ACAMS CAMS Online Practice Questions and Exam Preparation

ACAMS CAMS Online Questions & Answers

• Question 441:

  In which two ways does a government Financial Intelligence Unit interact with public and private sectors? (Choose two.)

  A. It governs the methods of investigation used by competent authorities
  B. It mediates disputes between financial institutions and investigative authorities
  C. It receives and analyzes disclosures filed by financial and non-bank institutions
  D. It disseminates information and the results of its analysis to competent authorities
  C. It receives and analyzes disclosures filed by financial and non-bank institutions
  D. It disseminates information and the results of its analysis to competent authorities

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  A government Financial Intelligence Unit (FIU) is a national body or agency that collects, analyzes, and disseminates information on suspicious or unusual financial activity related to money laundering, terrorist financing, or other financial crimes12. One of the main functions of an FIU is to receive and analyze disclosures or reports filed by financial and non-bank institutions, such as banks, casinos, money service businesses, lawyers, accountants, etc., that are obliged to report transactions or activities that may indicate money laundering or terrorist financing34. Another key function of an FIU is to disseminate the information and the results of its analysis to competent authorities, such as law enforcement, prosecutors, regulators, or other FIUs, for further investigation, prosecution, or preventive action56. These two ways of interaction enable the FIU to act as a bridge between the public and private sectors in the fight against financial crimes. References: 1: What are Financial Intelligence Units (FIUs)?, Dow Jones, 3; 2: Financial Intelligence Unit, Wikipedia, 2; 3: The Role of Financial Intelligence Units in Fighting Money Laundering and Terrorist Financing, IMF, 8; 4: What is an FIU?, Egmont Group of Financial Intelligence Units, [9]; 5: FIU Functions, FATF, [10]; 6: FIU.NET, Europol, [11]. http://pubdocs.worldbank.org/en/834721427730119379/AML-Module-2.pdf

• Question 442:

  Which two aspects of the security broker dealer industry increase its exposure to money laundering? Choose 2 answers

  A. The routine use of wire transfers from, to or through multiple jurisdictions
  B. Theyeasy conversion of holdings to cash with significant loss of principal
  C. Disposing of cash through securities purchases
  D. Fast paced transactions conducted electronically
  A. The routine use of wire transfers from, to or through multiple jurisdictions
  D. Fast paced transactions conducted electronically

• Question 443:

  The new compliance officer has reviewed the bank's anti-money laundering training program. The program consists of online training for all new employees within 30 days of hire date and annual refresher training to all employees. In addition,

  there is specialized training for areas that deal with higher risk products and customers.

  Over the last year, there have been no regulatory changes and no new products or services have been introduced. The compliance officer wants to propose to the board of directors that the annual refresher training is still current and can be

  delivered unchanged to all employees.

  Which two critical pieces of information could be missed by taking this approach? (Choose two.)

  A. Any new trends, developments, or risks
  B. Results of the previous year's risk assessment
  C. Changes to internal policies, procedures, and processes
  D. Links to enforcement actions identifying violations in other financial institutions
  A. Any new trends, developments, or risks
  D. Links to enforcement actions identifying violations in other financial institutions

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  By delivering the same annual refresher training to all employees, the compliance officer could miss the opportunity to update the staff on any new trends, developments, or risks that have emerged in the anti-money laundering field. For example, new typologies, indicators, technologies, or best practices could be relevant for the staff to be aware of and apply in their daily work. Moreover, the compliance officer could also miss the chance to share any links to enforcement actions identifying violations in other financial institutions that could serve as lessons learned or case studies for the staff to avoid similar mistakes or gaps in their compliance program. References: ACAMS CAMS Certification Video Training Course, Module 5: Risk Management, Lesson 5.4: Training1 ACAMS CAMS Certification Study Guide, 6th Edition, Chapter 5: Risk Management, Section 5.4: Training2

• Question 444:

  An existing customer has changed its business scope and jurisdictions it deals with. Which are the steps the bank needs to take to manage sanctions compliance risk for this customer?

  A. Collect further customer reference data and determine what must be screened and at which frequency.
  B. Conduct further sanctions screening on the customer's directors and ultimate beneficial owners.
  C. Deploy an independent risk-based test to ensure the screening on this customer is effective.
  D. Perform politically exposed person and negative media screenings.
  A. Collect further customer reference data and determine what must be screened and at which frequency.
  C. Deploy an independent risk-based test to ensure the screening on this customer is effective.

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  A. Collect further customer reference data and determine what must be screened and at which frequency. and C. Deploy an independent risk-based test to ensure the screening on this customer is effective. Comprehensive Detailed = When an existing customer changes its business scope and jurisdictions, banks need to manage sanctions compliance risk effectively. Here are the steps they should take: 1. Collect Further Customer Reference Data: Obtain updated information about the customer's new business activities, locations, and counterparties. Understand the nature of their transactions and assess the associated risks. Determine what specific data elements need to be screened (e.g., names, addresses, beneficial owners) and establish the appropriate screening frequency. 2. Deploy an Independent Risk-Based Test: Conduct a comprehensive risk assessment tailored to the customer's changes. This assessment should consider factors such as the customer's industry, geographic exposure, and transaction volume. The risk assessment helps identify high-risk areas that require enhanced scrutiny. 3. Screen Directors and Ultimate Beneficial Owners: Perform sanctions screening not only on the customer but also on their directors and ultimate beneficial owners. This ensures that any potential risks associated with these individuals are identified and mitigated. 4. Perform Politically Exposed Person (PEP) and Negative Media Screenings: Continue to screen the customer and related parties against PEP lists and negative media sources. This helps detect any adverse information related to politically exposed individuals or entities. By following these steps, banks can proactively manage sanctions compliance risk and safeguard their institution's reputation while adhering to regulatory requirements.

• Question 445:

  What are the three basic functions of a national financial intelligence unit?

  A. Compile, assess, monitor
  B. Train, share, collect
  C. Investigate, report, record
  D. Receive, analysis, disseminate
  D. Receive, analysis, disseminate

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  A National Financial Intelligence Unit (FIU) has three primary functions: receiving, analyzing, and disseminating information related to suspicious financial activities. The FIU's main focus is to identify and investigate suspicious activities, such as money laundering, terrorist financing, and other financial crimes. The FIU also works with other organizations and agencies to develop effective and efficient financial crime prevention strategies. The FIU is tasked with developing an effective system for receiving, analyzing, and disseminating information related to suspicious financial activities. The information collected is then used to identify, investigate, and prosecute financial crimes.

• Question 446:

  Which should be provided to the board of directors or designated specialized committee when reporting SARs /STRs?

  A. All possible details of SARs/STRs filed during the reported period.
  B. Statistical data regarding SARs/STRs filed during the reported period.
  C. Names of all customers subject to SARs/STRs filed during the reported period.
  D. Copies of all SARs/STRs filed during the reported period.
  B. Statistical data regarding SARs/STRs filed during the reported period.

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  The board of directors or designated specialized committee should be provided with statistical data regarding SARs/STRs filed during the reported period, such as the number, type, value, and geographic distribution of the reports, as well as any trends or patterns identified. This information helps the board or committee to oversee the effectiveness of the firm's AML program, assess the level of compliance risk, and allocate appropriate resources and training. Providing all possible details, names of customers, or copies of SARs /STRs may compromise the confidentiality of the reports, violate data protection laws, or expose the firm to legal liability. References: ACAMS Study Guide for the Certified Anti-Money Laundering Specialist (6th Edition), Chapter 5, Section 5.3.2, page 223. The Role of the Money Laundering Reporting Officer - ICAEW, page 14. https://www.fia.tc/wp-content/uploads/2018/04/FIA-SARGUIDE-0515-1.0.pdf

• Question 447:

  Which suspicious activity may be the strongest indicator of money laundering through a casino ?

  A. A privately held company originates funds transfers through the casino into the betting accounts of multiple patrons.
  B. A patron routinely places multiple bets on the same sporting events.
  C. A patron purchases a large amount of chips at a blackjack table using cash.
  D. A patron requests the casino to transfer their winnings to another gambling operator.
  A. A privately held company originates funds transfers through the casino into the betting accounts of multiple patrons.

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  Casinos are high-risk for money laundering due to their cash-intensive nature and ease of moving funds anonymously . Option A (Correct): A private company sending funds into multiple patron accounts is suspicious because it may indicate money laundering structuring or use of mules . Option B (Incorrect): Betting on multiple events is normal behavior unless there is evidence of match-fixing . Option C (Incorrect): Large cash buy-ins are common in casinos ; however, they become suspicious when coupled with other red flags (e.g., no actual gambling). Option D (Incorrect): Transferring winnings may be a regular transaction unless linked to structured transactions .

• Question 448:

  Which is a FATF characteristic used to assess a country's effectiveness of its AML regime?

  A. Funds supporting and proceeding from crime or terrorism are prevented from entering the financial sector.
  B. Legal persons are prevented from misuse for money laundering or terrorist financing.
  C. Supervisors appropriately supervise, monitor, and regulate financial institutions (Fls).
  D. FIs adequately apply preventive measures.
  D. FIs adequately apply preventive measures.

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  The FATF is an inter-governmental body that sets standards and promotes effective implementation of legal, regulatory, and operational measures for combating money laundering, terrorist financing, and other related threats to the integrity of the international financial system. The FATF conducts mutual evaluations of its members and other jurisdictions to assess their compliance with the FATF Recommendations and the effectiveness of their AML/CFT regimes The FATF defines effectiveness as "the extent to which a country's AML/CFT regime is achieving the defined outcomes of an effective regime that allows them to mitigate their risks and threats of ML/TF"2. The FATF assesses effectiveness based on 11 immediate outcomes, which are grouped into three thematic goals: financial system integrity, legal system and operational issues, and international cooperation. One of the immediate outcomes under the financial system integrity goal is that "FIs adequately apply preventive measures commensurate with their risks, and report suspicious transactions" (IO.4)2. This outcome measures how well FIs implement the FATF Recommendations on customer due diligence, record-keeping, internal controls, risk assessment, and suspicious transaction reporting. These preventive measures are essential for FIs to identify and mitigate the risks of being misused for money laundering or terrorist financing, and to provide useful information to the authorities for investigation and prosecution. Therefore, the correct answer is D. FIs adequately apply preventive measures, as this is one of the FATF characteristics used to assess a country's effectiveness of its AML regime.

• Question 449:

  The ultimate goal of economic sanctions is to:

  A. protect the reputation of the country.
  B. prevent terrorists from profiting from trade.
  C. protect national security.
  D. reduce the profits of sanctioned countries.
  C. protect national security.

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  Economic sanctions are penalties imposed by one or more countries against another country, group, or individual for violating international norms or threatening national interests1. The ultimate goal of economic sanctions is to protect national security by changing the behavior or policies of the target, or by weakening its capabilities or resources2. Sanctions can be used to advance various foreign policy objectives, such as counterterrorism, nonproliferation, democracy promotion, human rights protection, conflict resolution, and cybersecurity1. Sanctions can take different forms, such as travel bans, asset freezes, trade embargoes, arms restrictions, and aid reductions1. Sanctions can be applied unilaterally by one country, or multilaterally by a coalition of countries or an international organization, such as the United Nations or the European Union1. References: 1: What Are Economic Sanctions? | Council on Foreign Relatio 2: How Economic Sanctions Work - Investopedia Reference: https://www.investopedia.com/articles/economics/10/economic-sanctions.asp

• Question 450:

  From an international standards perspective , both the EU and FATF consider data sharing a crucial component of effective anti-money laundering measures because data sharing:

  A. Promotes financial transparency and protects the integrity of financial systems .
  B. Allows Financial Intelligence Units (FIUs) to enact sanctions against perpetrators of financial crime.
  C. Helps financial institutions to be more effective in fighting crime with data analysis.
  D. Needs to be approved by the FIU before sharing between financial institutions.
  A. Promotes financial transparency and protects the integrity of financial systems .

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  Data sharing between financial institutions, FIUs, and law enforcement is essential to AML compliance . Option A (Correct): Transparent financial systems deter money laundering and terrorist financing . Option B (Incorrect): FIUs do not impose sanctions ; they collect and analyze data . Option C (Incorrect): While data analysis is valuable, the key goal is financial transparency . Option D (Incorrect): In many jurisdictions, data sharing is encouraged , with some restrictions .