ACAMS CAMS Online Practice Questions and Exam Preparation

ACAMS CAMS Online Questions & Answers

• Question 301:

  Which of the following are included in the 11 Immediate Outcomes outlined in the Financial Action Task Force (FATF) methodology for assessing technical compliance with the FATF Recommendations and the effectiveness of AML/CFT/CPF systems during mutual evaluations? (Select Three.)

  A. International cooperation provides actionable information to use against criminals.
  B. Supervisors regulate financial institutions and non-bank financial institutions and their risk-based AML /CFT programs.
  C. Financial intelligence information is collected by authorities and shared with the FATF for further investigation.
  D. Those convicted of money laundering offenses are denied access to basic banking services.
  E. Money laundering offenses are investigated and criminally prosecuted.
  A. International cooperation provides actionable information to use against criminals.
  B. Supervisors regulate financial institutions and non-bank financial institutions and their risk-based AML /CFT programs.
  E. Money laundering offenses are investigated and criminally prosecuted.

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  The FATF Immediate Outcomes (IOs) measure the effectiveness of AML/CFT frameworks in jurisdictions. Option A (Correct): International cooperation is key to combating financial crime, as outlined in Immediate Outcome 2 . Option B (Correct): Effective regulation of financial institutions is part of Immediate Outcome 3 , which ensures compliance with AML laws. Option E (Correct): Investigation and prosecution of money laundering offenses align with Immediate Outcome 7 . Option C (Incorrect): FATF itself does not conduct investigations; FIUs share intelligence with domestic and international agencies. Option D (Incorrect): While financial criminals face legal consequences, there is no global mandate to restrict their access to banking.

• Question 302:

  A key element required to ensure an anti-money laundering compliance program is effectively embedded into an institution's culture is

  A. an internal audit.
  B. ongoing training.
  C. peer review.
  D. a record retention policy.
  B. ongoing training.

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  According to the Anti-Money Laundering Specialist (the 6th edition) study guide, ongoing training is a key element of an effective anti-money laundering compliance program, as it ensures that the staff are aware of their roles and responsibilities, the latest regulatory developments, and the emerging risks and trends in money laundering and terrorist financing1. Ongoing training also helps to foster a culture of compliance within the institution, where the staff are committed to adhering to the policies and procedures, detecting and reporting suspicious activities, and protecting the institution from reputational and legal damages2. References: 1: CAMS Study Guide, 6th Edition, Chapter 2, Section 2.5, page 53 2: CAMS Study Guide, 6th Edition, Chapter 2, Section 2.6, page 54

• Question 303:

  A team overseeing the governance and effectiveness of a bank's transaction monitoring approach should implement which strategies? (Select Two.)

  A. Periodic review of suspicious activity reports (SARs) filed with FinCEN to determine whether any should be withdrawn.
  B. Periodic and ad hoc cooperation with the legal team to appropriately investigate and monitor the transactions of subjects of subpoenas or government inquiries.
  C. Periodic review of client profiles to ensure that the most up-to-date information is on file for high- risk clients in line with the bank's internal policies and procedures.
  D. Periodic review of the transaction monitoring scenarios and their productivity to ensure that appropriate AML typologies are reflected.
  B. Periodic and ad hoc cooperation with the legal team to appropriately investigate and monitor the transactions of subjects of subpoenas or government inquiries.
  D. Periodic review of the transaction monitoring scenarios and their productivity to ensure that appropriate AML typologies are reflected.

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  Transaction monitoring governance involves ensuring that AML detection systems are effective, aligned with regulatory standards, and capable of identifying evolving threats. Option B (Correct): Legal cooperation is essential for responding to subpoenas and law enforcement inquiries. Option D (Correct): Regularly updating transaction monitoring scenarios ensures that the system adapts to emerging financial crime trends. Why Other Options Are Incorrect: Option A (Incorrect): SARs cannot be withdrawn unless an error was made--once filed, SARs remain confidential and must be retained. Option C (Incorrect): Client profile updates are a CDD/KYC function, not directly related to transaction monitoring governance. Best Practices for Transaction Monitoring Governance: Regularly review system effectiveness through validation tests. Collaborate with legal and compliance teams for risk mitigation. Use AI and data analytics to refine detection accuracy.

• Question 304:

  Which red flags should be considered prior to establishing a relationship with a third party? (Select Two.)

  A. The third party has a lack of anti-corruption compliance clauses in agreements.
  B. The third party's amount to be paid for goods and services appears to be reasonable.
  C. The third party has requested unusual payment or billing procedures.
  D. The third party has a declaration of non-family or business ties with government officials.
  E. The third party has sufficient capability to provide the services or goods for which it is being engaged.
  A. The third party has a lack of anti-corruption compliance clauses in agreements.
  C. The third party has requested unusual payment or billing procedures.

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  The red flags that should be considered prior to establishing a relationship with a third party are the lack of anti-corruption compliance clauses in agreements (A) and unusual payment or billing procedures requested by the third party (C). According to the Certified Anti-Money Laundering Specialist (CAMS) Sixth Edition manual, "red flags include, but are not limited to: [...] lack of anti-corruption compliance clauses in agreements (page 330) and unusual payment or billing procedures requested by the third party (page 331)."

• Question 305:

  What should a bank focus on to ensure on-going compliance with its AML program?

  A. It should ensure that it develops and provides on-going targeted training of all current and new employees
  B. It should subject all new employees to criminal background checks before being hired
  C. It should review and update its transaction monitoring system
  D. It should ensure that the regulators have reviewed and have approved the bank's AML program
  A. It should ensure that it develops and provides on-going targeted training of all current and new employees

• Question 306:

  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
  C. Verify that the reported officer was an actual authorized representative

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  According to the ACAMS study guide, one of the best practices for dealing with law enforcement inquiries is to verify the identity and authority of the law enforcement officer before providing any information (p. 224). This is to ensure that the inquiry is legitimate and not a phishing attempt or a breach of confidentiality. The compliance officer should also document the inquiry and the information provided, and consult with legal counsel if necessary. The other options are not appropriate, as they may either violate the law, compromise the investigation, or create unnecessary work. References: ACAMS. (2020). Study Guide for the Certification Examination for Anti-Money Laundering Specialists (6th ed.). Miami, FL: ACAMS. What Is An AML Officer1

• Question 307:

  Which of the following is a core function of a Financial Intelligence Unit (FIU) as described in FATF Recommendation 29 ?

  A. Serving as a national center for the collection and analysis of suspicious activity .
  B. Prosecuting significant cases of money laundering or terrorist financing under national jurisdiction.
  C. Sponsoring the research and development of advanced technological surveillance tools for AML investigations.
  D. Sharing real-time criminal intelligence gathered from national law enforcement agencies with the private sector.
  A. Serving as a national center for the collection and analysis of suspicious activity .

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  A Financial Intelligence Unit (FIU) acts as the central hub for AML/CFT intelligence in a country. Option A (Correct): FIUs collect, analyze, and disseminate financial intelligence related to suspicious transactions to law enforcement and regulators. Option B (Incorrect): FIUs do not prosecute cases ; they refer cases to law enforcement for prosecution. Option C (Incorrect): FIUs analyze data but do not develop surveillance technology . Option D (Incorrect): FIUs share intelligence with authorized entities , but not real-time criminal data with the private sector. Types of FIUs: FIU Model Description Example Administrative FIU Operates under a government agency or central bank . FinCEN (USA), AUSTRAC (Australia) Law Enforcement FIU Operates within a law enforcement body . UK NCA (UK), IMPA (Israel) Judicial FIU Operates within a judicial authority . Belgium CTIF-CFI Why FIUs Are Important: They bridge the gap between banks, regulators, and law enforcement. They ensure confidential handling of SARs. They support domestic and international cooperation in AML/CFT efforts.

• Question 308:

  Which piece of information identified by customer screening would be the most likely reason to trigger consideration of exiting a business relationship with a customer because of financial crime concerns?

  A. The customer is a shareholder of a corporation declared bankrupt.
  B. The customer is linked to an organized crime group.
  C. The customer is a politically exposed person (PEP).
  D. The customer allegedly violated a construction permit limit.
  B. The customer is linked to an organized crime group.

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  Financial institutions must screen customers against adverse information and determine whether they pose a significant financial crime risk. Option B (Correct): A direct link to an organized crime group is a severe red flag. Organized crime networks engage in money laundering, corruption, and other illicit activities. Under FATF Recommendations 10 and 12 , financial institutions must implement enhanced due diligence (EDD) for high-risk customers and consider account closure if they pose undue risk. Option A (Incorrect): Bankruptcy does not necessarily indicate financial crime risk, though it may raise financial stability concerns. Option C (Incorrect): While PEPs pose a higher risk for corruption, financial institutions typically apply EDD rather than immediately terminating the relationship. Option D (Incorrect): Violating a construction permit is a regulatory issue, not directly linked to financial crime.

• Question 309:

  What is a tool governments and multi-national bodies can use to prevent the proliferation of weapons of mass destruction?

  A. Economic Sanctions
  B. Commission Rogatoire
  C. Account Monitoring Order
  D. Mutual Legal Assistance Treaties
  A. Economic Sanctions

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  Economic sanctions are a tool that governments and multi-national bodies can use to prevent the proliferation of weapons of mass destruction (WMDs) by imposing restrictions on trade, financial transactions, travel, or other activities with targeted countries, entities, or individuals that are involved or suspected of being involved in WMD programs. Economic sanctions aim to disrupt the supply chains, funding sources, and incentives for developing or acquiring WMDs, as well as to deter and punish any violations of international norms and obligations regarding WMDs. Economic sanctions can be imposed unilaterally by a country or multilaterally by a group of countries or an international organization, such as the United Nations, the European Union, or the Financial Action Task Force. References: ACAMS CAMS Certification Video Training Course, Module 4: Preventing the Proliferation of Weapons of Mass Destruction, Lesson 4.2: Sanctions1 ACAMS CAMS Certification Study Guide, 6th Edition, Chapter 4: Preventing the Proliferation of Weapons of Mass Destruction, Section 4.2: Sanctions2

• Question 310:

  Trusts established in certain offshore jurisdictions make good vehicles to lay under money for which ofthe following reasons?

  A. Names of the settlor and beneficiaries are into publicly available.
  B. Trusts are typically set up to minimize taxes.
  C. Offshore jurisdictions are unfamiliar with trust.
  D. Trusts may hold assets of significant size.
  A. Names of the settlor and beneficiaries are into publicly available.

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  it describes a reason why trusts established in certain offshore jurisdictions make good vehicles to layer money, which is names of the settlor and beneficiaries are not publicly available. This means that the true owners and controllers of the funds or assets held by the trust are hidden from the public and the authorities, and can only be accessed by the trustee or the protector, who may be complicit or unaware of the money laundering scheme. This creates a high level of anonymity and secrecy for the money launderers, who can use the trust to move, disguise, or conceal the origin and destination of their illicit funds. The other options are not necessarily reasons why trusts established in certain offshore jurisdictions make good vehicles to layer money, although they may have some advantages or disadvantages depending on the circumstances and the risk profile of the customers and countries involved. Option B describes a possible motive for setting up a trust in an offshore jurisdiction, which is to minimize taxes, but this does not imply that the trust is used to layer money, as there may be legitimate tax planning or optimization purposes. Option C describes a possible challenge or obstacle for setting up a trust in an offshore jurisdiction, which is offshore jurisdictions are unfamiliar with trust, but this does not imply that the trust is used to layer money, as there may be other legal or financial vehicles available in those jurisdictions. Option D describes a possible characteristic or feature of a trust, which is trusts may hold assets of significant size, but this does not imply that the trust is used to layer money, as there may be valid reasons or sources for the large assets. References: ACAMS CAMS Certification Video Training Course - 6th Edition1 Exam CAMS: Certified Anti-Money Laundering Specialist (the 6th edition)2 ACAMS CAMS Study Guide - 6th Edition, Chapter 4, pages 86-87 https:// www.acams.org/wp-content/uploads/2019/09/ACAMS-CAMS-Study-Guide-6th-Edition-Chapter-4.pdf