ACAMS ACAMS Certifications CAMS Questions & Answers

• Question 301:

  Which customer action would an insurance company consider to be a red flag for money laundering?

  A. Concern over the cancellation of the policy

  B. Lack of concern about the cost of the policy

  C. Repayments are consistent with the source of income

  D. Identifying beneficiaries of the policy

  Correct Answer: B

• Question 302:

  When a financial institution (FI) is requested to provide data and information to a law enforcement agency for matters related to financing of terrorism, assistance:

  A. can be refused on the ground of bank secrecy.

  B. cannot be refused on the ground of bank secrecy.

  C. can be refused on the ground of tipping-off.

  D. cannot be refused on the ground of tipping-off.

  Correct Answer: B

• Question 303:

  A Money Laundering Reporting Officer's (MLRO) lack of action led to deficiencies in the bank's AML program and a civil monetary penalty being levied against the MLRO. Why was this direct action taken against the MLRO?

  A. The MLRO is the only individual that can be held responsible for AML program deficiencies.

  B. MLROs can be held to an individual accountability standard and face potential penalties for contributing to AML program deficiencies.

  C. The MLRO agreed to the civil penalty so that the bank would not be found liable for the AML program deficiencies.

  D. Action was brought against the MLRO because banks cannot be found liable for AML program deficiencies.

  Correct Answer: B

• Question 304:

  What are four key elements that a KYC program should contain according to the Basel Committee requirements?

  A. Customer onboarding, sanction monitoring, customer acceptance, customer due diligence

  B. Customer identification, risk assessment, customer screening, monitoring

  C. Customer onboarding, risk monitoring, customer acceptance, enhanced due diligence

  D. Customer identification, risk management, customer acceptance, monitoring

  Correct Answer: D

• Question 305:

  A law enforcement agent is conducting an investigation into a possible money laundering event. During the investigation, the officer will use:

  A. the follow the money approach.

  B. confirmed evidence obtained from financial intelligence units.

  C. a process to identify suspicious activity.

  D. a risk-based approach alert generating system.

  Correct Answer: A

• Question 306:

  Which is a key goal of EU Directives on money laundering?

  A. Establish a consistent regulatory environment across the EU to prevent money laundering

  B. Address control of payments in EU countries to reduce money laundering

  C. Allow member states to discuss the draft legislation with the cooperation of the EU Financial Intelligence Units (FIUs)

  D. Build a network of financial institutions (FIs) that work together to prevent money laundering across the EU

  Correct Answer: A

• Question 307:

  What type of information is received by government Financial Intelligence Units (FIUs)?

  A. STRs

  B. Client name screening results

  C. Compliance frameworks

  D. Politically Exposed Persons (PEPs) registrations

  Correct Answer: A

• Question 308:

  A Money Laundering Reporting Officer (MLRO) was aware that a strategically important client of the bank was sending money to human traffickers. However, the MLRO did not report the activity to law enforcement or move to exit the relationship. What is the legal term for the activity the MLRO engaged in?

  A. Avoidance

  B. Circumvention

  C. Negligent conduct

  D. Willful blindness

  Correct Answer: D

• Question 309:

  An AML training program should include which requirement?

  A. New tellers should receive training after their first year on the identification of suspicious or unusual activity.

  B. New lending staff should receive annual training on the preparation of currency transaction reporting.

  C. New staff should receive training during employee orientation or shortly thereafter on bank procedures.

  D. New operational staff should receive training shortly after hire on currency transaction reporting exemptions.

  Correct Answer: C

• Question 310:

  Which action by a prospective customer during the account opening process requires further investigation?

  A. Listing a long-distance phone number

  B. Questioning reporting requirements

  C. Expressing knowledge of the financial industry

  D. Providing driver's license

  Correct Answer: B

  Reference: https://www.sec.gov/about/offices/ocie/amlsourcetool.htm