ACAMS CAMS Online Practice Questions and Exam Preparation

ACAMS CAMS Online Questions & Answers

• Question 361:

  What is a method of placement that can be used by a money launderer in a deposit taking institution?

  A. Depositing cash into the money launderer's account
  B. Sending a large number of funds transfers between accounts
  C. Withdrawing large amounts of cash from the money launderer's account
  D. Depositing cashier's checks and money orders into the money launderer's account
  A. Depositing cash into the money launderer's account

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  According to the ACAMS CAMS Study Guide, one of the most common methods of placement is to deposit cash into a bank account, either directly or through intermediaries. This allows the money launderer to introduce the illicit funds into the legitimate financial system, and to create a paper trail that can be used to justify the source of the funds. However, this method also exposes the money launderer to the risk of detection by the bank's anti-money laundering (AML) policies and procedures, such as customer identification, transaction monitoring, and reporting of suspicious activities1. References: ACAMS CAMS Study Guide, 6th Edition, page 271 Reference: https://www.investopedia.com/terms/m/moneylaundering.asp

• Question 362:

  A bank has maintained an account for a European charity for several years. The charity provides clothing to persons in need in various countries with active terrorists' cells. Which action by the charity indicates possible terrorist financing?

  A. The charity frequently withdraws cash from the bank
  B. The charity has branch locations located in various countries
  C. The charity receives cash donations primarily from European countries
  D. The charity maintains a bank account for non-business-related expenses
  A. The charity frequently withdraws cash from the bank

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  The charity frequently withdrawing cash from the bank indicates possible terrorist financing, as cash transactions are often used to conceal the source, destination, and purpose of funds. Cash transactions also make it difficult to trace the flow of funds and identify the beneficiaries. Terrorist financiers may use charities as a cover to collect and distribute funds for their activities, and may exploit the cash-based nature of charitable donations to avoid detection12. Reference: https://www.fatf-gafi.org/media/fatf/documents/reports/FATF%20Terrorist%20Financing%20Typologies%20Report.pdf

• Question 363:

  What 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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  FIUs act as central hubs for financial crime intelligence, receiving and analyzing Suspicious Activity Reports (SARs) and other data to support law enforcement. Option A (Correct): FIUs collect, analyze, and disseminate financial intelligence related to money laundering and terrorist financing . Option B (Incorrect): FIUs do not prosecute cases --they refer cases to law enforcement agencies for prosecution. Option C (Incorrect): FIUs analyze financial crime data but do not develop surveillance technology . Option D (Incorrect): FIUs share intelligence with law enforcement and regulatory bodies , not directly with private companies. Types of FIUs and Their Roles: A screenshot of a web page Description automatically generated Key FIU Responsibilities: Collect Suspicious Activity Reports (SARs) from financial institutions. Analyze financial transactions to identify money laundering patterns. Disseminate intelligence to law enforcement and regulatory authorities.

• Question 364:

  A precious metals dealer opens a new account with a bank. Which requires a referral to AML Investigations for further review?

  A. International outgoing wires to diamond dealers that are part of the diamond pipeline.
  B. Payments received on the account reference unknown companies in the instructions.
  C. International incoming payments from foreign companies in which the precious metals dealer has an established relationship.
  D. Multiple daily point of sale transactions from third parties that appear to be individuals.
  B. Payments received on the account reference unknown companies in the instructions.

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  payments received on the account that reference unknown companies in the instructions indicate a possible attempt to obscure the source or purpose of the funds. This could be a sign of money laundering, tax evasion, fraud, or other illicit activities. Such payments should be referred to AML Investigations for further review and verification of the identity and legitimacy of the companies involved. References: FATF Guidance on the Risk-Based Approach for Dealers in Precious Metals and Stones, page 18, paragraph 57: "The dealer should also pay attention to the information provided by the customer on the source and origin of the funds or assets, and verify it where possible. For example, the dealer should be alert to situations where the customer provides vague, incomplete or inconsistent information about the source and origin of the funds or assets, or where the information provided does not match with the customer's profile or business activity." Risk-Based Approach For Dealers in Precious Metals and Stones (DPMS), section "Business-based risk approach", sub-section "2- Geographical location": "You must also assess the geographical location of your business and the countries you deal with. You must be aware of the countries that are high-risk or non-cooperative jurisdictions as per the FATF recommendations. You must also consider the countries that are subject to sanctions, embargoes, or similar measures issued by the United Nations, the European Union, or any other relevant organization. You must also be careful of the countries that are known to have significant levels of corruption, organized crime, or terrorist activity." What are the Risks of Money Laundering for Precious Metals Dealers?, section "Money Laundering Red Flags for DPMS", bullet point 4: "The customer provides vague, incomplete, or inconsistent information about the source and origin of the funds or assets." Reference: https://www.imf.org/external/pubs/ft/tnm/2014/tnm1401a.pdf

• Question 365:

  What are two reasons physical certificates present a money laundering risk to broker-dealers? (Choose two.)

  A. The trade information on a physical certificate can be easily altered
  B. Physical certificates do not expire and may be held by the owner for perpetuity
  C. There is little information readily available to the broker confirming the source of the funds
  D. Physical certificates may be provided to nominees for deposit or settled in off-market transactions
  A. The trade information on a physical certificate can be easily altered
  D. Physical certificates may be provided to nominees for deposit or settled in off-market transactions

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  Physical certificates are documents that represent ownership of securities, such as stocks or bonds, that are issued by a company or a government. Physical certificates present a money laundering risk to broker-dealers for two reasons: The trade information on a physical certificate can be easily altered, such as the name of the owner, the date of issuance, or the number of shares. This can facilitate the concealment or falsification of the origin, ownership, or value of the securities, and enable the laundering of illicit funds through the purchase or sale of the securities. Physical certificates may be provided to nominees for deposit or settled in off-market transactions, such as private placements, bearer bonds, or direct transfers. This can bypass the normal reporting or recordkeeping requirements of the broker-dealer, and avoid the scrutiny or verification of the identity, source of funds, or beneficial ownership of the securities. References: Two Reasons Physical Certificates Pose Money Laundering Risks to Broker ... CAMS Certifications: How to Get CAMS Certified | ACAMS ACAMS Online Certificates | ACAMS

• Question 366:

  What is a primary responsibility of a financial intelligence unit?

  A. Provide expertise to Egmont working groups including the development of new techniques to launder money.
  B. Publish suspicious activity reports so that entities subject to money laundering obligations are aware of the identities of criminals.
  C. Act as an intermediary between the entities subject to money laundering obligations and law enforcement agencies.
  D. Legislate regulations that enhance the effectiveness of AML and sanctions compliance.
  C. Act as an intermediary between the entities subject to money laundering obligations and law enforcement agencies.

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  The primary responsibility of a financial intelligence unit is to act as an intermediary between the entities subject to money laundering obligations and law enforcement agencies. Financial intelligence units are responsible for receiving and analyzing suspicious activity reports (SARs) from entities subject to money laundering obligations, and then forwarding relevant information to the appropriate law enforcement agencies. Additionally, the financial intelligence units are responsible for providing expertise to Egmont working groups to help develop new techniques to detect and prevent money laundering.

• Question 367:

  A local law enforcement officer, who is conducting a criminal investigation, requests information about a customer. Which two actions should the bank take? (Choose two.)

  A. Close the account immediately
  B. File a suspicious transaction report
  C. Monitor the account for suspicious activity
  D. Review the money laundering risk posed by the account
  B. File a suspicious transaction report
  C. Monitor the account for suspicious activity

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  According to the Anti-Money Laundering Specialist (the 6th edition) study guide, when a financial institution receives a law enforcement inquiry, it should cooperate as much as possible and respond to all formal requests for information, unless there is a valid objection that can and should be made1. The institution should also file a suspicious transaction report (STR) if the inquiry or the customer's activity triggers any red flags or indicators of money laundering or other financial crimes2. Additionally, the institution should monitor the account for suspicious activity and review the money laundering risk posed by the account, as these are part of the ongoing due diligence and risk assessment processes3. Closing the account immediately is not a recommended action, as it may alert the customer or interfere with the investigation4. References: 1: ACAMS, CAMS Certification Package - 6th Edition, Chapter 4, page 121 2: ACAMS, CAMS Certification Package - 6th Edition, Chapter 4, page 122 3: ACAMS, CAMS Certification Package - 6th Edition, Chapter 4, page 123 4: ACAMS, CAMS Certification Package - 6th Edition, Chapter 4, page 124

• Question 368:

  A customer brings $15,000 worth of chips into a casino and plays various games. The customer redeems all the remaining chips and requests a wire transfer of the proceeds to an unrelated third party. What are two red flags that indicate money laundering? (Choose two.)

  A. Customer redeeming all remaining chips
  B. Playing various games before cashing out
  C. Bringing $15,000 worth of chips into the casino
  D. Requesting a wire transfer to an unrelated third party
  C. Bringing $15,000 worth of chips into the casino
  D. Requesting a wire transfer to an unrelated third party

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  Bringing $15,000 worth of chips into the casino is a red flag because it could indicate that the customer is trying to avoid the currency transaction reporting (CTR) requirement for cash transactions over $10,0001. Requesting a wire transfer to an unrelated third party is another red flag because it could indicate that the customer is trying to conceal the source or destination of the funds, or transfer them to a high-risk jurisdiction2. References: ACAMS CAMS Certification Video Training Course, Module Casinos and Gaming, Section 3.1: Regulatory Requirements, Slide 8 2: ACAMS CAMS Certification Video Training Course, Module 3: Casinos and Gaming, Section 3.2: Money Laundering Methods and Red Flags, Slide 11

• Question 369:

  What are some useful tools or methods in conducting an internal AML investigation? Choose 3 answers

  A. Reviewing documents, particularly of relevant accounts
  B. Interviewing knowledgeable employees of the institution
  C. Subpoenaing the owners of the relevant accounts
  D. Exploring leads through internet searches
  A. Reviewing documents, particularly of relevant accounts
  B. Interviewing knowledgeable employees of the institution
  D. Exploring leads through internet searches

• Question 370:

  Section 319(a) of the USA PATRIOT Act:

  A. Allows the appropriate federal banking agency to require a financial organization to produce, within 120 hours, records or information related to the organization's AML compliance or related to a customer of the organization or any account opened, maintained, administered, or managed in the U.S. by the financial organization.
  B. Provides the U.S. Department of Treasury with the authority to apply graduated, proportionate measures against a foreign jurisdiction, foreign financial organization, type of international transaction, or type of account.
  C. Permits the U.S. Government to seize funds from a correspondent bank account in the U.S. that has been opened and maintained for a foreign bank in the same amount as has been deposited with the foreign bank.
  D. Requires due diligence, and in certain situations enhanced due diligence (EDD), for foreign correspondent accounts, which includes virtually all account relationships that organizations can have with a foreign financial organization and private banking for non-citizens of the U.S.
  A. Allows the appropriate federal banking agency to require a financial organization to produce, within 120 hours, records or information related to the organization's AML compliance or related to a customer of the organization or any account opened, maintained, administered, or managed in the U.S. by the financial organization.

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  Section 319(a) of the USA PATRIOT Act enhances regulatory oversight of foreign financial institutions with U.S. correspondent accounts . Option A (Correct): This section requires foreign banks to provide relevant AML records within 120 hours upon request from a U.S. regulatory agency. Option B (Incorrect): This describes Section 311, which deals with special measures against foreign jurisdictions or financial institutions. Option C (Incorrect): This is covered under Section 319(b), which permits asset seizures from U.S. correspondent accounts. Option D (Incorrect): This relates to Section 312, which mandates due diligence on foreign correspondent accounts and private banking. Best Practices for Compliance with Section 319(a): Ensure the ability to produce AML-related records within 120 hours. Establish clear communication channels between correspondent banks. Monitor foreign financial institution relationships for compliance risks.