ACAMS CAMS-FCI Online Practice Questions and Exam Preparation

ACAMS CAMS-FCI Online Questions & Answers

• Question 41:

  CLIENT INFORMATION FORM Client Name: ABC Tech Corp Client I.D. Number: 08125 Name: ABC Tech Corp Registered Address: Mumbai, India Work Address: Mumbai. India Cell Phone: **?quot;-- Alt Phone: Email: *??　*?

  Client Profile Information:

  Sector: Financial

  Engaged in business from (date): 02 Jan 2020

  Sub-sector: Software-Cryptocurrency Exchange

  Expected Annual Transaction Amount: 125.000 USD

  Payment Nature: Transfer received from client's fund

  Received from: Clients

  Received for: Sale of digital assets

  The client identified themselves as "Cryptocurrency Exchange" Client has submitted the limited liability partnership deed. However, the bank's auditing team is unable to identify the client's exact business profile as the cryptocurrency exchange specified by the client as their major business awaits clearance from the country's regulator. The client has submitted documents/communications exchanged with the regulator and has cited the lack of governing laws in the country of their operation as the reason for the delay.

  Investigators determine the ultimate beneficial owner of ABC Tech Corp is a high-net-worth client. The client owns a real estate agency left to her when her spouse died. The spouse provided seed capital for ABC Tech Corp through a direct 1,000.000 Great British Pound (GBP) deposit.

  What additional information would trigger filing a SAR/STR?

  A. The client's spouse's source of wealth was a salary of 250,000 GBP per annum for the past 4 years and rental of properties of 150,000 GBP per annum for the past 6 years.
  B. The client's current net asset value is 8 million GBP, of which 7.5 million GBP was derived from the inheritance.
  C. An open-source search revealed that the client's spouse was a PEP.
  D. The funds for the seed capital were in the form of 50 cashier's checks of 10,000 GBP each and 50 money orders of 10,000 GBP.
  D. The funds for the seed capital were in the form of 50 cashier's checks of 10,000 GBP each and 50 money orders of 10,000 GBP.

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  Explanation/Reference:

  The additional information that would trigger filing a SAR/STR is the fact that the funds for the seed capital were in the form of 50 cashier's checks of 10,000 GBP each and 50 money orders of 10,000 GBP. This is because this indicates a possible attempt to avoid the reporting threshold of 10,000 GBP for cash transactions, which is a common money laundering technique known as structuring or smurfing12. The other options are not necessarily suspicious, as they do not involve cash transactions or indicate any illicit source of funds. The fact that the client's spouse was a PEP does not automatically make the transaction suspicious unless there are other red flags or risk factors associated with the PEP34 References: 1: Money Laundering Techniques 2: Structuring 3: Politically exposed person

  4: PEP Definition and Meaning - Merriam-Webster

• Question 42:

  Which scenarios are common to money laundering through online marketplaces and trade- based money laundering? (Select Two.)

  A. Over-valuation of the stated price of goods
  B. Use of fraudulent letters of credit
  C. No evidence of delivery of goods or shipping expenses
  D. Frequent conversion of foreign currency
  E. Use of multiple freight forwarding or export companies
  A. Over-valuation of the stated price of goods
  C. No evidence of delivery of goods or shipping expenses
  E. Use of multiple freight forwarding or export companies

• Question 43:

  The investigations team of a financial institution (Fl) wants to perform enhanced due diligence measures on operations done by a foreign bank related to transactions of companies that export scrap gold and silver. What would be the next best steps for the investigations team? (Select Two.)

  A. Ask the legal department if it can proceed to rescind the contract of the correspondent banking relationship since the export of scrap gold and silver is a high-risk activity.
  B. Ask the respondent bank if it has a risk rating for the exporting companies, if the customer profiles are updated, and if so. when was the last time it was done.
  C. Ask the respondent bank if the exporting companies have obtained an official license that permits the exporting of scrap gold and silver.
  D. Ask the respondent bank if it can file a SAR/STR in its jurisdiction since the investigations team also plans to do the same in the Fl's home country.
  E. Ask the business manager who handles the relationship of the respondent bank if they can persuade the bank to close the accounts of the export companies.
  B. Ask the respondent bank if it has a risk rating for the exporting companies, if the customer profiles are updated, and if so. when was the last time it was done.
  C. Ask the respondent bank if the exporting companies have obtained an official license that permits the exporting of scrap gold and silver.

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  Explanation/Reference:

  The correct answers are B and C because these are the most relevant and reasonable steps for the investigations team to perform enhanced due diligence on the operations of the foreign bank and its customers. Asking for the risk rating, customer profiles, and official licenses would help the team assess the level of risk and compliance of the foreign bank and its customers, who are engaged in a high-risk activity of exporting scrap gold and silver. The other options are not appropriate because they are either premature or ineffective. Rescinding the contract, filing a SAR/STR, or closing the accounts would require more evidence and justification, and they may also damage the relationship with the foreign bank. References: : Precious Metals and Stones

• Question 44:

  An investigator is reviewing an alert for unusual activity. System scanning detected a text string within a company customer's account transactions that indicates the account may have been used for a drug or drug paraphernalia purchase Based on the KYC profile, the investigator determines the customer's company name and business type are marketed as a gardening supplies company. The investigator reviews the account activity and notes an online purchase transaction that leads the investigator to a website that sells various strains of marijuana. Additional account review detects cash deposits into the account at the branch teller lines, so the investigator reaches out to the teller staff regarding the transactions. The teller staff member reports that the business customers have frequently deposited cash in lower amounts. The teller, without prompting, adds that one of the transactors would occasionally smell of a distinct scent of marijuana smoke.

  Which are the best next steps for the investigator to take? (Select Three.)

  A. Review the customer's transaction history.
  B. Request information from the internet service provider who hosts the website.
  C. Check internal KYC information.
  D. Research other customer accounts for transactions to the same website. E Conduct adverse media and open-source searches on the customer's background.
  E. Identify if the customer has opened accounts in an urban city area.
  A. Review the customer's transaction history.
  C. Check internal KYC information.
  E. Identify if the customer has opened accounts in an urban city area.

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  Explanation/Reference:

  The best next steps for the investigator to take are:

  A. Review the customer's transaction history. This can help the investigator identify any patterns or anomalies in the customer's account activity, such as changes in transaction volume, frequency, amount, source, destination, purpose, etc. The investigator can also compare the customer's transaction history with their KYC profile and risk rating to assess if there are any discrepancies or inconsistencies. C. Check internal KYC information. This can help the investigator verify the customer's identity, business nature, ownership structure, expected activity, source of funds, etc. The investigator can also update or enhance the customer's KYC information based on any new or relevant information obtained from other sources. E Conduct adverse media and open-source searches on the customer's background. This can help the investigator find out if there is any negative or adverse information about the customer in public data sources, such as news articles, social media posts, blogs, forums, etc. Adverse media and open-source searches can also provide additional context and insight into the customer's reputation, behavior, associations, etc. The other options are incorrect because:

  B. Request information from the internet service provider who hosts the website is not feasible, as it may require a legal process or a court order to obtain such information. Moreover, the internet service provider may not have or disclose any useful information about the website or its owner.

  D. Research other customer accounts for transactions to the same website is not relevant, as it may not provide any meaningful information about the customer under investigation. Furthermore, it may violate the privacy and confidentiality of other customers who are not related to the investigation.

  F. Identify if the customer has opened accounts in an urban city area is not helpful, as it may not have any bearing on the customer's involvement in a drug or drug paraphernalia purchase. Additionally, it may not be possible to access or verify such information without the customer's consent or authorization. References: Advanced CAMS-FCI Certification | ACAMS, Section 2: Investigating Financial Crimes, page 11 Leading Complex Investigations Certificate | ACAMS, Module 3: Conducting Research and Analysis, page 6 Adverse Media Screening - Using AI to Mitigate Risk Legal requirements for adverse media screening - Thomson Reuters Electronic client due diligence | Ethics helpsheets | ICAEW 6AMLD and FATF: Where Adverse Media Screening Fits In Free Adverse Media Check | NameScan

• Question 45:

  During transaction monitoring. Bank A learns that one of their customers. Med Supplies 123, is attempting to make a payment via wire totaling 382,500 USD to PPE Business LLC located in Mexico to purchase a large order of personal

  protective equipment. specifically surgical masks and face shields. Upon further verification. Bank A decides to escalate and refers the case to investigators.

  Bank A notes that, days prior to the above transaction, the same customer went to a Bank A location to wire 1,215,280 USD to Breath Well LTD located in Singapore. Breath Well was acting as an intermediary to purchase both 3-ply surgical

  masks and face shields from China. Bank A decided not to complete the transaction due to concerns with the involved supplier in China. Moreover, the customer is attempting to send a third wire in the amount of 350,000 USD for the

  purchase of these items, this time using a different vendor in China. The investigator must determine next steps in the investigation and what actions, if any.

  should be taken against relevant parties.

  Upon further investigation. Bank As investigator learns that both the Mexico- and Singapore-based companies are linked to the alleged suppliers in China. Which additional indicators would the investigator need to identify to determine if this

  fits a fentanyl (drug) trafficking typology? (Select Two.)

  A. Review of the invoices and transportation documents, provided by the customer, reveal significant discrepancies between the description of goods. Internet research reveals that suppliers are newly established companies with no history of sales of medical equipment.
  B. Review of the account activity reveals that wires were mainly funded by multiple cash deposits, conducted in amounts of 10.000 USD or below.
  C. Review of the Food and Drug Administration (FDA) product certifications provided by the customer reveals that documents were falsified.
  D. Review of the account activity reveals that account is inconsistent with the expected business activity as it shows multiple charges at various hotels, transportation tickets for unrelated 3rd parties, etc.
  A. Review of the invoices and transportation documents, provided by the customer, reveal significant discrepancies between the description of goods. Internet research reveals that suppliers are newly established companies with no history of sales of medical equipment.
  C. Review of the Food and Drug Administration (FDA) product certifications provided by the customer reveals that documents were falsified.

• Question 46:

  How does the Asian/Pacific Financial Action Task Force -Style Regional Body help its members implement recommendations from the FATF? (Select Two.)

  A. Promotes laws that allow judicial challenges to seizure orders by an administrative body
  B. Endorses regulations that define money laundering based on the model laws issued by the respective member states
  C. Facilitates the adoption and implementation of internationally accepted AMI measures by member jurisdictions
  D. Encourages cooperative AML efforts in the region
  E. Requires members to maintain lists of regional money laundering and terrorists financing issues relevant to their region
  C. Facilitates the adoption and implementation of internationally accepted AMI measures by member jurisdictions
  D. Encourages cooperative AML efforts in the region

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  Explanation/Reference:

  The Asian/Pacific Financial Action Task Force-Style Regional Body (APG) helps its members implement recommendations from the FATF by facilitating the adoption and implementation of internationally accepted AML measures by member jurisdictions (CAMS Manual, 6th Edition, Page 22). The APG also encourages cooperative AML efforts in the region, which can include information-sharing and mutual evaluations to assess member compliance with FATF recommendations (CAMS Manual, 6th Edition, Page 25). Therefore, options C and D are the correct answers.

• Question 47:

  Potential indicators of money laundering associated with Trust and Company Service Providers include: (Select Two.)

  A. use of legal persons in jurisdictions with strict secrecy laws.
  B. structuring cash deposits into third party accounts.
  C. multi-jurisdictional wire transfers with no legal purpose.
  D. generation of rental income to legitimize illicit funds.
  E. frequent deposits to or withdrawals from bank accounts.
  A. use of legal persons in jurisdictions with strict secrecy laws.
  C. multi-jurisdictional wire transfers with no legal purpose.

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  Explanation/Reference:

  This is stated in the Certified Anti-Money Laundering Specialist (the 6th edition) manual on page 595, which states: "Potential indicators of money laundering associated with Trust and Company Service Providers include the use of legal persons in jurisdictions with strict secrecy laws, structuring cash deposits into third party accounts, multi-jurisdictional wire transfers with no legal purpose, and frequent deposits to or withdrawals from bank accounts."

• Question 48:

  A retail bank prepares a yearly AML risk assessment. Which inherent risk factor is likely the most relevant?

  A. The provision of remote check deposit services
  B. The provision of cash services
  C. The provision of payable through accounts
  D. The provision of brokerage services
  B. The provision of cash services

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  Explanation/Reference:

  Retail banks typically have a high inherent risk of money laundering due to their provision of cash services. This is because cash is a preferred medium of exchange for criminals and terrorists, and retail banks provide a convenient way for them to move large sums of money without detection. Retail banks are also vulnerable to money laundering through the use of false identities and other deceptive practices. (CAMS Manual, 6th Edition, Page 8).

• Question 49:

  An unusual spike in activity has occurred for a customer who is a supplier of aviation parts to a military force. The customer's current line of business is consistent with the banks records, and no adverse media hits have occurred. Which is the best reason for an investigator to continue an investigation?

  A. The end-user is a military force.
  B. There are no adverse media hits.
  C. The customer is a supplier of aviation parts.
  D. The current line of business is consistent with the bank's records.
  A. The end-user is a military force.

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  Explanation/Reference:

  The best reason for an investigator to continue an investigation is that the end-user is a military force. This is because supplying aviation parts to a military force may involve sanctions risk, export control risk, or human rights risk, depending on the nature and destination of the military force. The investigator should conduct further due diligence to determine if the customer is complying with the relevant laws and regulations, and if the bank is exposed to any reputational or legal risk by providing services to the customer.

  References:

  Former Airline Employee and Aircraft Part Sellers Charged in Kickback ... Former Airline Employee and Aircraft Part Sellers Charged in Kickback ... Former airline employee and aircraft part sellers charged in kickback ...

• Question 50:

  An investigator receives an alert documenting a series of transactions. A limited liability corporation (LLC) wired 59.000.000 USD to an overseas account associated with a state- run oil company. A second account associated with the state-run oil company wired 600,000,000 USD to the LLC. The LLC then wired money to other accounts, a money brokerage firm, and real estate purchases.

  The investigator initiated an enhanced KYC investigation on the LLC. The financial institution opened the LLC account a couple weeks prior to the series of transactions. The names associated with the LLC had changed multiple times since the account opened. A search of those names revealed relations with multiple LLCs. Public records about the LLCs did not show any identifiable business activities.

  Open-source research identified mixed reports about the brokerage firm. The firm indicated it purchased mutual funds for its clients and dispensed returns to clients. Media reports claimed the firm laundered money by holding money for a fee before returning it to investors.

  What is the total suspicious transaction amount that the investigator should report?

  A. 600,000,000 USD
  B. 59,000,000 USD
  C. 541.000,000 USD
  D. 659,000,000 USD
  D. 659,000,000 USD

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  Explanation/Reference:

  The total suspicious transaction amount that the investigator should report is 659,000,000 USD. This is the sum of the two transactions involving the LLC and the state- run oil company, which are 59,000,000 USD and 600,000,000 USD respectively. The other transactions that the LLC made to other accounts, a money brokerage firm, and real estate purchases are not relevant to the question, as they are not part of the series of transactions that triggered the alert. References: Advanced CAMS-FCI Certification | ACAMS