Certified Anti-Money Laundering Specialist v1.0 (CAMS)

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Total 314 questions

The branch manager calls the compliance officer and informs her that a law enforcement officer has just left the branch and was asking a lot of questions and left a business card.
What should the compliance officer do?

  • A. File a suspicious transaction report
  • B. Follow up to verify that the officer received all necessary information
  • C. Verify that the reported officer was an actual authorized representative
  • D. Require the branch manager to write a detailed memo about the request


Answer : C

What is a major economic consequence of money laundering through the use of front companies?

  • A. Placing more emphasis on manufacturing
  • B. Weakening of the legitimate private sector
  • C. Creating a more competitive pricing environment
  • D. Aligning management principles between criminal enterprises and legitimate businesses


Answer : B

Reference:
http://people.exeter.ac.uk/watupman/undergrad/rtb/effects2.htm

An institution is about to release a new peer to peer (P2P) funds transfer product to provide much needed remittance services to an under-banked population segment in the country.
The service allows customers to transfer funds through a mobile banking application to individuals worldwide entering only a name and mobile number. The new service charges less than comparable market solutions and offers real time transfer of funds. The customer onboarding process is conducted at branch locations with identity verification.
Which three present the highest anti-money laundering or sanctions risk and will require controls prior to launch? (Choose three.)

  • A. Customer onboarding
  • B. Cross-border functionality
  • C. Real time transfer of funds
  • D. Servicing the under-banked population
  • E. Limited access to counterparty information


Answer : ACE

What is true regarding disclosure to a law enforcement agency by a financial institution of the supporting documentation for a suspicious transaction report?

  • A. Documentation must be provided as quickly as possible using email
  • B. The financial institution may notify the account holder of the request
  • C. Confirm that the request originated from a representative of the law enforcement agency
  • D. A copy of all the documentation released must also be provided to the account holderג€™s attorney


Answer : C

Reference:
https://www.sec.gov/about/offices/ocie/aml2007/fin-2007-g003.pdf

As a result of an audit, a policy exception was identified that had been approved by the compliance officer. The auditor determined that the policy exception is a violation of a regulatory requirement.
What should the auditor do?

  • A. Advise the compliance officer on how to appropriately respond to policy exceptions.
  • B. Include the regulatory violation in the audit report and report it to the board of directors.
  • C. Consult with legal counsel to determine if the approval of the policy exception was acceptable.
  • D. Include the regulatory violation in the audit report and recommend the compliance officer be subject to disciplinary action by the board of directors.


Answer : B

A foreign politically exposed person (PEP) requests to add a beneficiary to a life insurance policy.
How should the request be processed to mitigate risk?

  • A. Perform due diligence on the beneficiary
  • B. Determine the source of wealth and source of funds
  • C. Decline the request if the beneficiary is a foreign PEP
  • D. Decline the request to add a beneficiary due to increased risk


Answer : A

Which requirement is included in the Fourth European Union Directive on money laundering?

  • A. It requires obliged entities to consider politically exposed persons as high risk for life
  • B. It requires obliged entities to conduct enhanced due diligence on all prepaid card holders
  • C. It requires member countries to maintain registries of the beneficial owners of legal entities
  • D. It requires member states to enact economic sanctions against countries that do not cooperate with Financial Action Task Force recommendations


Answer : C

Reference:
https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32018L0843&from=EN

A bank maintains a relationship with a customer who owns a small bakery business.
Which customer action indicates potential money laundering?

  • A. The customer continually makes regular cash deposits
  • B. The customer has multiple bank accounts at several locations
  • C. The customer purchased property insurance that is twice the value of the business
  • D. The customer recently wired a large amount to a foreign jurisdiction where family is located


Answer : B

A U.K. real estate agent has three foreign clients interested in purchasing an apartment building, valued at ֲ£30 million, in the outskirts of London as an investment property. The clients are not willing to have their names provided to the bank. The clients want the purchase to be made in the names of three private companies for privacy reasons. The plan is to wire the funds into an account held in the name of another private company at a bank in London.
Which red flag should stop the agent from discussing this potential purchase further?

  • A. The clients are foreign
  • B. The clients have the funds necessary to fund a ֲ£30 million purchase
  • C. The clients are not willing to have their names provided to the bank
  • D. The clients want the purchase to be made in the names of the private companies


Answer : C

What is a key objective of the Egmont Group?

  • A. To find ways to promote the development of Financial Intelligence Units and the sharing of expertise.
  • B. To safeguard the financial system from illicit use and combat money laundering and promote national security.
  • C. To issue binding standards that establish consistently operated Financial Intelligence Units in member jurisdictions.
  • D. To provide best practices for financial institutions on how to report suspicious activity to best share the information with law enforcement.


Answer : B

Reference:
https://egmontgroup.org/en

The compliance officer for a bank is reviewing on-boarding documents for a new business account for a domestic corporation. The officer is unable to verify the identity of the beneficial owners of the company. Only information on the nominee owners was provided, and none of the listed addresses are local. The purpose of the business and future expected activity was disclosed to include cash letters, money orders and international remittance transfers.
Which red flag identifies a heightened money laundering risk?

  • A. Expected activity was advised to include cash letter and money orders
  • B. The nature and purpose of the business include international remittance transfers
  • C. The names provided at account opening are identified as the corporationג€™s representative nominees
  • D. Account signerג€™s government issued identification lists addresses outside of where the branch account was opened


Answer : B

Law enforcement submitted a request to a bank for information regarding one of its customers.
How should the bank respond according to Financial Action Task Force Guidance?

  • A. Provide all information requested to support the investigation
  • B. Ensure that the request will not violate any local privacy regulations or legislation
  • C. Ensure the information is necessary to the investigation before responding to the request
  • D. Contact the customer informing the person of the investigation to ensure the bank provides correct information


Answer : C

How should a financial institution respond to a verbal request from a law enforcement agency to keep an account open to assist in an investigation?

  • A. Agree to keep the account open
  • B. Request a subpoena to maintain the account
  • C. Request a letter on the agencyג€™s letterhead
  • D. Request a search warrant from the local court


Answer : C

Reference:
http://files.acams.org/pdfs/English_Study_Guide/Chapter_5.pdf
(12)

A bank operates in multiple countries and offers a variety of products and services. The compliance officer recently joined the bank and wants to better understand the inherent level of anti-money laundering risk across the entire organization.
Which two factors should be considered? (Choose two.)

  • A. The Transaction Monitoring program
  • B. The Customer Due Diligence program
  • C. Countries that the bank operates in
  • D. Products and services offered by the bank


Answer : AB

A bank is preparing for its anti-money laundering independent review, which is performed every two years under the direction of the compliance officer. The bankג€™s corporate audit department will conduct the review. The compliance officer will review the final report before it is released to the Board of Directors.
What is the issue with this situation?

  • A. Independent reviews must be performed annually
  • B. The review must be performed by a group outside of the bank
  • C. The final report must be presented directly to the board of directors
  • D. There is a conflict of interest with the management of the review process


Answer : A

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Total 314 questions