abilities, attention to detail, investigative methodology, and communication skills—all critical competencies for success in this role. By observing candidates as they work through realistic scenarios, hiring managers can make more informed decisions about which individuals possess not just the knowledge but the practical skills to excel.

The following work sample exercises are designed to evaluate candidates across the essential competencies required for effective financial crime investigation. Each exercise simulates a different aspect of the role, from data analysis to stakeholder communication, providing a comprehensive assessment of a candidate's capabilities. By incorporating these exercises into your hiring process, you'll be better equipped to identify candidates who can truly safeguard your organization against financial crimes.

Activity #1: Suspicious Transaction Analysis

This exercise evaluates a candidate's analytical thinking and pattern recognition abilities—core skills for any Financial Crime Investigator. By presenting candidates with a dataset containing potentially suspicious transactions, you'll assess their ability to identify red flags, apply regulatory knowledge, and draw evidence-based conclusions. This activity directly tests the candidate's capability to detect financial crimes in their earliest stages, potentially saving your organization from significant losses.

Directions for the Company:

• Prepare a dataset of 50-100 financial transactions in spreadsheet format, with 5-7 suspicious transactions embedded within it. Include transaction dates, amounts, account information, counterparties, and transaction types.
• The suspicious transactions should represent different types of financial crime red flags (e.g., structuring, unusual transaction patterns, high-risk jurisdictions, etc.).
• Provide the candidate with relevant background information about the fictional customers involved.
• Allow 45-60 minutes for this exercise.
• Have a subject matter expert available to evaluate the candidate's methodology and findings.

Directions for the Candidate:

• Review the provided transaction dataset to identify potentially suspicious activities.
• Flag any transactions that appear unusual or concerning, explaining your reasoning for each.
• Identify patterns or relationships between transactions that might indicate coordinated suspicious activity.
• Prepare a brief summary (bullet points are acceptable) of your findings, including:
• Which transactions you've identified as suspicious
• What type of financial crime each might represent
• What additional information you would request to further your investigation
• Recommended next steps

Feedback Mechanism:

• After the candidate presents their findings, provide feedback on their analytical approach and the accuracy of their suspicious transaction identification.
• Offer one specific area of strength (e.g., "You effectively identified the structured transactions below reporting thresholds") and one area for improvement (e.g., "You might have missed the connection between these two seemingly unrelated accounts").
• Give the candidate 10 minutes to revisit the data with this feedback in mind and see if they can identify additional suspicious patterns or refine their analysis.

Activity #2: Case File Review and Investigation Planning

This exercise tests a candidate's methodical approach to investigations and their ability to organize and prioritize information—essential skills for managing complex financial crime cases. By evaluating how candidates structure an investigation from a disorganized set of information, you'll gain insight into their investigative methodology and attention to detail. This activity mirrors the real-world challenge of making sense of fragmented information that financial crime investigators face daily.

Directions for the Company:

• Create a mock case file containing various documents related to a potential financial crime (e.g., customer complaints, transaction records, communication snippets, news articles, regulatory notices).
• Intentionally make the information somewhat disorganized and include both relevant and irrelevant details.
• Include some contradictory information that requires reconciliation.
• Provide the candidate with any necessary context about your organization's investigation procedures.
• Allow 45-60 minutes for this exercise.

Directions for the Candidate:

• Review all materials in the provided case file.
• Organize the information in a logical manner.
• Identify key facts and evidence related to the potential financial crime.
• Develop an investigation plan that includes:
• Preliminary assessment of what type of financial crime may have occurred
• Key questions that need to be answered
• Additional information or evidence needed
• Proposed investigation steps in priority order
• Potential stakeholders to involve (internal and external)
• Estimated timeline for the investigation

Feedback Mechanism:

• After the candidate presents their investigation plan, provide feedback on their organizational approach and investigative strategy.
• Highlight one strength in their methodology (e.g., "Your prioritization of witness interviews before document requests was strategically sound") and one area for improvement (e.g., "Your plan didn't address the conflicting information about the transaction timing").
• Give the candidate 10-15 minutes to revise a portion of their investigation plan based on the feedback.

Activity #3: Stakeholder Interview Role Play

This exercise evaluates a candidate's interviewing skills and ability to extract information from stakeholders—a critical aspect of financial crime investigations. By role-playing an interview scenario, you'll assess the candidate's questioning techniques, active listening, adaptability, and professional demeanor when interacting with others. This activity reflects the interpersonal challenges investigators face when gathering information from various parties involved in potential financial crimes.

Directions for the Company:

• Prepare a scenario involving a potential financial crime (e.g., employee fraud, money laundering through customer accounts).
• Assign a company representative to play the role of an interviewee (options include: a reluctant employee witness, a potentially complicit manager, or a customer with suspicious transactions).
• Create a brief for the role player with background information and key details they should reveal only if asked appropriate questions.
• Provide the candidate with basic background information about the case and the person they'll be interviewing.
• Allow 5-10 minutes for preparation and 20-25 minutes for the interview.

Directions for the Candidate:

• Review the case information provided.
• Prepare an interview strategy and key questions.
• Conduct a professional interview with the goal of gathering relevant information about the potential financial crime.
• Practice active listening and follow-up questioning based on the interviewee's responses.
• Take notes during the interview to capture important details.
• After the interview, summarize the key information obtained and what you believe are the next steps in the investigation.

Feedback Mechanism:

• After the role play, provide feedback on the candidate's interviewing technique and information gathering effectiveness.
• Highlight one strength (e.g., "Your open-ended questions effectively encouraged detailed responses") and one area for improvement (e.g., "You might have missed an opportunity to follow up on the inconsistency about transaction timing").
• Give the candidate an opportunity to conduct a brief follow-up interview (5-7 minutes) implementing the feedback provided.

Activity #4: Investigation Report and Recommendations

This exercise assesses a candidate's ability to synthesize findings and communicate effectively in writing—essential skills for documenting investigations and presenting recommendations to stakeholders. By evaluating how candidates organize, analyze, and present complex information, you'll gain insight into their critical thinking and communication capabilities. This activity reflects the culmination of the investigative process, where findings must be clearly articulated to drive organizational action.

Directions for the Company:

• Prepare a comprehensive case file with evidence of a financial crime that has been fully investigated (e.g., internal fraud scheme, money laundering operation, sanctions violation).
• Include various types of evidence: transaction records, communication logs, interview summaries, and relevant policies/procedures.
• Create a template or outline for the expected report format.
• Allow 60-90 minutes for this exercise.
• Have both compliance/legal and business stakeholders available to review the final report.

Directions for the Candidate:

• Review all case materials provided.
• Analyze the evidence to form conclusions about what occurred, who was involved, and how the financial crime was executed.
• Prepare a professional investigation report that includes:
• Executive summary
• Background of the case
• Methodology used in the investigation
• Key findings with supporting evidence
• Regulatory implications and potential reporting requirements
• Recommendations for:
  • Remediation actions
  • Disciplinary measures (if applicable)
  • Control improvements to prevent similar incidents
• Appendices with relevant supporting documentation

Feedback Mechanism:

• After reviewing the candidate's report, provide feedback on both the content and presentation of their findings.
• Highlight one strength (e.g., "Your clear explanation of the complex transaction flow made the scheme understandable to non-technical readers") and one area for improvement (e.g., "Your recommendations could be more specific about which controls need enhancement").
• Give the candidate 15-20 minutes to revise a specific section of their report based on the feedback provided.

Frequently Asked Questions

How long should we allocate for these work sample exercises?

Each exercise requires approximately 1-2 hours, including preparation, execution, and feedback. We recommend conducting these exercises over multiple interview stages rather than attempting all in a single day, which would be overwhelming for candidates.

Should we use real case data for these exercises?

No, always use fictional scenarios and anonymized data. However, the scenarios should be realistic and reflect the types of financial crimes your organization typically encounters. This protects confidentiality while still testing relevant skills.

What if a candidate has experience in a different industry or with different types of financial crimes?

Focus your evaluation on the candidate's investigative methodology and analytical approach rather than specific industry knowledge. A strong investigator can apply their skills across different contexts. During the feedback portion, you can provide industry-specific context to see how quickly they adapt.

How should we evaluate candidates who take different approaches but reach similar conclusions?

This is where the value of work samples truly shines. Different approaches can be equally valid, and observing a candidate's unique methodology provides insight into their thinking process. Evaluate whether their approach is logical, thorough, and effective—not whether it matches your organization's current methods exactly.

Should we provide these exercises to candidates in advance?

For Activities #1 and #2 (Suspicious Transaction Analysis and Case File Review), providing the materials during the interview is preferable to assess real-time analytical skills. For Activities #3 and #4 (Stakeholder Interview and Investigation Report), giving candidates 24-48 hours of preparation time can result in higher quality work and better reflects real-world conditions.

How do we ensure these exercises don't disadvantage candidates from diverse backgrounds?

Review your scenarios to ensure they don't require cultural knowledge specific to certain groups. Provide clear instructions and be open to different but effective approaches. Remember that diversity in investigative thinking can strengthen your team's ability to detect various types of financial crimes.

Financial crime investigation requires a unique combination of analytical prowess, attention to detail, regulatory knowledge, and communication skills. By incorporating these practical work samples into your hiring process, you'll be able to identify candidates who not only understand financial crime concepts but can apply that knowledge effectively in real-world situations.

The best Financial Crime Investigators don't just identify suspicious activities—they connect dots across complex data sets, conduct thorough investigations, and communicate findings in ways that drive organizational action. These work samples will help you identify candidates with these crucial capabilities, ultimately strengthening your organization's defense against financial crimes.

Ready to elevate your entire hiring process? Yardstick offers comprehensive tools to help you design and execute exceptional interviews. From creating tailored job descriptions with our AI job description generator to developing targeted interview questions with our AI interview question generator and comprehensive evaluation frameworks with our AI interview guide generator, we provide everything you need to identify top Financial Crime Investigation talent. For more information about this role, check out our Financial Crime Investigator job description.

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