ACAMS CAMS Online Practice Questions and Exam Preparation

ACAMS CAMS Online Questions & Answers

• Question 481:

  The most important anti-money laundering issue associated with on-line banking is accurately

  A. Capturing data
  B. Analyzing data
  C. Identifying clients
  D. Generating reports
  C. Identifying clients

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  One of the main challenges of online banking is verifying the identity of customers who open accounts or conduct transactions remotely, without face-to-face interaction. This poses a higher risk of money laundering, as criminals may use false or stolen identities, or hide behind shell companies or nominees, to move illicit funds through online platforms. Therefore, online banking providers must implement robust and risk-based customer due diligence (CDD) measures, such as verifying identity documents, using biometric or digital verification methods, screening customers against sanctions and watchlists, and monitoring customer behavior and transactions for any red flags or anomalies. References: ACAMS Study Guide for the CAMS Certification Examination, 6th Edition, Chapter 2: Compliance Standards for Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT), Section 2.2: Customer Due Diligence (CDD) and Know Your Customer (KYC), p. 32-35. eWallets: AML Risks and How to Comply1

• Question 482:

  The training department is conducting awareness training for unusual customer identification scenarios. Which two indicators should be included? (Select Two.)

  A. The customer opens the account in the name of a family member who begins making large deposits.
  B. The customer's name and home address cannot be verified
  C. The customer's internet protocol address does not match the identifying information provided during online registration.
  D. The customer requests payment of proceeds to an unrelated third party.
  E. The customer frequently exchanges small bills for large bills.
  A. The customer opens the account in the name of a family member who begins making large deposits.
  B. The customer's name and home address cannot be verified

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  This information can be found in the Certified Anti-Money Laundering Specialist (CAMS) study guide, 6th edition, under the section on Unusual Customer Identification Scenarios. The guide explains that two indicators that should be included in awareness training for unusual customer identification scenarios are: A. The customer opens the account in the name of a family member who begins making large deposits. This is an indicator of potential structuring, where a customer may be attempting to avoid triggering reporting thresholds by depositing funds in smaller amounts over time. It is important for staff to be aware of this scenario and to monitor accounts for potential suspicious activity. B. The customer's name and home address cannot be verified. This is an indicator of potential identity theft or other fraudulent activity. If a customer's identifying information cannot be verified, it is important for staff to conduct additional due diligence to ensure that the customer is legitimate and that the account is not being used for illicit purposes.

• Question 483:

  To what extent should senior management and the Board of Directors be involved in the filing of any STR?

  A. They should be informed of all significant STRs and the numbers and trends of the filings
  B. They should be given copies of all STRs filed by the institution
  C. They should review and approve the filing of all STRs
  D. They should be the only designated individuals to communicate with law enforcement
  A. They should be informed of all significant STRs and the numbers and trends of the filings

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  According to the ACAMS CAMS Certification Study Guide (6th edition), senior management and the Board of Directors have the ultimate responsibility for the effectiveness of the AML program and the compliance with the relevant laws and regulations. Therefore, they should be informed of all significant STRs and the numbers and trends of the filings, as this would help them to assess the level of risk exposure and the adequacy of the controls and resources. The other options are either too restrictive or too burdensome for senior management and the Board of Directors, and may interfere with the timely and confidential filing of STRs. References: ACAMS CAMS Certification Study Guide (6th edition), page 361; ACAMS CAMS Certification Video Training Course, Module 2, Lesson 12

• Question 484:

  Which information should be provided to the Board of Directors or a designated specialized committee when preparing a Suspicious Activity Report (SAR) report summary ?

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

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  SAR information is highly sensitive , and institutions must follow strict confidentiality rules to protect investigations and avoid "tipping off" customers. Option D (Correct): Statistical summaries (e.g., the number of SARs filed, trends, typologies) help the Board monitor AML risks without disclosing confidential details . Option A (Incorrect): Providing all possible details may violate SAR confidentiality laws . Option B (Incorrect): Sharing full SAR copies with non-compliance staff is not permitted under AML regulations. Option C (Incorrect): Naming specific customers under SAR review risks "tipping off" or leaking confidential information. Best Practices for SAR Reporting to the Board: Provide anonymized statistics on SAR trends. Highlight emerging AML risks and compliance effectiveness. Avoid disclosing specific cases or customer names.

• Question 485:

  Which statement is true about banking regulatory agencies having the authority to obtain information from regulated institutions?

  A. The regulatory agencies may only obtain information from the regulated institution's books and records by virtue of a search warrant
  B. A search warrant may be substituted by a court subpoena compelling the institution to produce the information to the regulatory agency
  C. The agencies authority to conduct examinations negates the need for a warrant or subpoena
  D. If a regulatory agency intends to prosecute a regulated institution, a warrant or subpoena must first be granted before the information can be obtained
  C. The agencies authority to conduct examinations negates the need for a warrant or subpoena

• Question 486:

  Cybersecurity risk can result in identity theft by:

  A. executing false transactions.
  B. compromising individual's personal data.
  C. issuing false passwords.
  D. identifying bugs in personal data processors.
  B. compromising individual's personal data.

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  Identity theft is a form of fraud or cheating of identity in which someone wrongfully obtains and uses another person's personal data in some way that involves fraud or deception, typically for economic gain. By compromising an individual's personal data, such as their Social Security Number, bank account numbers, or other personal information, a cybercriminal can use it to gain access to credit cards or other financial accounts, or to open new accounts in the victim's name.

• Question 487:

  Which key metric would provide the most valuable data to senior management about the effectiveness of its AML controls ?

  A. The number of money laundering alerts generated by the watchlist screening system.
  B. The number of clients exited for commercial reasons.
  C. The number of high-risk customers onboarded each month.
  D. The ratio of true positives to false positives generated by the automated monitoring system.
  D. The ratio of true positives to false positives generated by the automated monitoring system.

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  An effective AML program balances alert accuracy and operational efficiency . Option D (Correct): The true positive vs. false positive ratio reflects the efficiency and accuracy of an AML transaction monitoring system. Option A (Incorrect): The number of alerts does not indicate system effectiveness--many could be false positives. Option B (Incorrect): Clients exiting for commercial reasons are unrelated to AML efficiency. Option C (Incorrect): Tracking high-risk customer onboarding is important but does not measure AML effectiveness. Best Practices for Measuring AML Effectiveness: Monitor system efficiency through alert validation metrics. Reduce false positives while maintaining regulatory compliance. Enhance machine learning and AI models for transaction monitoring.

• Question 488:

  Which method is used to launder money in casinos?

  A. Purchase chips with cash and play at a table
  B. Purchase chips with cash and redeem for cash
  C. Purchase chips with cash and redeem for a check
  D. Purchase chips with cash and sell to another person for cash
  D. Purchase chips with cash and sell to another person for cash

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  According to the web search results, one of the methods that FATF-style regional bodies (FSRBs) use to understand the inherent money laundering and terrorist financing risks in their regions is to conduct regional- level research and analysis of the money laundering and terrorist financing methods and trends using standards and templates used for FATF typologies reports12. Typologies are the various techniques used to launder money or finance terrorism, and typologies reports are the documents that describe these techniques, identify the vulnerabilities and risks, and provide case studies and best practices to prevent and detect them3. The FATF and its FSRBs produce typologies reports on a regular basis, covering different topics and sectors relevant to their regions and the global community. By conducting regional-level research and analysis, FSRBs can enhance their understanding of the specific money laundering and terrorist financing threats and challenges faced by their member countries, and provide them with useful guidance and recommendations to mitigate these risks. The other options are not correct because they are either not the methods used by FSRBs to understand the inherent money laundering and terrorist financing risks in their regions, or they are not consistent with the FATF standards and expectations. Requiring member countries to develop statistical metrics over money laundering and terrorist financing crimes may be a useful way to measure the effectiveness of their anti- money laundering and counter-terrorist financing (AML/CFT) systems, but it is not a method used by FSRBs to understand the risks in their regions. Rather, it is a requirement imposed by the FATF on all countries to collect and maintain comprehensive statistics on matters relevant to the effectiveness and efficiency of their AML/CFT systems4. Requiring participating financial institutions of their members to file suspicious transaction reports (STRs) to the regional body may be a violation of the FATF standards, which state that financial institutions should report any suspicious transactions to the financial intelligence unit (FIU) of their country, not to any regional or international body. Moreover, STRs are confidential and protected by legal provisions, and should not be disclosed to any third party without the consent of the FIU. Conducting global research on money laundering and terrorist financing trends and reporting their findings in their own typologies report may be a duplication of the FATF's work, as the FATF is the global standard-setter and policy-maker for AML/CFT, and produces typologies reports that cover the global trends and issues. FSRBs should focus on the regional-level research and analysis, and coordinate and cooperate with the FATF and other FSRBs to share information and experiences.

• Question 489:

  A client has retained a lawyer to create a financial holding company. The lawyer resides in Europe. The client provides all requested documentation to the lawyer. However, the lawyer becomes suspicious that the customer is engaged in criminal activity and intends to use the financial holding company for money laundering purposes. Which of the following should an anti-money laundering specialist recommend according to the European Union Money Laundering Directives?

  A. There is no need to file a suspicious transaction report, as this activity is covered by attor-ney-client privilege.
  B. Freeze the client's assets so that all records can be turned over to the competent authori-ties.
  C. Report the activity as suspicious to the competent authority because the lawyer is covered by these directives.
  D. Consult with the competent authority to receive advice on how to handle the transaction.
  C. Report the activity as suspicious to the competent authority because the lawyer is covered by these directives.

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  The correct answer is C because the European Union Money Laundering Directives require lawyers and other independent legal professionals to report suspicious transactions to the competent authority when they are involved in certain activities on behalf of their clients, such as creating or managing companies, trusts, or other legal arrangements. The directives also provide that the obligation to report overrides any professional secrecy or confidentiality rules, except when the lawyer is ascertaining the legal position of the client or representing the client in legal proceedings or in connection with such proceedings.

• Question 490:

  Which of the following corporate structures present a higher money laundering risk due to reduced transparency ? (Select Three.)

  A. A company with nominee shareholders and directors in a local jurisdiction.
  B. A private company that has no activity in a tax haven jurisdiction.
  C. A company with bearer shares incorporated in a tax haven jurisdiction.
  D. A limited liability company incorporated in a foreign jurisdiction.
  E. A private investment company incorporated in a tax haven jurisdiction with strict secrecy laws.
  A. A company with nominee shareholders and directors in a local jurisdiction.
  C. A company with bearer shares incorporated in a tax haven jurisdiction.
  E. A private investment company incorporated in a tax haven jurisdiction with strict secrecy laws.

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  Certain corporate structures obscure beneficial ownership , making them attractive for money laundering . Option A (Correct): Nominee shareholders and directors conceal the true owners of a company , increasing AML risk. Option C (Correct): Bearer shares allow ownership to be transferred anonymously , making it difficult to trace transactions. Option E (Correct): Private investment companies in tax havens with strict secrecy laws enable illicit fund movements. Why Other Options Are Incorrect: Option B (Incorrect): A private company that does not operate in a tax haven presents lower ML risk. Option D (Incorrect): A foreign LLC is not necessarily high-risk unless linked to a secrecy jurisdiction. Best Practices for Identifying High-Risk Corporate Structures: Require full disclosure of beneficial ownership. Apply enhanced due diligence (EDD) on tax-haven entities. Monitor for unusual cross-border transactions.