ACAMS ACAMS Certifications CAMS Questions & Answers

• Question 601:

  Why do trusts established in certain offshore jurisdictions make good vehicles to launder money?

  A. Names of the settlor and beneficiaries are not publicly available

  B. Trustare typically set up to minimize taxes

  C. Offshore jurisdictions are unfamiliar with trusts

  D. Trusts may hold assets of significant size

  Correct Answer: D

• Question 602:

  What are some of the methods for sharing information and cooperating on an international basis? Choose 3 answers

  A. Mutual Assistance Legal Treaties

  B. International Money Laundering Information Network

  C. Regulatory sharing through Supervisory Channels

  D. Issuant subpoenas

  Correct Answer: ABC

• Question 603:

  What are the European Union Directives on Money Laundering?

  A. They arevoluntary codes of best practice for the financial sector

  B. They are written by the Wolfsberg Group

  C. They require members to implement certain laws of prevent money laundering

  D. They require financial institutions to report suspicious activity to theEgmont Group in Brussels

  Correct Answer: C

• Question 604:

  Why do government entities around the world believe that a risk-based approach to AML/CFT compliance is a preferable prescriptive measure?

  A. It is easier for examiners to make subjective criticisms

  B. It is more flexible, effective and proportionate

  C. It allows institutions to focus their attention on only high risk customers

  D. It allows the creation of hard and fast rules that must be followed

  Correct Answer: B

• Question 605:

  When providing reporting of STRs to the board, which of the following should be provided?

  A. A numerical summary of all the STRs

  B. A numerical summary of all the STRs and a summary of key STRs, including PEPs, key employees

  C. A summary of all key STRs, including PEPs and key employees

  D. All the STRs filed with the national FIU

  Correct Answer: C

• Question 606:

  The marketing department presents a business plan targeting individuals holding important public positions. What are some steps the financial institution should implement as part of the plan to target such individuals?

  A. Investigate the sourceof funds

  B. Determine the purpose of the account

  C. Determine if the client appears on the Basel Committee on Banking Supervision's list of public officials

  D. Take all reasonable steps to check the background of the individual based on public information

  Correct Answer: ABD

• Question 607:

  The Board of Directors and the senior management of a financial institution should ensure that which three are established and followed with regard to an effective AML program?

  A. There is a strong compliance program

  B. International guidance is followed and understood

  C. They are kept informed of all major AML issues

  D. Regulatory compliance is made part of all relevant job descriptions

  Correct Answer: ACD

• Question 608:

  What is operational risk?

  A. The potential forloss of public confidence in an organization's integrity

  B. The potential for loss resulting from too much credit or loan exposure to one borrower

  C. The potential for loss due to inadequate processes, people, systems, or external events

  D. The potential for lawsuits, fines, and penalties increasing an organization's expenses

  Correct Answer: C

• Question 609:

  What is a key element required to ensure an anti-money laundering compliance program is effectively embedded into an institution's culture?

  A. An internal audit

  B. Ongoing training

  C. Peer review

  D. A record retention policy

  Correct Answer: B

• Question 610:

  In 2004, Consolidated KYC Risk Management was issued by the Basel Committee on Banking Supervision (BCBS). What is a key message in this document?

  A. KYC Risk Management required a yearly consolidation effort

  B. KYC Risk Management means as established decentralized process for promulgating policies and procedures

  C. Policies and procedures should be designed not merely tocomply strictly with all relevant laws and regulations

  D. Consolidated KYC risk management for a group is critical and trumps jurisdictional rules hat limit information sharing

  Correct Answer: D