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Best Quality ACAMS CAMS Exam Questions
NEW QUESTION 62
What is most valuable when using the internet as an investigative source?
- A. A reference list of websites known to yield credible information
- B. A team of AML investigators
- C. A combination of independent thinking and technical skills
- D. A powerful search engine
Answer: A
NEW QUESTION 63
The USA PATRIOT Act requires United States (U.S.) financial institutions to collect certain information from non-U.S. banks that hold a correspondent account.
Which two pieces of information must a non-U.S. bank provide to its U.S. correspondent to enable them to comply with this requirement? (Choose two.)
- A. The name and address of a U.S. person who is authorized to receive service of legal process for the bank
- B. The name and address of all beneficial owners who own 25% or more of the bank
- C. Prompt notice of any suspicious activity it detects on any customer who uses the correspondent account
- D. The name and address of all shell banks the bank maintains accounts for
Answer: B,C
Explanation:
Explanation/Reference: https://www.sec.gov/about/offices/ocie/amlsourcetool.htm
NEW QUESTION 64
Which three definitions of money laundering are included in the expanded definition of the European Union Fourth Directive? (Choose three.)
- A. The conversion or transfer of property with knowledge that it is derived from criminal activity
- B. Concealing or disguising the nature, source, location, disposition, movement, rights with respect to, or ownership of property, knowing that the property is derived from criminal activity
- C. The transfer of cash in excess of 15,000 euros across country borders regardless of whatever the cash was derived from criminal activity
- D. The acquisition or use of property knowing, when it was received, that it was derived from criminal activity
- E. The creation of shell companies to disguise the identity of its owners
Answer: A,B,D
Explanation:
Explanation/Reference: https://books.google.com.pk/books?id=CMixCwAAQBAJ&pg=PA344&lpg=PA344&dq=european
+4th+directive+Concealing+or+disguising+the+nature,+source,+location,+disposition,+movement,+rights+with
+respect+to,+or+ownership+of+property,+knowing+that+the+property+is+derived+from+criminal
+activity&source=bl&ots=nOUQRszJ6_&sig=ACfU3U1NigFiOY5Zkj30B9FlPI1UhyUMEg&hl=en&sa=X&ved=2a hUKEwibgbi9op3oAhVPfH0KHV0wBXoQ6AEwAHoECBIQAQ#v=onepage&q=european%204th%20directive%
20Concealing%20or%20disguising%20the%20nature%2C%20source%2C%20location%2C%20disposition%
2C%20movement%2C%20rights%20with%20respect%20to%2C%20or%20ownership%20of%20property%2C
%20knowing%20that%20the%20property%20is%20derived%20from%20criminal%20activity&f=false
NEW QUESTION 65
Which two aspects of precious metals pose the highest risk of money laundering? (Choose two.)
- A. The value of precious metals can be inflated easily, making it easy to increase the amount of money laundered
- B. Precious metals have high intrinsic value in a relatively compact form and are easy to convert into currency
- C. Precious metals can be readily used in many high-tech commercial applications, making them all the more valuable
- D. Some precious metals can be formed into other objects, making easier to transport
Answer: B,C
NEW QUESTION 66
Which of the following is the most likely reason for the Financial Action Task Force to remove a jurisdiction from the Non-Cooperative Countries and Territories list?
- A. Joining the Wolfsburg Group.
- B. Receiving a favorable mutual evaluation.
- C. Entering into a mutual legal assistance treaty.
- D. Conducting successful annual self-assessments.
Answer: C
NEW QUESTION 67
The compliance officer for a private bank has been tasked with reviewing the procedure for authorized signatories on customer accounts to ensure it is in line with relevant Wolfsberg Anti-Money Laundering Principles for Private Banking.
Which three statements from the procedure are in line with Wolfsberg? (Choose three.)
- A. If an individual has signing authority over an account but does not act on a professional basis as a manager of funds, the responsible private banker must understand and document the relationship between that authorized signer, the account holder, and, if different, the beneficial owner of the account.
- B. The responsible private banker must establish the identity of a holder of general powers over an account (e.g. a signatory for the account) and, as appropriate, verify that identity.
- C. Where the Authorized Signatory is not a lawyer or accountant, due diligence as to the source of funds and wealth of the Authorized Signatory should be undertaken.
- D. Where due diligence has been satisfactorily completed on all authorized signers, the responsible private banker may reduce the due diligence performed on the account holder and/or beneficial owner.
- E. The responsible private banker must obtain the necessary documentation establishing the authorized signer's authority to act on behalf of the account holder or beneficial owner (e.g. a Power of Attorney).
Answer: A,D,E
Explanation:
Explanation/Reference: https://www.wolfsberg-principles.com/sites/default/files/wb/pdfs/faqs/20.%20Wolfsberg-FAQs-on- Intermediaries-May-2012.pdf
NEW QUESTION 68
Which product is considered to be of highest money laundering risk?
- A. Time deposit accounts
- B. International wire transfers
- C. Credit cards
- D. Savings accounts
Answer: B
NEW QUESTION 69
A compliance officer learns from an Information Technology (IT) source of a potential new financial service being discussed by the new product approval committee.
What is the correct next course of action?
- A. Go to the board of directors and try to shut the new service down immediately because the committee did not communicate with the compliance officer.
- B. Request that the new product approval committee include the compliance officer.
- C. Get as much information as possible from the source so that potential risks can be researched and a report prepared and presented to the head of marketing.
- D. Start initial research into potential risks but wait until notified that the service has been approved by the committee before initiating extensive research.
Answer: D
Explanation:
Explanation
NEW QUESTION 70
When providing reporting of STRs to the board, which of the following should be provided?
- A. A numerical summary of all the STRs and a summary of key STRs, including PEPs, key employees
- B. A numerical summary of all the STRs
- C. A summary of all key STRs, including PEPs and key employees
- D. All the STRs filed with the national FIU
Answer: A
Explanation:
Explanation
In many jurisdictions, it is a requirement to report certain information regarding STRs to senior management and/or the board of directors. This information may be limited to the number of reports filed, the dollar amounts involved and significant trends as observed by compliance personnel. In some cases, if the activity presents a significant or potentially ongoing risk to the institution, the leaders of the institution should be made aware so that high-level decisions can be made regarding potential changes to systems, staffing, products, services or particular relationships maintained by the institution.
Banks are required by the SAR regulations of their federal banking agency to notify the board of directors or an appropriate board committee that SARs have been filed. However, the regulations do not mandate a particular notification format and banks should have flexibility in structuring their format. Therefore, banks may, but are not required to, provide actual copies of SARs to the board of directors or a board committee.
Alternatively, banks may opt to provide summaries, tables of SARs filed for specific violation types, or other forms of notification. Regardless of the notification format used by the bank, management should provide sufficient information on its SAR filings to the board of directors or an appropriate committee in order to fulfill its fiduciary duties, while being mindful of the confidential nature of the SAR.
https://bsaaml.ffiec.gov/manual/AssessingComplianceWithBSARegulatoryRequirements/0
NEW QUESTION 71
A local law enforcement officer, who is conducting a criminal investigation, requests information about a customer.
Which two actions should the bank take? (Choose two.)
- A. Close the account immediately
- B. File a suspicious transaction report
- C. Review the money laundering risk posed by the account
- D. Monitor the account for suspicious activity
Answer: C,D
Explanation:
Explanation/Reference:
NEW QUESTION 72
When should new business products to evaluated for AML concerns?
- A. On an annual basis
- B. Before they are launched into the market
- C. At the time of the next enterprise risk assessment
- D. After they have been implemented so there is empirical data to review
Answer: B
NEW QUESTION 73
A bank maintains a number of United States (U.S.) dollar correspondent accounts for foreign financial institutions. Upon a routine review of a U.S. dollar correspondent account owned by Foreign Bank A, a number of transactions appear to have been originated by Foreign Bank B outside the expected activity for this account. These transactions appear suspicious and a suspicious transaction report was filed by the compliance officer.
Which step should the compliance officer take?
- A. S. dollar correspondent account
- B. Notify other U.S. financial institutions who maintain U.S. dollar correspondent accounts for Foreign Bank A and Foreign Bank B in an effort to shut down the activity
- C. File a report with the appropriate tax authorities in the jurisdictions of Foreign Bank A and Foreign Bank B
- D. Notify senior management of the money laundering risks by allowing Foreign Bank A to maintain its
- E. Notify Foreign Bank A of the discovery and seek documentation supporting Foreign Bank A was collusive and a willing partner with Foreign Bank B in the activity
Answer: E
NEW QUESTION 74
What is a key risk associated with Correspondent Accounts according to the Basel Customer Due Diligence paper?
- A. The respondent bank's customer acceptance and know your customer policies are ineffective
- B. The service fees are insufficient to cover the cost of managing the account
- C. It is not used on a daily basis
- D. The volume and value of transactions passing through the account may not be in line with the original correspondent agreement
Answer: A
NEW QUESTION 75
What can a compliance officer do in the absence of automated software to conduct U.S. Department of the Treasury Office of Foreign Assets Control (OFAC) sanction screens?
- A. Conduct a key-word search on the Internet
- B. Rely on a credit report from OFAC
- C. Use the consolidated Sanctions List Search screen on the OFAC website
- D. Obtain up-to-date copies of the OFAC's Specially Designated Nationals list
Answer: D
Explanation:
Explanation
As part of its enforcement efforts, OFAC publishes a list of individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries. It also lists individuals, groups, and entities, such as terrorists and narcotics traffickers designated under programs that are not country-specific. Collectively, such individuals and companies are called "Specially Designated Nationals" or "SDNs." Their assets are blocked and U.S. persons are generally prohibited from dealing with them. So it's covering all
NEW QUESTION 76
A financial institution receives a regulatory enforcement action because of deficiencies in its anti-money laundering program.
Which action should the board of directors take?
- A. Purchase and install a new suspicious activity monitoring system
- B. Instruct the compliance officer to develop a plan to remediate the institution's anti-money laundering program
- C. Hire an attorney with instructions to protest the enforcement action
- D. Terminate the compliance officer and staff
Answer: B
Explanation:
Explanation/Reference:
NEW QUESTION 77
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.
After you answer a question, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
You have an app named App1 that uses the Face API.
App1 contains several PersonGroup objects.
You discover that a PersonGroup object for an individual named Ben Smith cannot accept additional entries.
The PersonGroup object for Ben Smith contains 10,000 entries.
You need to ensure that additional entries can be added to the PersonGroup object for Ben Smith. The solution must ensure that Ben Smith can be identified by all the entries.
Solution: You migrate all the entries to the LargePersonGroup object for Ben Smith.
Does this meet the goal?
- A. Yes
- B. No
Answer: A
Explanation:
LargePersonGroup and LargeFaceList are collectively referred to as large-scale operations.
LargePersonGroup can contain up to 1 million persons, each with a maximum of 248 faces. LargeFaceList can contain up to 1 million faces. The large-scale operations are similar to the conventional PersonGroup and FaceList but have some differences because of the new architecture.
References:
https://docs.microsoft.com/en-us/azure/cognitive-services/face/face-api-how-to-topics/how-to-use-large-scale
NEW QUESTION 78
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 has no power to impose its principles/guidance
- D. It based its original guidance around combating the laundering of proceeds of narcotics trafficking
Answer: B,C
NEW QUESTION 79
Which of the following poses the greatest money laundering risk for a financial institution offering on-line services to customers?
- A. Institutions offering on-line services have no possibility to properly verify the identity of their customers.
- B. There is greater difficulty in matching the customer with the provided identification documentation. B.
There is no human scrutinizing the customer's transactions, thus increasing the potential for large transactions. - C. Customers can directly access their accounts without being detected.
Answer: C
Explanation:
Explanation
Correct but still under verification
NEW QUESTION 80
Which situation is the highest risk for money laundering and terrorist financing activity?
- A. A customer purchases casino chips using a credit card and engages in minimal game play before redeeming the chips for a casino check
- B. A customer purchases casino chips using credit from an account at an affiliated casino and engages in significant game play before redeeming the chips for a
- C. A customer purchases casino chips, using small denomination bank notes, but does not engage in game play before redeeming the chips for a casino check
- D. A customer purchases casino chips and engages in significant game play before requesting a casino check for the remainder
Answer: C
NEW QUESTION 81
Which statement is true regarding the FATF standards for SARs/STRs information sharing within a financial group?
- A. Financial institutions (FIs) should establish sufficient safeguards concerning the confidentiality of information shared for AML purposes.
- B. FIs cannot share customer information at all since it is confidential.
- C. FIs must retain copies of SARs/STRs and supporting documentation for five years from the date of filing the STRs
- D. FIs must require approval from regulators to share SARs/STRs information and supporting documentation.
Answer: C
NEW QUESTION 82
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The benefit in Obtaining the CAMS Exam Certification
- Increasing their skilled worth through a higher understanding of financial crime detection and hindrance techniques
- ACAMS conducted a survey recently and the findings were pretty interesting on average, professionals who had their ACAMS made $25,000 more than their colleagues who did not have the CAMS certification!
- Protecting their company from money laundering threats and minimize money crime risks
- Meeting mandated AML training needs through preparation and study
- Proving their AML experience to examiners and regulators
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