Updated Jun-2022 Test Engine to Practice CAMS Test Questions
CAMS Real Exam Questions Test Engine Dumps Training With 405 Questions
NEW QUESTION 77
Which statement describes the relationship between the internal audit function and compliance?
- A. An internal audit program of the adequacy of the bank's compliance function should be established, but should not include review of transactions
- B. The compliance function and internal audit function should be combined
- C. The internal audit methodology should include an assessment of compliance risk
- D. In order to maintain independence, the auditors should not discuss internal audit findings with compliance management
Answer: C
NEW QUESTION 78
What is an essential element of Know Your Customer (KYC) standards according to the Basel Committee's Customer Due Diligence for Banks paper?
- A. The same KYC requirements must be applied in all cases
- B. A customer acceptance policy
- C. All completed KYC documents must be reviewed by a senior manager not involved in the account opening process
- D. Annual staff training
Answer: B
NEW QUESTION 79
Which three entities does the Third European Union Money Laundering Directive apply to?
- A. Financial Institutions
- B. Casinos
- C. Real Estate Agents
- D. Defense Attorneys
Answer: A,B,C
NEW QUESTION 80
An analyst reviewing trade finance transactions notices an increase in price of 25% over 12 months for commodities with the same specification and quantity. Which action should the analyst take?
- A. Produce a SAR/STR that describes apparent trade-based money laundering and submit to the Financial Investigation Unit (FIU).
- B. Produce an updated due diligence record for the client so that monitoring can be enhanced.
- C. Produce an investigation report that considers client activity and factors that may have legitimately affected transaction cost.
- D. Produce an investigation report that finds evidence to substantiate the analyst's suspicion and submit a SAR/STR.
Answer: C
NEW QUESTION 81
A remittance company received a money order from a senior political figure m the Philippines to transfer a large sum of money to a charity group in the Philippines. A review of the charity group revealed a director having dose ties with a known terrorist group primarily financed through kidnapping and extortion.
What is a key risk indicator associated with terrorism financing?
- A. There is no risk relating of terrorism financing when the charity group is operating legitimately in that country
- B. A large sum sent by money order to a charity
- C. There is a link between the charity group and a known terrorist group
- D. The sender is a Political Exposed Person (PEP) and should be subject to enhanced due diligence
Answer: C
NEW QUESTION 82
In which situation can money laundering adversely affect a country's currencies and interest rates due to launderers investing dirty funds?
- A. They invest in legitimate companies as a way of making their funds appear to be legitimate
- B. They invest in a way to hide funds rather than get a high rate of return
- C. They invest in high risk ventures with high rates of return
- D. They invest in shell companies in secrecy havens that intentionally manipulate rates
Answer: C
NEW QUESTION 83
According to the Financial Action Task Force 40 Recommendations, simplified customer due diligence or reduced measures could be acceptable for which of the following types of products or transactions?
1.Life insurance policies where the annual premium is no more than USD/EUR 1,000 or a single premium of no more than USD/EUR 2,500.
2.Insurance policies for pension schemes if there is no surrender clause and the policy cannot be used as collateral.
3.A ptfiisiui i Ll idL pr uviJcfb lelir emei it bei lefils Lu employees.
4.Trusts where the settlor, trustee and beneficiaries are identified and the shares are in bearer
form.
- A. 1, 3, and 4 only
- B. 1, 2, and 3 only
- C. 1, 2, and 4 only
- D. 2, 3, and 4 only
Answer: C
NEW QUESTION 84
When should new business products to evaluated for AML concerns?
- A. At the time of the next enterprise risk assessment
- B. On an annual basis
- C. Before they are launched into the market
- D. After they have been implemented so there is empirical data to review
Answer: C
NEW QUESTION 85
You plan to deploy two AI applications named AI1 and AI2. The data for the applications will be stored in a relational database.
You need to ensure that the users of AI1 and AI2 can see only data in each user's respective geographic region. The solution must be enforced at the database level by using row-level security.
Which database solution should you use to store the application data?
- A. Microsoft Azure Cosmos DB
- B. Microsoft SQL Server on a Microsoft Azure virtual machine
- C. Microsoft Azure Database for MySQL
- D. Microsoft Azure Data Lake Store
Answer: B
Explanation:
Row-level security is supported by SQL Server, Azure SQL Database, and Azure SQL Data Warehouse.
References:
https://docs.microsoft.com/en-us/sql/relational-databases/security/row-level-security?view=sql-server-2017
NEW QUESTION 86
Which method is used to launder money via wire remittances sent through a bureau de change or money services business?
- A. A customer in country A receives four small wire transfers from four different individuals located in country B on December 21. The aggregate of the wire transfers falls below the legal reporting threshold.
- B. A customer in country A makes a weekly small wire transfer to the bank account of an individual in country B.
- C. A customer in country A makes frequent wire transfers to a single customer in country B that are slightly under the legal reporting threshold.
- D. A large number of wire transfers are sent from a large number of senders in country A to a large number of recipients in country B during the period of December 1 to December 15.
Answer: C
NEW QUESTION 87
An AML compliance officer receives notice of government update including the names of the latest terrorists sanctioned by the United Nations Security Council. Which would be the most appropriate step to take?
- A. Notify the Board of Directors
- B. Inform the customers that their funds will be frozen
- C. Update the monitoring software containing sanctioned persons
- D. Update training information to include the latest names
Answer: C
NEW QUESTION 88
The bank for International Settlements provides the secretariat for which organization?
- A. FATF
- B. The Wolfsberg Group
- C. The Egmont Group
- D. The Basel Committee
Answer: D
Explanation:
Reference:http://www.bis.org/bcbs/about.htm(4th para)
NEW QUESTION 89
What was cited by the Wolfsburg Group in its Statement on the Suppression of the Financing of Terrorism as being vulnerable to terrorist financing?
- A. Correspondent banking
- B. Alternative remittance
- C. Private banking
- D. Trade finance
Answer: B
NEW QUESTION 90
Which three characteristics make non-profit organizations vulnerable to misuse for terrorist financing?
- A. Enjoying the public trust
- B. Having access to a considerable sources of funds
- C. Being listed as government nonprofit organization
- D. Having a global presence for national and international operations and financial transactions
Answer: A,B,D
NEW QUESTION 91
How can a financial institution verify the nature and purpose of a business and its legitimacy?
- A. By undertaking a company search or other commercial inquires to see that the institution has not been, or is not in the process of being dissolved of terminated
- B. By reviewing the company's website
- C. By using an independent information verification process, such as by accessing public and private databases
- D. By reviewing a copy of the corporation's latest audited reports and accounts
Answer: A
NEW QUESTION 92
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 type of commodity being shipped appears inconsistent with the exporter or importer's regular business activities
- C. Significant discrepancies appear between the description of the commodity on the bill of lading and the invoice
- D. The packaging is inconsistent with the commodity or shipping method
Answer: A,B
NEW QUESTION 93
Which indicator should be suspicious to a compliance officer at a brokerage firm?
- A. Large number of bid/ask prior to market opening
- B. A broker splits the bid-ask spread with the investor when matching buy and sell orders
- C. Trading between accounts controlled by the same person
- D. The client imposed limits to their losses from the outset of the relationship
Answer: C
NEW QUESTION 94
In which two ways do Financial Action Task Force-style regional bodies influence anti-money laundering and terrorist financing standards within their respective regions? (Choose two.)
- A. They administer mutual evaluations of participating members.
- B. They enforce the laws of the member countries in their geographic region.
- C. They issue typologies specific to their geographical region.
- D. They require participating countries to adopt laws in line with their recommendations.
Answer: A,D
NEW QUESTION 95
A charity has unaudited accounts. Which of the following represents the highest risk factor for terrorist financing?
- A. Disbursement of funds to entities unrelated to the purpose of the charity.
- B. Frequent deposits from third parties into the charity's bank account.
- C. Frequent changes to the senior management of the charity.
- D. An international board composed of politically exposed persons.
Answer: B
NEW QUESTION 96
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