ACAMS CAMS Online Practice Questions and Exam Preparation

ACAMS CAMS Online Questions & Answers

• Question 411:

  Which of the following are the most suspicious transaction indicators related to casino activities?

  1.

  A client requests a winnings check (cheque) in a third party's name.

  2.

  Acquaintances bet against each other in even-money games and it appears they are intentionally losing to one of the parties.

  3.

  A new client who is a large volume player asks the casino operator about the ability to transfer the funds to other locations in the same country.

  4.

  A client requests the transfer of winnings to the bank account of a third party in a country without an effective anti-money laundering regime.

  A. 1, 2, and 3 only
  B. 1, 2, and 4 only
  C. 1, 3, and 4 only
  D. 2, 3, and 4 only
  B. 1, 2, and 4 only

  ---

  The most suspicious transaction indicators related to casino activities are: A client requests a winnings check (cheque) in a third party's name. This could indicate an attempt to conceal the source or ownership of the funds, or to evade reporting requirements. Acquaintances bet against each other in even-money games and it appears they are intentionally losing to one of the parties. This could indicate a scheme to launder money through the casino by transferring funds from one party to another without attracting attention. A client requests the transfer of winnings to the bank account of a third party in a country without an effective anti-money laundering regime. This could indicate an attempt to move funds to a high-risk jurisdiction or to a person or entity that is involved in illicit activities. The option that is not suspicious is: A new client who is a large volume player asks the casino operator about the ability to transfer the funds to other locations in the same country. This could be a legitimate inquiry from a high-net-worth individual who travels frequently and wants to access their funds conveniently.

• Question 412:

  Which regulation regarding data privacy has to be considered while carrying out a financial crime investigation?

  A. General Data Protection Regulation
  B. European Enforcement Order
  C. Securities Financing Transactions Regulation
  D. Rome II Regulation
  A. General Data Protection Regulation

  ---

  The General Data Protection Regulation (GDPR) is a regulation issued by the European Union (EU) that sets out requirements for the processing and protection of personal data. It applies to any company that processes personal data of individuals in the EU, and requires organizations to take appropriate measures to protect the personal data of individuals, such as implementing appropriate security measures, limiting the amount of data collected and stored, and providing clear explanations of how the data will be used. In the context of financial crime investigations, the GDPR requires organizations to ensure the security and confidentiality of personal data that they collect and process, and to take measures to ensure that the data is used only for the purpose of the investigation and not for any other purpose.

• Question 413:

  Which of the below statements are supported by the Financial Action Task Force (FATF) 40 Recommendations adopted in 2012? (Select Two.)

  A. Regulators should direct Financial Institutions to establish appropriate frameworks to avoid banking higher-risk customers.
  B. Nations should work towards implementing targeted financial sanctions in alignment with the UN Security Council.
  C. Nations should establish frameworks that take a risk-based approach to prevent and mitigate money laundering and terrorist financing.
  D. Governments must work toward developing identical administrative and operational frameworks for investigating and prosecuting crime.
  E. Nations should take measures to ensure there is transparency to the beneficial ownership of legal persons.
  B. Nations should work towards implementing targeted financial sanctions in alignment with the UN Security Council.
  C. Nations should establish frameworks that take a risk-based approach to prevent and mitigate money laundering and terrorist financing.
  E. Nations should take measures to ensure there is transparency to the beneficial ownership of legal persons.

  ---

  The FATF 40 Recommendations outline global AML/CFT standards , including risk-based compliance and beneficial ownership transparency . Option B (Correct): FATF requires nations to implement financial sanctions in coordination with the UN Security Council. Option C (Correct): FATF emphasizes a risk-based approach (RBA) to prevent ML/TF. Option E (Correct): FATF mandates transparency in beneficial ownership to prevent shell company misuse. Why Other Options Are Incorrect: Option A (Incorrect): FATF does not require institutions to avoid high-risk customers but to apply appropriate risk-based controls. Option D (Incorrect): Governments do not need identical crime investigation frameworks but should ensure effective cooperation. Best Practices for FATF Compliance: Apply risk-based due diligence on high-risk customers. Enhance beneficial ownership transparency measures. Implement targeted financial sanctions in coordination with global authorities.

• Question 414:

  Which is a key characteristic of the Financial Action Task Force (FATF) Regional Style Bodies for combatting money laundering/terrorist financing?

  A. Instructing each member country to place FATF recommendations into law
  B. Implementing regional mutual evaluation procedures
  C. Emphasizing regional co-operation between member countries
  D. Enabling FATF standards to be specific to each region
  C. Emphasizing regional co-operation between member countries

  ---

  The FATF Regional Style Bodies (FSRBs) are autonomous regional organizations that help the FATF implement its global AML/CFT policy, which revolves around its 40 Recommendations, in over 200 affiliated countries1. One of the key characteristics of the FSRBs is that they emphasize regional co-operation between member countries, as stated in the High-Level Principles and Objectives approved by the FATF Plenary in October 20122. This means that the FSRBs facilitate information exchange, technical assistance, training, and mutual support among their members to enhance their AML/CFT capacities and compliance. The FSRBs also promote regional perspectives and specificities in the FATF policy-making process and foster dialogue and collaboration with other regional and international bodies2. References: 1: What are the 9 FATF-Style Regional Bodies (FSRBs)? - Sygna 2: FATF-Style Regional Bodies (FSRBs) - Asia/Pacific Group on Money Laundering

• Question 415:

  A compliance analyst is reviewing recent activity between a publicly traded company and a company in a high risk jurisdiction. Which detail suggests that escalation is warranted?

  A. The activity is a reputational risk to the financial institution.
  B. It is the first time the originator wires the beneficiary.
  C. Beneficiary is active in a related industry.
  D. Payments to the beneficiary are for large dollar amounts.
  D. Payments to the beneficiary are for large dollar amounts.

  ---

  According to the ACAMS CAMS Certification Study Guide (6th edition), one of the red flags for money laundering is the transfer of large sums of money to or from high-risk jurisdictions, especially if the transactions are inconsistent with the customer's profile or business activity. Large payments to a beneficiary in a high-risk jurisdiction may indicate that the originator is involved in illicit activities such as tax evasion, fraud, corruption, or terrorism financing. Therefore, such payments should be escalated for further investigation and reporting1 References: 1: ACAMS CAMS Certification Study Guide (6th edition), page 64.

• Question 416:

  The Wolfsberg Group has issued a number of documents since its inception aiming to:

  A. provide a standardized process amongst its bank members for combatting money laundering and terrorist financing in private banking.
  B. prevent money laundering or terrorist financing by establishing consistent regulatory standards across the EU.
  C. provide advice to regulators around the world on the due diligence requirements for politically exposed persons.
  D. provide financial institutions with an industry perspective on effective financial crime risk management.
  D. provide financial institutions with an industry perspective on effective financial crime risk management.

  ---

  The Wolfsberg Group is an association of thirteen global banks that aims to develop guidance and standards for the management of financial crime risks. The Group has issued a number of documents since its inception to provide financial institutions with an industry perspective on effective financial crime risk management.

• Question 417:

  Which element is generally required of all anti-money laundering programs?

  A. A computer-based suspicious activity monitoring system
  B. A qualified compliance officer to manage the program
  C. Annual in-person AML training for all employees
  D. An enhanced due diligence program for all new customers
  B. A qualified compliance officer to manage the program

  ---

  a qualified compliance officer is a mandatory element of all anti-money laundering programs, regardless of the type or size of the financial institution. The compliance officer is responsible for developing, implementing, and overseeing the anti-money laundering program, ensuring its compliance with the relevant laws and regulations, and reporting any suspicious activity to the appropriate authorities. The compliance officer should have sufficient authority, resources, and expertise to perform these duties effectively.

• Question 418:

  Which function provided by lawyers can be useful to a potential money launderer as documented by FATF in its typology report 2000-2001? Choose 3 answers

  A. Creating complex legal arrangements
  B. Buying and selling property
  C. Performing financial transactions on behalf of a client
  D. Providing legal advice
  A. Creating complex legal arrangements
  B. Buying and selling property
  C. Performing financial transactions on behalf of a client

  ---

  According to the FATF typology report 2000-20011, lawyers can provide a range of functions that can be useful to a potential money launderer, such as: Creating complex legal arrangements, such as trusts, foundations, or corporations, that can obscure the identity and ownership of the beneficial owners or the origin and destination of the funds. Buying and selling property, such as real estate, art, or jewelry, that can be used to transfer or store illicit proceeds or to provide a legitimate cover for the source of funds. Performing financial transactions on behalf of a client, such as opening bank accounts, transferring funds, issuing checks, or exchanging currencies, that can facilitate the movement or concealment of illicit funds. Providing legal advice, on the other hand, is not a function that can be directly exploited by a money launderer, unless the advice is related to the above functions or to the avoidance or evasion of anti-money laundering laws and regulations. References: 1: FATF Terrorist Financing Typologies Report - Financial Action Task Force2

• Question 419:

  Which risk factors should a financial institution (FI) examine for a new corporate customer intending to open a bank account ? (Select Three.)

  A. The type of business the corporate customer is engaged in.
  B. The employment profiles and information of all employees of the new customer.
  C. All the financial institutions where the new customer currently banks or banked previously .
  D. The identity of senior managing officials and all individuals authorized to operate the account.
  E. The country or location where the customer is from or conducts business.
  A. The type of business the corporate customer is engaged in.
  D. The identity of senior managing officials and all individuals authorized to operate the account.
  E. The country or location where the customer is from or conducts business.

  ---

  When onboarding new corporate customers financial institutions must conduct thorough due diligence , (KYC/CDD) to assess the risk profile of the business. Option A (Correct): Knowing the customer's business activity is critical to identifying if it is a high-risk industry (e.g., cash-intensive businesses, virtual assets, shell companies). Option D (Correct): Identifying senior management and account operators ensures that the rightful owners and controllers are known. Option E (Correct): Jurisdictional risk is a key factor. If the company operates in a high-risk country , enhanced due diligence (EDD) may be required. Option B (Incorrect): Employment profiles of all employees are not relevant unless the employees are politically exposed persons (PEPs) or linked to financial crime. Option C (Incorrect): Knowing where a business previously banked is not standard practice unless the entity is flagged for suspicious activity . AML Risks in Corporate Banking: Shell Companies and Complex Ownership Structures: Can be used to hide beneficial owners and launder illicit funds. High-Risk Countries and Sanctions Exposure: Customers linked to high-risk jurisdictions (FATF Grey/Blacklist) may require EDD measures . Unusual Business Nature: Some businesses (e.g., cash-intensive industries, cryptocurrency firms ) have higher financial crime risks . Best Practices: Conduct KYC/CDD at account opening and periodic reviews for risk management. Use beneficial ownership registries to verify the ultimate beneficial owners (UBOs) . Cross-check against sanction lists (OFAC, UN, EU, etc.).

• Question 420:

  A foreign bank's compliance officer receives a request for information from a US bank, alerting the foreign bank to the possibility that it may have transferred funds on behalf of an Office of Foreign Assets Control (OFAC>-sanctioned person, who holds an account with the foreign bank. Which statements are true with respect to said funds and the information in relation to the transaction under scrutiny? (Select Two.)

  A. If the funds are seized, then the foreign bank would be within its rights to dispute such seizure.
  B. US authorities have no power (in terms of the USA PATRIOT Act) to sanction the foreign bank for transferring funds on behalf of an OFAC-sanctioned entity.
  C. The USA PATRIOT Act authorizes the Secretary of the Treasury or the Attorney General to subpoena records from the foreign bank that maintains a correspondent account with a US bank,
  D. If a US citizen were part of the foreign bank's Board deliberations where a decision was made to onboard the OFAC-sanctioned entity as a client, then they can be confronted with criminal charges.
  E. US authorities are only permitted to seize the funds transferred by the foreign bank under OFAC sanctions if there is an equivalent sanctions regime of the UN which has been contravened.
  A. If the funds are seized, then the foreign bank would be within its rights to dispute such seizure.
  C. The USA PATRIOT Act authorizes the Secretary of the Treasury or the Attorney General to subpoena records from the foreign bank that maintains a correspondent account with a US bank,

  ---

  According to the USA PATRIOT Act, US authorities do have the power to subpoena records from foreign banks that maintain correspondent accounts with US banks. This is known as a "section 314(a) request," which allows law enforcement to obtain information related to suspected terrorist financing or money laundering. However, US authorities are not limited to seizing only funds transferred under OFAC sanctions if there is an equivalent UN sanctions regime that has been contravened. The US government can impose its own sanctions that are independent of the UN, and can seize funds or take other actions to enforce those sanctions. Therefore, the correct answers to the question are A and C: A. If the funds are seized, then the foreign bank would be within its rights to dispute such seizure. C. The USA PATRIOT Act authorizes the Secretary of the Treasury or the Attorney General to subpoena records from the foreign bank that maintains a correspondent account with a US bank.