ACAMS ACAMS Certifications CAMS Questions & Answers

• Question 391:

  Bank A is a non-United States (U.S.) bank that has $5 million in a correspondent account at a bank in New York City. The Worldwide Terrorist Syndicate (WTS) has $1 million in its account at a non-US branch of Bank A. The U.S. government has initiated forfeiture action against the WTS.

  Which potential action can the U.S. take under the USA PATRIOT ACT pursuant to the issuance seizure warrant?

  A. Seize Bank A's $5 million correspondent account in the U.S.

  B. Seize WTS' $1 million account at the non-U.S. branch of Bank A.

  C. Seize $1 million from Bank A's correspondent account in the U.S.

  D. Seize $5 million from the non-U.S. branch of Bank A where the WTS' account is located.

  Correct Answer: C

• Question 392:

  A local law enforcement officer notifies the bank compliance officer that he is working on an insurance fraud scheme that appears to be running transactions using the account of a bank employee. The law enforcement officer refers to a kiting suspicious transaction report filed by the compliance officer and requests further information.

  What action should the compliance officer take?

  A. Inform the board of directors

  B. Call the employee and demand an explanation

  C. Allow access to the bank's documents immediately

  D. Provide the information to the law enforcement in response to a formal written request

  Correct Answer: D

• Question 393:

  In reviewing recent transaction activity, a compliance officer for a money transmitter notices that several customers are each remitting the same amount of money but much more frequently. How should the institution respond?

  A. File a suspicious transaction report

  B. Instruct the tellers not to process remittances for these customers in the future

  C. Conduct further investigation to determine whether this is truly suspicious activity

  D. Immediately contact the customers and ask them why they are remitting money more often

  Correct Answer: A

• Question 394:

  A large United States (U.S.) bank is performing due diligence on a non-U.S. bank. The non-U.S. bank has applied for a correspondent account at the U.S. bank. Which two steps should the U.S. bank take under the USA PATRIOT Act? (Choose two.)

  A. Verify the identity of the customers of the foreign bank

  B. Determine whether enhanced due diligence is necessary

  C. Assess the money laundering risk presented by the correspondent account

  D. Verify the identity of politically exposed persons in management positions at the non-U.S. bank

  Correct Answer: BC

• Question 395:

  A compliance officer receives a report from the institution's monitoring system. One account was identified in multiple alerts for the amount of cash deposited and international wires sent.

  Which two sources of information held within the institution will enable the compliance officer to determine whether the activity should be reported? (Choose two.)

  A. The signature card for the account

  B. The customer due diligence information on file

  C. The monitoring system parameters for identifying unusual activity

  D. Transaction records for the period during which the unusual activity occurred

  Correct Answer: BD

• Question 396:

  A compliance officer is tasked with implementing an enterprise-wide anti-money laundering program for a bank, which operates in multiple countries. Not all the bank products and services are available in all countries.

  Which three factors should be considered as part of the approach? (Choose three.)

  A. The types of customers serviced by the bank

  B. The customer onboarding platform that will be used

  C. The extent of anti-money laundering regulations in the various countries

  D. The anti-money laundering risk posed by the products and services offered by the bank

  E. The amount of resources needed to implement the anti-money laundering program in the countries

  Correct Answer: ACD

• Question 397:

  What do the Financial Action Task Force (FATF) mutual evaluations of each member assess?

  A. The levels of implementation of the FATF Recommendations

  B. The member's ability to send a representative to the plenary sessions

  C. If the member has a large enough economy to maintain its membership

  D. If the member has made any suggestions for updates to the FATF Recommendations

  Correct Answer: A

  Reference: https://www.fatf-gafi.org/publications/mutualevaluations/documents/more-about-mutual-evaluations.html

• Question 398:

  A company service provider in Country A sets up a corporate structure for a client from Country B, which is known for corruption. The corporate structure includes a holding company in Country A with a bank account in one of the international banks located there.

  During on-boarding, the client's wealth was estimated at $7 million. Shortly thereafter, the client's father became president of Country B. During a routine client review two years later, it was identified that client's wealth had grown to $510 million.

  What are two red flags that indicate money laundering or financial terrorism? (Choose two.)

  A. The client is from a country known for corruption.

  B. The substantial growth in wealth during a short period of time.

  C. The client is a family member of a PEP from a country known for corruption.

  D. The holding company is in Country A with a bank account in one of the international banks.

  Correct Answer: BC

• Question 399:

  A startup virtual currency exchange has registered as a money services business and will commence operations in six months. The company will provide digital wallets to customers to hold their virtual currency after purchase. Customers will have the option to conduct purchases of the virtual currency and transfer the currency to and from the digital wallet. The startup must develop an anti-money laundering compliance program prior to launch.

  Which two anti-money laundering responsibilities should be considered before business launch? (Choose two.)

  A. A customer onboarding process

  B. Transaction limits consistent with risk appetite

  C. Employees to handle complaints in a timely fashion

  D. Mechanisms to monitor and protect customers' digital wallets from cyber-attacks

  Correct Answer: AB

• Question 400:

  Which two steps should a financial institution take when it receives a law enforcement request to keep an account open that may be associated with suspicious or criminal activity? (Choose two.)

  A. File a suspicious transaction report on the account owner(s)

  B. Maintain account records for at least five years after the request expires

  C. Ask for a written request from the law enforcement agency that defines the duration

  D. Stop filing suspicious transaction reports because law enforcement will be monitoring the account

  Correct Answer: BC