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The CAMS certification exam is designed for professionals in the anti-money laundering field, including compliance officers, risk managers, investigators, and auditors. CAMS exam covers a wide range of topics, including money laundering techniques, anti-money laundering laws and regulations, compliance programs, risk assessment, and due diligence. CAMS exam is conducted online and consists of 120 multiple-choice questions that must be completed within four hours. The passing score for the exam is 75%.
NEW QUESTION # 51
Which is a key aspect in the FATF Recommendations that best describes the essential foundation for allocating resources in AML/CFT regimes for countries and financial institutions (FIs)?
- A. Enforcing mutual legal assistance
- B. Implementing targeted financial sanctions
- C. Applying a risk-based approach
- D. Performing country peer-to-peer evaluations
Answer: C
Explanation:
Reference: https://www.fatf-gafi.org/media/fatf/documents/PF-Public-Consultation-Draft-Amendments.docx
NEW QUESTION # 52
Which three procedures should a compliance officer looking to revise an institution's CTF efforts include in accordance with the Wolfsberg Group's Statement on the Suppression of the Financing of Terrorism?
- A. Reviewing only original identification documents when verifying customers
- B. Consulting applicable lists and taking appropriate actions to determine if customers appear on such lists
- C. Reporting matches from lists of known or suspected terrorists to relevant authorities
- D. Maintaining customer information to facilitate timely retrieval of such information
Answer: B,C,D
NEW QUESTION # 53
According to the Financial Action Task Force 40 Recommendations, Designated Non-Financial Businesses and Professionals include which entities?
- A. Money services businesses
- B. Hawala operators
- C. Real estate agents
- D. Commodities traders
Answer: C
Explanation:
Reference:
http://www.fatf-gafi.org/media/fatf/documents/recommendations/pdfs/FATF%20Recommendations%20(approve (page 19, DNFBPs: customer due diligence, bulleted point (b))
NEW QUESTION # 54
Which of the following is the most common risk with a Personal or Private Investment Company (PIC)?
- A. They are usually established in financial secrecy havens
- B. They are almost always owned by politically exposed persons
- C. They are notpubliclytraded
- D. They often lacktransparentownership
Answer: D
NEW QUESTION # 55
Which is the first valid step in the Mutual Legal Assistance Treaties (MLAT) international cooperation process?
- A. The central authority that receives the request sends it to a local judicial officer to find out if the information is available.
- B. An investigator from the requesting country visits the country where the information is sought and takes statements from the identified witnesses or suspects.
- C. The investigator may remove the evidence collected without asking permission to do so.
- D. The central authority of the requesting country sends a commission letter of request to the central authority of the other country.
Answer: D
Explanation:
Reference:
https://www.unodc.org/documents/organized-crime/Publications/Mutual_Legal_Assistance_Ebook_E.pdf
NEW QUESTION # 56
A financial institution files a suspicious transaction report on a customer as the result of a high volume of large currency deposits to pay off a loan. A law enforcement officer calls the anti-money laundering officer to discuss the suspicious transaction report. Which of the following is the anti-money laundering officer legally permitted to do?
1. Discuss any aspects of the reported activity.
2. Provide copies of the customer's loan documents.
3. Explain the customer's loan payment history.
4. Send the deposit documents referenced in the suspicious transaction report.
- A. 1 and 2 only
- B. 2 and 4 only
- C. 1 and 4 only
- D. 2 and 3 only
Answer: B
NEW QUESTION # 57
Which primary international authoritative body designates sanctions?
- A. Organizationof Economic Co-operation and Development (OECD)
- B. United Nations (UN)
- C. International Monetary Fund (IMF)
- D. Financial Action Task Force (FATF)
Answer: B
NEW QUESTION # 58
What does the Basel Committee's Customer Due Diligence for Banks paper suggest that a bank needs to have in place when establishing an account for a corporate business entity?
- A. A process to ensure that the approval of senior management is obtained prior to opening the account
- B. An understanding of the structure of the company
- C. A policy requiring all identified beneficial owners to undergo a national police check
- D. A fee structure that reflects the banks' costs in monitoring the risks associated with entity's business activities
Answer: B
NEW QUESTION # 59
Which customer transaction with a securities dealer would indicate the highest supicion of money laundering?
- A. A high level of account activity with very low levels of securities transactions
- B. Investment iin securities with a significantly lower risk than the customer's expressed risktolerance
- C. Recurring transfers of money into a brokerage account subsequently invested in shourt-term securties
- D. Frequent trades in unlisted securities throughour the day on a regular basis
Answer: A
NEW QUESTION # 60
In the FATF 40 recommendations, the focus of AML efforts has been expanded beyond Financial Institutions.
Which three businesses and/or professions are covered? Choose 3 answers
- A. casinos, when customers engage in financial transactions equal to or above a designated Threshold
- B. Trust and company service providers
- C. Real estate agents when they are involved in transactions for clients concerning buying and selling properties
- D. Dealers in art, when they engage in any cash transaction with a customer at or above a designated threshold
Answer: B,C,D
NEW QUESTION # 61
What was cited by the Wolfsburg Group in its Statement on the Suppression of the Financing of Terrorism as being vulnerable to terrorist financing?
- A. Private banking
- B. Alternative remittance
- C. Trade finance
- D. Correspondent banking
Answer: B
NEW QUESTION # 62
In May 2002, the Wolfsberg Principles on Private Banking were revised and included a section that prohibits the use of internal non-client accounts in a manner that would prevent officials from appropriate monitoring movements of funds or keep clients from being linked to the movement of funds on their behalf.
What is another name for these internal, non-client accounts?
- A. Correspondent accounts
- B. Pay through accounts
- C. Concentration accounts
- D. Trust accounts
Answer: C
Explanation:
Explanation/Reference: http://www.wolfsberg-principles.com/privat-banking.html (1.2.2, 5th bullet)
NEW QUESTION # 63
Which two actions should Financial Intelligence Units (FIUs) take when submitting a request to another FIU? (Choose two.)
- A. Provide feedback on how the information was used
- B. Disclose the reason and purpose for the request
- C. Make best efforts to provide complete and factual information
- D. Send the same request to all FIUs
Answer: B,C
NEW QUESTION # 64
Why should a financial institution (Fl) require an update of its AML risk assessment?
- A. To identify risk considerations for sharing information based on Fl changes
- B. To satisfy law enforcement when reporting suspicious activity
- C. To ensure an accurate reflection of the Fl's money laundering and other illicit financial activity risks
- D. To ensure the Fl's alignment with the board-approved strategic plan
Answer: C
Explanation:
Explanation
A financial institution should regularly update its AML risk assessment in order to ensure that the results of the assessment are accurate and reflect the current money laundering and other illicit financial activity risks that the institution may face. This helps to ensure the institution has a comprehensive understanding of the risks associated with its activities and can implement adequate controls and procedures as necessary.
NEW QUESTION # 65
An anti-money laundering specialist has been asked to create internal anti-money laundering policies, procedures and controls for a recently chartered offshore financial institution.
Which three should be included? Choose 3 answers
- A. An anti-money laundering compliance program, internal audit program, and procedure manual
- B. Compliance requirement of host and charting countries
- C. A training program for senior management and staff
- D. Basel Committee on Banking Supervision's capital adequacy requirements for the host country
Answer: A,B,C
NEW QUESTION # 66
Which three should real estate agents include in the criteria to assess their company's potential money laundering and terrorist financing risks when implementing a reasonable risk-based approach?
- A. Credit Risk
- B. Customer Risk
- C. Transaction Risk
- D. Geographic Risk
Answer: B,C,D
Explanation:
Reference:http://www.fatfgafi.org/media/fatf/documents/reports/RBA%20Guidance%20for%20Real%20Estate%20Agents.p df(page 20, second paragraph)
NEW QUESTION # 67
In which three situations is correspondent banking most vulnerable to money laundering? Choose 3 answers
- A. When allowing the correspondent bank account to be used by other banks
- B. When allowing the correspondent bank account to be used as a payable through account (PTA)
- C. When allowing financial institutions, without proper due diligence, to access correspondentnetwork for routing their financial transactions
- D. When allowing foreign banks to use the correspondent account to conduct large financialtransactions on behalf of their customers
Answer: A,B,D
NEW QUESTION # 68
What are two requirements with respect to supporting documentation that is used to identify potentially suspicious activity, according to Financial Action Task Force? (Choose two.)
- A. It must only be released to the government through a subpoena process
- B. It must be kept in a manner so that it can be provided promptly
- C. It must be retained for at least seven years
- D. It must be retained for at least five years
Answer: B,D
NEW QUESTION # 69
Which of the following employee behaviors would not trigger an AML red flag?
- A. An employee uses company resources to further private interests.
- B. An employee lives a lavish lifestyle that could not be supported by his or her salary.
- C. An employee generates high earnings on investments made on the stock market.
- D. An employee is involved in an excessive number of unresolved exceptions.
Answer: C
Explanation:
Explanation
While this behavior may warrant scrutiny in certain circumstances, it is not inherently suspicious or indicative of money laundering. In contrast, the other behaviors listed (living beyond one's means, excessive unresolved exceptions, and using company resources for personal gain) may suggest that an employee is engaging in or facilitating money laundering activity.
NEW QUESTION # 70
The bank for International Settlements provides the secretariat for which organization?
- A. The Basel Committee
- B. The Egmont Group
- C. FATF
- D. The Wolfsberg Group
Answer: A
Explanation:
Reference:http://www.bis.org/bcbs/about.htm(4th para)
NEW QUESTION # 71
What are three potential issues for foreign financial institutions maintaining correspondent accounts with U.S. banks under the Patriot Act? Choose 3 answers
- A. Cancellation of correspondent banking relationships
- B. U.S. residents maintaining private banking accounts
- C. Forfeiture of funds in a U.S. interbank account
- D. Prohibition of correspondent accounts for shell banks
Answer: A,C,D
Explanation:
Reference:http://www.ffiec.gov/bsa_aml_infobase/pages_manual/olm_027.htm
NEW QUESTION # 72
Which statement is true regarding the Financial Action Task Force standards for suspicious activity reports (SARs) information sharing within a financial group?
- A. Financial institutions cannot share customer information at all since it is confidential.
- B. Financial institutions must retain copies of SARs and supporting documentation for five years from the date of filing the SARs.
- C. Financial institutions must require approval from regulators to share SARs information and supporting documentation.
- D. Financial institutions should establish sufficient safeguards concerning the confidentiality of information shared for AML purposes.
Answer: D
Explanation:
Explanation
According to the Financial Action Task Force (FATF) standards for suspicious activity reports (SARs) information sharing within a financial group, "Financial institutions should establish adequate procedures to ensure that confidentiality of information is maintained and that information is only used for purposes permitted under national law. Where the parent institution is located in a country that does not permit such sharing, financial institutions should take measures to address this limitation" (CAMS Manual, 6th Edition, page 476). Therefore, financial institutions must establish sufficient safeguards concerning the confidentiality of information shared for AML purposes.
NEW QUESTION # 73
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ACAMS CAMS Certification provides professionals with several benefits, including enhanced credibility, marketability, and earning potential. Certified professionals are recognized as experts in the field of AML/CFT and are highly sought after by employers. Certified Anti-Money Laundering Specialists certification also provides professionals with access to a network of peers and resources, including continuing education programs and professional development opportunities.
To be eligible to take the CAMS certification exam, candidates must meet certain requirements. They must have at least 40 hours of AML training or experience, as well as a high school diploma or equivalent. Alternatively, candidates may have a bachelor's degree or higher from an accredited institution. In addition, candidates must agree to abide by the ACAMS Code of Professional Conduct.
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