ACAMS CAMS Online Practice Questions and Exam Preparation

ACAMS CAMS Online Questions & Answers

• Question 101:

  What is the goal of the Egmont Group in providing a forum for Financial Intelligence Units (FIUs) around the world?

  A. To improve international laws to combat money laundering and the financing of terrorism and foster the implementation of domestic programs.
  B. To provide a forum for FIUs to improve cooperation in the fight against money laundering and the financing of terrorism and to foster the implementation of domestic programs in this field.
  C. To improve communication with law enforcement in the fight against money laundering and the financing of terrorism and to foster the implementation of domestic programs in this field.
  D. To improve cooperation with state and federal governments in the fight against money laundering and the financing of terrorism and to foster the implementation of domestic programs in this field.
  B. To provide a forum for FIUs to improve cooperation in the fight against money laundering and the financing of terrorism and to foster the implementation of domestic programs in this field.

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  According to the web search results, the Egmont Group is a united body of 170 Financial Intelligence Units (FIUs) that provides a platform for FIUs to securely exchange expertise and financial intelligence to combat money laundering, terrorist financing, and associated predicate offences12. The goal of the Egmont Group is to provide a forum for FIUs around the world to improve support to their respective governments in the fight against money laundering, terrorist financing, and other financial crimes345. The other options are not correct because they either do not capture the full scope of the Egmont Group's activities, or they are not the primary focus of the Egmont Group. References: https://egmontgroup.org/ https://2009-2017.state.gov/j/inl/rls/nrcrpt/2015/vol2/239473.htm\ https://en.wikipedia.org/wiki/Egmont_Group_of_Financial_Intelligence_Units

• Question 102:

  The compliance department receives an internal referral that appears to indicate terrorist financing. What is the first step that should be taken in the investigation process?

  A. Notify the Board of Directors.
  B. Immediately file a suspicious activity report.
  C. Gather background and transaction information.
  D. Exit the relationship.
  C. Gather background and transaction information.

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  According to the 6th edition Certified Anti-Money Laundering Specialist Study Guide, when the compliance department receives an internal referral that appears to indicate terrorist financing, the first step in the investigation process should be to gather background and transaction information. This includes obtaining customer identification and verifying customer data, obtaining additional information about the customer and the transaction, and reviewing the transaction activity. This information will help to determine if the referral is accurate and if further action is needed.

• Question 103:

  What should a bank do if it suspects one of its employees may be involved in mortgage loan fraud?

  A. File a suspicious activity report on the employee's activities if management thinks it is suspicious.
  B. Conduct an investigation by gathering and analyzing information on the employee.
  C. Automatically file a police report about the employee's potential misconduct.
  D. Initiate civil litigation against the employee to recover damages for losses incurred.
  B. Conduct an investigation by gathering and analyzing information on the employee.

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  According to the ACAMS Study Guide for the CAMS Certification Exam (6th edition), page 215, one of the best practices for banks to prevent and detect mortgage fraud is to conduct internal investigations when there are red flags or suspicions of fraud involving bank employees. The investigation should include reviewing the employee's loan files, interviewing the employee and other relevant parties, verifying the information and documents provided by the employee, and documenting the findings and actions taken. Filing a suspicious activity report (SAR) may be appropriate after the investigation is completed and the bank has reasonable grounds to suspect fraud. Filing a police report or initiating civil litigation may also be options depending on the outcome of the investigation and the bank's policies, but they are not the first steps to take when the bank suspects an employee of mortgage fraud.

• Question 104:

  What types of things should an institution incorporate in it AML policies and procedures? Choose 3 answers

  A. On-going training, as well as initial training of new employees
  B. Periodic audits, to be performed by independent staff at least once a year
  C. Ability to incorporate relevant legislative and regulatory AML changes
  D. Review of the AML policy by the Board of Directors
  A. On-going training, as well as initial training of new employees
  B. Periodic audits, to be performed by independent staff at least once a year
  C. Ability to incorporate relevant legislative and regulatory AML changes

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  An institution should incorporate on-going training, periodic audits, and ability to incorporate relevant legislative and regulatory AML changes in its AML policies and procedures. These are essential elements of an effective AML program, as they ensure that the staff are aware of their roles and responsibilities, the institution is compliant with the applicable laws and regulations, and the AML program is updated and adapted to the changing risks and environment. References: CAMS Certification Package - 6th Edition | ACAMS1 CAMS Certifications: How to Get CAMS Certified | ACAMS2 Exam CAMS: Certified Anti-Money Laundering Specialist (the 6th edition)4

• Question 105:

  Which is a characteristic of the Financial Action Task Force (FATF) 40 recommendations?

  A. They enable FATF's active engagement in law enforcement matters, investigations, or prosecutions.
  B. They are automatically transposed into local law across the EU member states and the US.
  C. They provide a list of mandatory requirements for an effective AML regulatory framework.
  D. They comprise global standards for countering money laundering, recognized by government bodies across the world.
  D. They comprise global standards for countering money laundering, recognized by government bodies across the world.

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  The characteristic of the Financial Action Task Force (FATF) 40 recommendations is that they comprise global standards for countering money laundering, recognized by government bodies across the world. The FATF 40 recommendations provide a comprehensive framework of measures that countries should implement to combat money laundering and terrorist financing. The recommendations are not mandatory, but are widely recognized and followed by countries across the globe. The recommendations cover a range of areas, including customer due diligence, record-keeping, suspicious activity reporting, and international cooperation.

• Question 106:

  A prospective AML officer comes highly recommended by a banks up-stream correspondent institution of similar size and make-up, located in a different city in the same country. The bank is interested in hiring the individual. What should be the next step taken by the Board of Directors?

  A. Do a thorough background check
  B. Confer with its regulatory agency to determine whether it is appropriate to hire the person
  C. Hire the individual, relying on the recommendation of its correspondent
  D. Hire the individual on a probationary basis so that the institution can determine if the individual is sufficiently experienced and capable
  A. Do a thorough background check

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  According to the Anti-Money Laundering Specialist (the 6th edition) study guide, one of the best practices for hiring an AML officer is to do a thorough background check, including verifying the candidate's credentials, qualifications, references, and reputation1. This is because the AML officer plays a crucial role in ensuring the compliance and integrity of the financial institution, and therefore must have the necessary skills, knowledge, experience, and ethics to perform the job effectively and professionally. A background check can also help to identify any potential conflicts of interest, criminal records, or regulatory sanctions that may affect the candidate's suitability for the position1. The other options are incorrect because: B. Confering with the regulatory agency may not be necessary or appropriate, as the hiring decision is ultimately the responsibility of the financial institution, and the regulatory agency may not have any specific or relevant information or guidance on the candidate2. C. Hiring the individual, relying on the recommendation of the correspondent, may not be sufficient or prudent, as the correspondent may have different standards, expectations, or interests than the financial institution, and may not have conducted a comprehensive or objective assessment of the candidate3. D. Hiring the individual on a probationary basis may not be feasible or fair, as the AML officer role requires a high level of trust, authority, and responsibility, and the financial institution may not be able to evaluate the candidate's performance or potential in a short period of time4. References: 1: ACAMS, CAMS Certification Package - 6th Edition, Chapter 5, page 147 2: ACAMS, CAMS Certification Package - 6th Edition, Chapter 5, page 148 3: ACAMS, CAMS Certification Package - 6th Edition, Chapter 5, page 147 4: ACAMS, CAMS Certification Package - 6th Edition, Chapter 5, page 148

• Question 107:

  Which of the following employee behaviors would not trigger an AML red flag?

  A. An employee lives a lavish lifestyle that could not be supported by his or her salary.
  B. An employee is involved in an excessive number of unresolved exceptions.
  C. An employee uses company resources to further private interests.
  D. An employee generates high earnings on investments made on the stock market.
  D. An employee generates high earnings on investments made on the stock market.

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  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.

• Question 108:

  A law enforcement agency is reviewing a suspicious transaction report (STR) filed by a financial institution for suspicious activity on a client's account.

  Subsequently, the agency requests further information.

  Which supporting documentation might the law enforcement agency request from the institution to facilitate its investigation?

  A. Previously filed STRs on the same customer
  B. Account opening documents and account statements
  C. Copies of promotional materials sent to the customer
  D. A copy of the institution's STR policy and procedures
  B. Account opening documents and account statements

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  account opening documents and account statements are examples of supporting documentation that can help the law enforcement agency to verify the identity, profile, and activity of the customer involved in the suspicious transaction. These documents can provide useful information such as the customer's name, address, date of birth, identification number, occupation, source of funds, transaction history, and beneficiaries. These documents can also help to establish the baseline of normal and expected activity for the customer, and to identify any deviations or anomalies that may indicate money laundering, fraud, or other criminal activities. References: Suspicious Activity Report Supporting Documentation, section "What Constitutes Supporting Documentation", paragraph 2: "Supporting documentation may include, for example, transaction records, new account information, tape recordings, e-mail messages, and correspondence." Documentation Requirements: Suspicious Activity Report Supporting Documentation, section "SARs Documentation Requirements", paragraph 2: "Keep all documents with evidence of the background, the purpose of the transactions, the trigger, the investigation carried out, and all findings and conclusions." BSA/AML Manual, section "Assessing the BSA/AML Compliance Program - BSA Compliance Officer", paragraph 3: "The BSA compliance officer is responsible for ensuring that the bank's BSA /AML compliance program is implemented effectively, including timely updates in response to changes in regulations or business activities, and for managing all aspects of the BSA/AML compliance program. The BSA compliance officer is also responsible for ensuring that the bank's BSA/AML compliance program is communicated to all personnel and that adequate training is provided to appropriate personnel."

• Question 109:

  In which two ways do Financial Action Task Force-style regional bodies influence anti-money laundering and terrorist financing standards within their respective regions? (Choose two.)

  A. They issue typologies specific to their geographical region.
  B. They administer mutual evaluations of participating members.
  C. They enforce the laws of the member countries in their geographic region.
  D. They require participating countries to adopt laws in line with their recommendations.
  A. They issue typologies specific to their geographical region.
  B. They administer mutual evaluations of participating members.

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  According to the Anti-Money Laundering Specialist (the 6th edition) study guide, the Financial Action Task Force (FATF) is an inter-governmental body that sets the global standards for anti-money laundering and counter-terrorist financing (AML/CTF). The FATF also monitors the compliance and implementation of its recommendations by its members and other jurisdictions. To enhance its global reach and effectiveness, the FATF works with nine FATF-style regional bodies (FSRBs) that cover different regions of the world. These FSRBs have similar objectives and functions as the FATF, but they also take into account the specific characteristics and challenges of their regions. Two ways that FSRBs influence AML/CTF standards within their respective regions are: They issue typologies specific to their geographical region. Typologies are reports or studies that analyze the methods, trends, and patterns of money laundering and terrorist financing in a particular sector, industry, or region. FSRBs produce typologies that reflect the regional context and risks of their members and provide guidance and best practices to address them. For example, the Asia/Pacific Group on Money Laundering (APG) has issued typologies on trade-based money laundering, wildlife trafficking, and virtual assets in the Asia-Pacific region12. They administer mutual evaluations of participating members. Mutual evaluations are peer reviews that assess the level of compliance and effectiveness of a country's AML/CTF system against the FATF standards. FSRBs conduct mutual evaluations of their members and publish the results and recommendations in detailed reports. These reports help identify the strengths and weaknesses of each country's AML/CTF regime and provide a basis for follow-up actions and technical assistance. For example, the Caribbean Financial Action Task Force (CFATF) has conducted mutual evaluations of its members such as Barbados, Jamaica, and Trinidad and Tobago34. References: Anti-Money Laundering Specialist (the 6th edition) study guide, page 27 APG website, section on Typologies Anti-Money Laundering Specialist (the 6th edition) study guide, page 28 CFATF website, section on Mutual Evaluations

• Question 110:

  How do drug traffickers and other criminals use the fine art industry to disguise illicit proceeds?

  A. They use forged or fraudulent invoicing of priceless works of art by auction houses
  B. They commingle legitimate and illicit proceeds by principals for payment of fine art
  C. They immediately resell priceless works of art after purchase from a foreign auction house
  D. They use anonymous agents to buy the art and have the payment wired from offshore havens
  D. They use anonymous agents to buy the art and have the payment wired from offshore havens