ACAMS CAMS Online Practice Questions and Exam Preparation

ACAMS CAMS Online Questions & Answers

• Question 711:

  In order for a terrorist organization to move funds from Cyprus to England through trade-based money laundering, which technique would be used?

  A. An England-based exporter under-invoices a shipment to Cyprus.
  B. An England-based exporter over-invoices a shipment to Cyprus.
  C. A Cyprus-based exporter short-ships a shipment to London.
  D. A Cyprus-based exporter over-invoices a shipment to London.
  B. An England-based exporter over-invoices a shipment to Cyprus.

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  Trade-based money laundering (TBML) involves manipulating trade transactions to move illicit funds rather than goods. One common technique is over-invoicing, where an exporter intentionally inflates the invoice value of goods. In this scenario, an England-based exporter would over-invoice a shipment to Cyprus. By doing so, the exporter creates a surplus amount that can be transferred back to the terrorist organization in England, effectively disguising the movement of illicit funds.

• Question 712:

  Which action does the Financial Action Task Force (FATF) recommend be taken against jurisdictions that have strategic deficiencies?

  A. Conduct due diligence
  B. Apply counter-measures
  C. Add the jurisdiction to the United Nations' list of sanctioned jurisdictions
  D. Create an action plan to address the deficiencies without the support of the FATF
  B. Apply counter-measures

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  http://www.fatf-gafi.org/publications/high-risk-and-ot her-monitored-jurisdictions/documents/publicstatement-october-2018.html "Countries can be subject to comprehensive or targeted sanctions. Comprehensive sanctions prohibit virtually all transactions with a specific country. Targeted sanctions prohibit transac-tions with specified industries, entities or individuals listed on OFAC's Specially Designated Nationals and Blocked Parties List. Failure to comply may result in criminal and civil penalties. FATF also maintains a list of jurisdictions identified as high-risk and noncooperative, whose AML/CFT regimes have strategic deficiencies and are not at international standards. As a result, FATF calls on its members to implement COUNTERMEASURES against the jurisdiction, such as financial institutions applying enhanced due diligence to business relationships and transactions with natural and legal persons from the identified jurisdiction in an attempt to persuade the jurisdiction to improve its AML/CFT regime."

• Question 713:

  Which red flag indicates high potential for money laundering in a real estate purchase?

  A. The purchaser is a nominee
  B. The purchaser had a previous bankruptcy
  C. The purchaser owns a cash intensive business
  D. The purchaser is not a resident where the property is located
  A. The purchaser is a nominee

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  The purchaser being a nominee is a red flag that indicates high potential for money laundering in a real estate purchase. A nominee is a person or entity that acts on behalf of another person or entity, usually to conceal the identity or beneficial ownership of the real owner. Money launderers may use nominees to purchase real estate with illicit funds, and then transfer the property to the real owner or sell it for a profit. This way, they can obscure the source and ownership of the funds, and integrate them into the legitimate economy12. References: ACAMS, CAMS Examination Study Guide, 6th Edition, Chapter 3, pp. 77-78 FATF, Money Laundering and Terrorist Financing through the Real Estate Sector, June 20073, pp. 19

• Question 714:

  Which two statements about the Wolfsberg Group are true?

  A. It is composed of representatives of financial intelligence units from around the world
  B. It focuses primarily on Know Your Customer, AML and CTF guidance
  C. It based its original guidance around combating the laundering of proceeds of narcotics trafficking
  D. It has no power to impose its principles/guidance
  B. It focuses primarily on Know Your Customer, AML and CTF guidance
  D. It has no power to impose its principles/guidance

• Question 715:

  A compliance officer identifies a potentially significant risk in a popular financial product. Further investigation reveals there is no mitigating control. Which course of action should the compliance officer take?

  A. Launch a long-term project to remediate the control deficiency
  B. Note the risk and address it during the next round of policy and procedure review
  C. Immediately cease providing the product and only offer it after effective permanent mitigation is implemented
  D. Implement a temporary mitigation that enables effective management of the risk until a permanent plan can be developed
  D. Implement a temporary mitigation that enables effective management of the risk until a permanent plan can be developed

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  as there's NO mitigating control, the temporary control system must be developed and implemented until the permanent mitigating control is developed and implemented.

• Question 716:

  What are the roles of a government Financial Intelligence Unit (FIU) ? (Select Three.)

  A. Investigate and, where appropriate, prosecute all suspicious transaction and suspicious activity reports received from reporting institutions or obliged institutions.
  B. Analyze all suspicious transaction and suspicious activity reports received from reporting institutions or obliged institutions.
  C. Disseminate analysis of suspicious transaction and suspicious activity reports to foreign judicial systems to enhance their anti-money laundering and terrorist financing investigations and prosecutions.
  D. Disseminate the analysis of suspicious transaction and suspicious activity reports to local law enforcement agencies and foreign FIUs to combat money laundering.
  E. Receive reports of suspicious transactions and suspicious activities from reporting institutions or obliged institutions.
  B. Analyze all suspicious transaction and suspicious activity reports received from reporting institutions or obliged institutions.
  D. Disseminate the analysis of suspicious transaction and suspicious activity reports to local law enforcement agencies and foreign FIUs to combat money laundering.
  E. Receive reports of suspicious transactions and suspicious activities from reporting institutions or obliged institutions.

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  Financial Intelligence Units (FIUs) serve as national centers for collecting, analyzing, and disseminating AML/CFT information . Option B (Correct): FIUs analyze SARs and STRs to detect money laundering and terrorist financing risks. Option D (Correct): FIUs disseminate financial intelligence to local and international law enforcement agencies and other FIUs. Option E (Correct): FIUs receive SARs/STRs from financial institutions, which form the basis for their analysis. Why Other Options Are Incorrect: Option A (Incorrect): FIUs do not prosecute cases; they refer findings to law enforcement agencies. Option C (Incorrect): FIUs share intelligence, but prosecution is handled by judicial authorities, not FIUs. Best Practices for FIUs: Enhance data-sharing agreements with domestic and international agencies. Use AI and analytics tools to detect suspicious financial patterns. Ensure secure handling of sensitive AML/CFT data.

• Question 717:

  With which person(s) should an anti-money laundering officer coordinate when implementing a new hire screening program?

  A. Internal Auditor
  B. Local Financial Intelligence Unit
  C. Human Resources
  D. Institution's Regulator
  C. Human Resources

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  An anti-money laundering officer should coordinate with the human resources department when implementing a new hire screening program. A new hire screening program is a process of conducting background checks and verifying the identity, qualifications, and suitability of prospective employees, especially those who will be involved in the bank's anti-money laundering (AML) compliance program. The human resources department is responsible for managing the recruitment, hiring, and training of employees, and ensuring that they comply with the bank's policies and procedures. Therefore, the human resources department is the most appropriate partner for the anti-money laundering officer in developing and executing a new hire screening program that meets the bank's AML standards and regulatory requirements. The other options are not relevant or necessary for the implementation of a new hire screening program. The internal auditor is responsible for evaluating the effectiveness and adequacy of the bank's internal controls, including the AML compliance program, but not for screening new hires. The local financial intelligence unit is a government agency that collects, analyzes, and disseminates financial information related to money laundering and terrorist financing, but not for screening new hires. The institution's regulator is the authority that supervises and examines the bank's compliance with the applicable laws and regulations, including the AML requirements, but not for screening new hires. References: ACAMS Study Guide for the CAMS Certification Examination (6th Edition), Chapter 4: Developing an AML/CFT Program 1 FFIEC BSA/AML Manual, Assessing the BSA/AML Compliance Program, BSA/AML Training 2 AUSTRAC, Employee due diligence 3

• Question 718:

  How should law enforcement obtain documentation from an institution when suspicious activity was identified? (Choose two.)

  A. Request copies of the relevant documents from the accountable institution.
  B. Pay an employee of the accountable institution to make copies of the documents.
  C. Request a Financial Intelligence Unit (FIU) share copies of suspicious transaction reports.
  D. Request the documents from the FIU.
  E. Acquire a search warrant to obtain the documents.
  A. Request copies of the relevant documents from the accountable institution.
  E. Acquire a search warrant to obtain the documents.

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  Law enforcement should obtain documentation from an institution when suspicious activity was identified by either requesting copies of the relevant documents from the accountable institution or acquiring a search warrant to obtain the documents. These are the legal and proper ways to access the supporting documentation that the institution is required to maintain for five years after filing a suspicious activity report (SAR). The institution must provide the documentation upon request by FinCEN or an appropriate law enforcement or supervisory agency, and should verify the identity and authority of the requestor. Law enforcement can also obtain a search warrant from a court if they have probable cause to believe that the documents contain evidence of a crime.

• Question 719:

  Which response represents a high-level principle for FATF-Style Regional Bodies (FSRB)?

  A. Membership, mission, financial procedures, and budget
  B. Dependent with different experiences to strengthen the overall effort
  C. Access to documents and assistance with meetings
  D. Reciprocity for effective participation and recognition of work
  D. Reciprocity for effective participation and recognition of work

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  Reciprocity is one of the high-level principles that govern the relationship between the FATF and the FSRBs. It means that both the FATF and the FSRBs should respect and acknowledge each other's work, such as standard setting, mutual evaluations, and follow-up processes. Reciprocity also implies that the FATF and the FSRBs should have similar mechanisms or practices for ensuring effective participation of their members in their activities. References: The main reference for this question is the document titled "High-Level Principles and Objectives for FATF and FATF-style regional bodies" published by the FATF in February 2019. You can access it by clicking here. You can also find more information about the FSRBs and their roles on the FATF website and the Sygna blog. Reference:https://www.fatf-gafi.org/media/fatf/documents/High-Level%20Principles%20and%20Objectives% 20for%20FATF%20and%20FSRBs.pdf (4)

• Question 720:

  A Trust and Company Service Provider (TCSP) providing services should have policies and procedures in place to identify critical information of the:

  A. general manager.
  B. signatory.
  C. controller.
  D. registered address.
  B. signatory.

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  A TCSP providing services should have policies and procedures in place to identify critical information of the signatory, as this is one of the key elements of the customer due diligence (CDD) process. The signatory is the person who has the authority to sign documents or contracts on behalf of the customer, such as a company, a trust, or a partnership. The signatory may also be the beneficial owner, the controller, or a nominee of the customer. The TCSP should verify the identity and the capacity of the signatory, as well as the source and origin of the funds or assets involved in the transaction or business relationship. The TCSP should also monitor the activities of the signatory and report any suspicious or unusual transactions or changes in the signatory's behaviour or profile. 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), Subsection 2.2.1: CDD Process, pp. 51-52 RISK-BASED APPROACH GUIDANCE FOR TRUST AND COMPANY SERVICE PROVIDERS (TCSPs), Section III ?Guidance for TCSPs, Subsection III.1: Risk Assessment, pp. 23-24 SRA | Trust and Company Service Provider guidance | Solicitors Regulation Authority, Section: Definition, Paragraph 2 A Trust and Company Service Provider (TCSP) providing services should have policies and procedures in place to identify critical information of the:, Answer B