ACAMS ACAMS Certifications CAMS Questions & Answers

• Question 491:

  A new compliance officer is reviewing the bank's anti-money laundering program and notices that the risk assessment was completed six months ago. Since that time, the bank acquired another financial institution, re-named the internal records group, and streamlined cash handling procedures.

  Which factor causes the compliance officer to update the bank's risk assessment?

  A. The bank acquired another institution

  B. The internal records group has been re-named

  C. The cash handling procedures were streamlined

  D. The risk assessment was completed six months ago

  Correct Answer: A

• Question 492:

  In the summer, an institution identifies anti-money laundering concerns regarding a customer's account activity. The customer, an ice cream, has deposited a lot of checks drawn on banks in foreign countries, sent large number of high dollar international wires to different countries, made cash deposits of a few hundred dollars every few days and written multiple checks for a few hundred dollars to the same dozen payees every two weeks.

  Which two transaction types warrant investigation? (Choose two.)

  A. Regular cash deposits

  B. The wires to foreign countries

  C. Repeated checks to the same payees

  D. Checks drawn on banks in foreign countries

  Correct Answer: BD

• Question 493:

  Which three methods are commonly used by an accountant to launder money? (Choose three.)

  A. Representing a client court

  B. Understanding income to take a tax loss

  C. Overstating income to hide excess cash

  D. Acting as a conduit for transferring cash between accounts

  E. Acting as a designee for someone who wishes to hide their identity

  Correct Answer: CDE

• Question 494:

  A bank located in Arizona is considering a loan application for a new client. The collateral for the loan is a property in Florida.

  The loan will be in the name of a limited company (LLC) whose ownership is not disclosed to the bank. The LLC was established by a New York-based attorney.

  The loan will be repaid by the LLC in monthly wire transfers of $9,000 which is more than the required monthly payment.

  Which aspect indicates potential for money laundering?

  A. The LLC's ownership is not disclosed to the bank

  B. The collateral, a property in Florida, is not located in Arizona

  C. The repayment in the amount of $9,000 indicates potential structuring

  D. The attorney associated with the account is outside the bank's lending area

  Correct Answer: A

• Question 495:

  Which method do terrorist financiers use to move funds without leaving an audit trail?

  A. Extortion

  B. Cash couriers

  C. Casa de cambio

  D. Virtual currency

  Correct Answer: B

  Reference: https://www.fatf-gafi.org/media/fatf/documents/reports/FATF%20Terrorist%20Financing%20Typologies%20Report.pdf (24)

• Question 496:

  Why do governments and multi-national bodies impose economic sanctions?

  A. To impede kleptocracy

  B. To enforce foreign policy objectives

  C. To combat an imminent terrorist threat

  D. To prevent fraudulent international trade transactions

  Correct Answer: B

  Reference: https://en.wikipedia.org/wiki/Economic_sanctions

• Question 497:

  In reviewing recent activity, a compliance officer for a money transmitter 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: C

• Question 498:

  A customer living in a high-risk jurisdiction makes frequent, large cash deposits at a bank. The same customer sends small wire transfers to unrelated parties in other high-risk jurisdictions. What are two red flags that may indicate money laundering? (Choose two.)

  A. The bank allows cash deposits

  B. The client resides in a high-risk jurisdiction

  C. Wire transfers are to high-risk jurisdiction

  D. Large cash deposits are from a high-risk jurisdiction

  Correct Answer: CD

  Reference: https://aml-cft.net/library/banks-amlcft-red-flags/

• Question 499:

  A retail bank has just acquired a credit card business. The bank's anti-money laundering policy requires that new employees are trained within 30 days of their hire date and refresher training is delivered to all employees on an annual basis.

  Is the bank's existing anti-money laundering training adequate to be delivered to employee of the newly acquired credit card business?

  A. Yes, the existing training covers the bank's policies, procedures, and processes.

  B. No, anti-money laundering training needs to be delivered face-to-face for credit card businesses.

  C. No, anti-money laundering training needs to be tailored and focused on the risks specific to the business.

  D. Yes, the existing training covers the anti-money laundering regulations that the bank is required to follow.

  Correct Answer: C

• Question 500:

  An institution has made the decision to exit a client relationship due to anti-money laundering concerns. Prior to starting the close out process, the institution receives a written request from a law enforcement agency to keep the account open. The client is the subject of an ongoing investigation and law enforcement wants the institution to continue to monitor the account and report any suspicious activity.

  What is primary consideration the institution should keep in mind when deciding whether to agree to this request?

  A. The anticipated cost of complying with the law enforcement request

  B. The number of suspicious transaction reports previously filed on the client

  C. The fact that the institution has a solid record in complying with law enforcement requests

  D. Whether the institution can continue to meet its regulatory obligations with the accounts open

  Correct Answer: D