ACAMS ACAMS Certifications CAMS Questions & Answers

• Question 481:

  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

  Correct Answer: CD

• Question 482:

  An automotive parts company in South America sends multiple $500,000 wire transfers per week to ABC Holdings Ltd. in Asia referencing payment for silk flower shipments. Research reveals Sunrise Holdings, Ltd is registered in the British Virgin Islands with no available ownership information.

  What are two red flags that indicate how trade-based money laundering could be occurring in this instance? (Choose two.)

  A. The transaction involves the use of front (or shell) companies

  B. The packaging is inconsistent with the commodity or shipping method

  C. Significant discrepancies appear between the description of the commodity on the bill of lading and the invoice

  D. The type of commodity being shipped appears inconsistent with the exporter or importer's regular business activities

  Correct Answer: AD

• Question 483:

  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

  Correct Answer: CD

  Reference: http://pubdocs.worldbank.org/en/834721427730119379/AML-Module-2.pdf

• Question 484:

  What do Financial Action Task Force (FATF)-style regional bodies do for their members to help combat money laundering and terrorist financing?

  A. They provide technical assistance to members in implementing FATF recommendations

  B. They assist member countries in penalizing entities that violate FATF standards and recommendations

  C. They work with members on areas of concern outside of anti-money laundering and terrorist financing

  D. They supervise member country financial institutions relating to anti-money laundering and terrorist financing

  Correct Answer: A

  Reference: https://www.fatf-gafi.org/media/fatf/documents/brochuresannualreports/FATF30-(1989-2019).pdf

• Question 485:

  What are the regulatory risks to a bank employee who willfully violates anti-money laundering laws?

  A. Investigation and reputational damage

  B. Fines and suspension from the industry

  C. Criminal investigation and imprisonment

  D. Enforcement actions including fines against the financial institution

  Correct Answer: B

• Question 486:

  What are two requirements with respect to supporting documentation that is used to identify potentially suspicious activity, according to Financial Action Task Force? (Choose two.)

  A. It must be retained for at least five years

  B. It must be retained for at least seven years

  C. It must be kept in a manner so that it can be provided promptly

  D. It must only be released to the government through a subpoena process

  Correct Answer: AC

  Reference: https://www.fatf-gafi.org/media/fatf/documents/recommendations/pdfs/FATF%20Recommendations%202012.pdf

• Question 487:

  The Wolfsberg Anti-Money Laundering Principles for Private Banking require new clients to be approved by whom?

  A. The board of directors

  B. Only the private banker

  C. The private banker's supervisor

  D. At least one person other than the private banker

  Correct Answer: D

  Reference: https://www.wolfsberg-principles.com/sites/default/files/wb/pdfs/wolfsberg-standards/10.%20Wolfsberg-Private-Banking-Prinicples-May-2012.pdf (04)

• Question 488:

  Which two factors should increase the risk of a correspondent bank customer and require additional due diligence according to the Wolfsberg Anti-Money Laundering Principles for Correspondent Banking? (Choose two.)

  A. The customer is located in a Financial Action Task Force member country and provides services primarily to a local individual customer.

  B. The customer is located in a Financial Action Task Force member country and the bank's head of information security is a politically exposed person.

  C. The customer is located in a Financial Action Task Force member country and provides services to other correspondent banks in neighboring countries.

  D. The customer is located in a non-Financial Action Task Force member country and services mostly commercial customers who engage in international trade.

  Correct Answer: CD

• Question 489:

  What is a key risk associated with Correspondent Accounts according to the Basel Customer Due Diligence paper?

  A. It is not used on a daily basis

  B. The service fees are insufficient to cover the cost of managing the account

  C. The respondent bank's customer acceptance and know your customer policies are ineffective

  D. The volume and value of transactions passing through the account may not be in line with the original correspondent agreement

  Correct Answer: C

• Question 490:

  A law enforcement agency is reviewing a suspicious transaction report (STR) filed by a financial institution for suspicious activity on a client's account. Subsequently, the agency requests further information. Which supporting documentation might the law enforcement agency request from the institution to facilitate its investigation?

  A. Previously filed STRs on the same customer

  B. Account opening documents and account statements

  C. Copies of promotional materials sent to the customer

  D. A copy of the institution's STR policy and procedures

  Correct Answer: B