Jul 09, 2023 Updated CAMS Dumps Questions For ACAMS Exam
Best Value Available Preparation Guide for CAMS Exam
The CAMS certification is recognized by many organizations, including financial institutions, government agencies, and law enforcement agencies. In fact, many organizations require their employees to hold the CAMS certification as a condition of employment. This is because the certification demonstrates a commitment to AML compliance and a dedication to preventing financial crime.
The CAMS certification exam is designed to test the applicant's knowledge of the international AML regulations and best practices. CAMS exam covers four main areas, including risk assessment, AML program implementation, detection, and reporting of suspicious activity. CAMS exam questions are multiple-choice and are primarily scenario-based, requiring test-takers to apply their knowledge to real-world situations.
NEW QUESTION # 227
Which statement is true regarding the FATF standards for SARs/STRs information sharing within a financial group?
- A. FIs must require approval from regulators to share SARs/STRs information and supporting documentation.
- B. Financial institutions (FIs) should establish sufficient safeguards concerning the confidentiality of information shared for AML purposes.
- C. FIs cannot share customer information at all since it is confidential.
- D. FIs must retain copies of SARs/STRs and supporting documentation for five years from the date of filing the STRs
Answer: D
NEW QUESTION # 228
Which factor should a bank consider before sharing information about a customer with its broker-dealer affiliate in the case of an investigation?
- A. Whether both institutions have an account or are in the process of opening an account for the customer
- B. Whether there is a mutual legal assistance treaty in place between the two institutions
- C. Whether the broker-dealer affiliate can rely on the due diligence done by the bank
- D. Whether privacy and data protection rules permit the bank to share the information with the affiliate
Answer: D
NEW QUESTION # 229
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 fee structure that reflects the banks' costs in monitoring the risks associated with entity's business activities
- 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 process to ensure that the approval of senior management is obtained prior to opening the account
Answer: C
Explanation:
Explanation/Reference: https://www.bis.org/publ/bcbs77.pdf
NEW QUESTION # 230
During a law enforcement investigative interview regarding potential money laundering, the suspect starts making assertions and statements that the investigator believes are false.
How should the investigator respond?
- A. Advise the suspect that the interview will be terminated if there is suspicion of deception
- B. Ask question of a material nature about the suspected false statements without revealing the suspected deception
- C. Direct the interview in another direction until there is better rapport before returning back to the troubling question
- D. Inform the suspect that deception is obvious and continue the interview
Answer: B
NEW QUESTION # 231
Enhanced due diligence (EDD) may be bypassed for which situation?
- A. On-boarding a subsidiary in a high-risk country with a complex ownership structure of a long-standing and reputable customer based in the EU or US.
- B. On-boarding a casino headquartered in the EU or US that is part of an international hotel chain, provides less than 50% of overall revenue and that fully complies with group-wide policies and procedures.
- C. On-boarding a branch or majority-owned subsidiary of an EU or US FI located in a high-risk third country that fully complies with group-wide policies and procedures.
- D. On-boarding a reputable Politically Exposed Person (PEP) from the EU onto the wealth management arm of a US financial institution (FI).
Answer: C
NEW QUESTION # 232
A bank compliance officer has implemented enhanced monitoring rules that have identified some unusual activity that may be indicative of human trafficking.
Which red flag should prompt additional transactional review?
- A. Wire transfer activity from countries with significant migrant populations
- B. Cash deposits that occur in cities where the customer does not reside or conduct business followed by same-day withdrawals
- C. Cash deposits that occur in cities where the customer does not reside or conduct business
- D. Cash deposits that occur in cities where the customer resides and conducts business
Answer: C
NEW QUESTION # 233
An internal review of anti-money laundering training documentation revealed only new agents employed by a financial institution that sells life insurance products were trained. Additionally, it typically took the institution
8 months to begin training for new actuaries. The compliance officer explained training was limited to actuaries because they perform the only high-risk function. The institution relied on e-learning techniques without follow- up assessment.
Which of the following issues would the internal review most likely recommend?
- A. Continue using e-learning to emphasize anti-money laundering content during training.
- B. The institution must provide anti-money laundering training to actuaries within 6 months.
- C. Pro duct-specific anti-money laundering training should be provided company-wide.
- D. All staff, apart from the Board of Directors, must be trained.
Answer: C
NEW QUESTION # 234
In which type of banking transaction is price manipulation, as a form of money laundering, a common practice?
- A. Sending a wire transfer
- B. Issuing a letter of credit
- C. Subscribing to a cash management account
- D. Redeeming an annuity
Answer: B
NEW QUESTION # 235
Which situation is the highest risk fr money laundering and terrorist financing activity?
- A. A customer purchases casino chips and engages in significant game play before requesting a casino check for the remainder
- B. A customer purchases casino chips using a credit card and engages in minimal game play before redeeming the chils for a casino check
- C. A customer purchases casino chips using credit from an account at an affiliated casino and engages in significant game play before redeeming the chips for a casino check
- D. A customer purchases casino chips, using small denomination bank notes, but does not engage in game play before redeeming the chips for a casino check
Answer: A
NEW QUESTION # 236
What should senior management do in order to promote a culture of anti-money laundering compliance?
- A. They should have close ties with the independent auditors of the AML program
- B. They should include compliance with AML procedures as condition of employment
- C. They should attend all training sessions with front-line employment
- D. They should base employee compensation on the amount of suspicious activity they detect
Answer: B
NEW QUESTION # 237
Sanctions screening requirements include that a financial institution should:
- A. immediately close the bank account of an entity who appears on a sanctions list.
- B. compare customer and transaction records against periodically updated sanctions lists provided by governmental bodies.
- C. report an individual whose name appears on a sanctions list to the police.
- D. immediately freeze the bank account of an individual that appears on a sanctions list.
Answer: B
Explanation:
Explanation
Compare customer and transaction records against periodically updated sanctions lists provided by governmental bodies. This is stated in the Certified Anti-Money Laundering Specialist (the 6th edition) manual on page 595, which states: "Sanctions screening requirements include that a financial institution should compare customer and transaction records against periodically updated sanctions lists provided by governmental bodies."
NEW QUESTION # 238
Which of the following facilitates law enforcement agents obtaining evidence from authorities in a foreign country relating to criminal activity?
- A. USA PATRIOT Act Communications System
- B. Mutual Legal Assistance Treaties
- C. The International Agreement for Mutual Assistance
- D. The World Wide Network of Information Sharing
Answer: B
NEW QUESTION # 239
Which of the following provides anti-money laundering specialists information related to money laundering trends?
- A. Egmont Group's 100 Cases
- B. The Wolfsburg Principles
- C. FinCEN's SAR Activity Review
- D. Financial Action Task Force Typologies
Answer: A,B,D
NEW QUESTION # 240
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 retained for at least five years
- C. It must be retained for at least seven years
- D. It must be kept in a manner so that it can be provided promptly
Answer: B,D
Explanation:
Reference: https://www.fatf-gafi.org/media/fatf/documents/recommendations/pdfs/FATF%
20Recommendations%202012.pdf
NEW QUESTION # 241
When the minimum CDD standards of the home and host countries differ, the offices in the host countries should follow which requirements?
- A. The CDD standards required by the home country
- B. The minimum required
- C. The higher standard of the two
- D. Local rules and regulations
Answer: C
NEW QUESTION # 242
Which transaction should result in a suspicious activity report filing?
- A. A national food-chain restaurant with multiple cash transactions at various branch locations.
- B. A small business owner deposits checks totaling 9,950 USD on a daily basis without providing a legitimate purpose.
- C. A small business owner deposits 25.000 USD in cash proceeds with a business equipment bill of sale.
- D. A national food-chain restaurant makes multiple, anticipated cash transactions that are above the daily reporting threshold.
Answer: B
Explanation:
Explanation
According to the Certified Anti-Money Laundering Specialist (the 6th edition), Section 2.2.5 Suspicious Activity Reporting (SAR) Requirements, a Suspicious Activity Report (SAR) filing is required when a financial institution is aware of, or suspects, a possible violation of law or regulation, or any other suspicious activity related to money laundering, terrorist financing, or other unlawful activity. In this case, Answer A would require a Suspicious Activity Report filing as the deposits are made on a daily basis without providing a legitimate purpose.
According to the Financial Crimes Enforcement Network's (FinCEN) guidance, one example of a suspicious transaction is "frequent deposits of cash or monetary instruments in amounts under $10,000 to the same account, or a pattern of such deposits, unless the financial institution has a reasonable explanation for the pattern." (CAMS Manual, 6th Edition, Page 209)
NEW QUESTION # 243
Which event occurs most frequently in money laundering in the insurance industry?
- A. Purchasing full-term insurance bonds
- B. Getting a reimbursement from an overfunded policy
- C. Redeeming a policy at the end of its term
- D. Failing to take advantage of the free-look period
Answer: B
NEW QUESTION # 244
What is the most effective criterion for determining the beneficial ownership of funds?
- A. Having signature authority over the account
- B. Being a person who is the trusted party in a correspondent banking relationship
- C. Having control over such funds or entitlement to such funds
- D. Being the person in whose name an account is opened with a financial institution
Answer: D
NEW QUESTION # 245
What is operational risk?
- A. The potential for loss due to inadequate processes, people, systems, or external events
- B. The potential for lawsuits, fines, and penalties increasing an organization's expenses
- C. The potential for loss resulting from too much credit or loan exposure to one borrower
- D. The potential for loss of public confidence in an organization's integrity
Answer: A
NEW QUESTION # 246
An automotive parts company in South America sends multiple $500,000 wire transfers per week to ABC Holdings Ltd. in Asia referencing payment for silk flower shipments. Research reveals Sunrise Holdings, Ltd is registered in the British Virgin Islands with no available ownership information.
What are two red flags that indicate how trade-based money laundering could be occurring in this instance? (Choose two.)
- A. The packaging is inconsistent with the commodity or shipping method
- B. The transaction involves the use of front (or shell) companies
- C. The type of commodity being shipped appears inconsistent with the exporter or importer's regular business activities
- D. Significant discrepancies appear between the description of the commodity on the bill of lading and the invoice
Answer: B,C
NEW QUESTION # 247
Why should a financial institution (Fl) require an update of its AML risk assessment?
- A. To ensure the Fl's alignment with the board-approved strategic plan
- B. To ensure an accurate reflection of the Fl's money laundering and other illicit financial activity risks
- C. To satisfy law enforcement when reporting suspicious activity
- D. To identify risk considerations for sharing information based on Fl changes
Answer: B
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 # 248
An anti-money laundering specialist is employed by a large multi-national bank. The bank is planning to open an international department that will be responsible for expanding services to various countries. The head of the new international department has asked specialist to assess risks associated with the bank's expansion plans. What three set of materials should be included as a reference? Choose 3 answers
- A. U.S. Patriot Act
- B. FATF 40 Recommendations
- C. The Egmont Group Statement Purpose
- D. Customer Due Diligence for Banks issued by Basel committee on Banking Supervisions
Answer: A,B,D
NEW QUESTION # 249
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. Transaction Risk
- B. Credit Risk
- C. Customer Risk
- D. Geographic Risk
Answer: A,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 # 250
An internal investigation log is primarily intended to:
- A. Track the status of investigations into unusual activity.
- B. Detect and monitor possible suspicious activity.
- C. Report status of investigations to the Board of Directors.
- D. Provide training on investigations to the anti-money laundering officer and Financial IntelligenceUnit.
- E. Report status of investigations to the Board of Directors.
Answer: E
NEW QUESTION # 251
A recent anti-money laundering audit revealed several regulatory reporting violations and lapses with the organization's anti-money laundering policy. As a result, the compliance officer has created a follow-up matrix to document progress in correcting the identified deficiencies.
To whom should the compliance officer provide regular updates of corrective action to help ensure the appropriate oversight?
- A. Designated board committee
- B. Business line managers
- C. Human Resources
- D. Audit management
Answer: A
NEW QUESTION # 252
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