[Oct 16, 2023] Pass CAMS Review Guide, Reliable CAMS Test Engine
CAMS Test Engine Practice Test Questions, Exam Dumps
NEW QUESTION # 70
Which principles should be included in a FATF-Style Regional Body (FSRB) update? (Choose two.)
- A. Establish AML/CFT standards and typologies
- B. Identify jurisdictions with weak AML/CFT regimes
- C. Issue country-specific Mutual Evaluation reports
- D. Protect the reputation and standing of FATF
- E. Address AML/CFT technical assistance of individual members
Answer: A,C
Explanation:
Reference:
https://www.fatf-gafi.org/media/fatf/documents/High-Level%20Principles%20and%20Objectives%20for%20FA
NEW QUESTION # 71
What are the European Union Directives on Money Laundering?
- A. They require financial institutions to report suspicious activity to the Egmont Group in Brussels
- B. They are voluntary codes of best practice for the financial sector
- C. They are written by the Wolfsberg Group
- D. They require members to implement certain laws of prevent money laundering
Answer: D
NEW QUESTION # 72
A compliance officer is looking to modify procedures covering correspondent banking relationships. Which three would be recommended under the Wolfsburg Principles on Correspondent Banking? Choose 3 answers
- A. Assessing the regulatory status and history of the client
- B. Risk-based rating of central banks and regional development banks
- C. Periodic risk-based reviews of cents
- D. Prohibition on offering products or services to shell banks
Answer: A,C,D
NEW QUESTION # 73
Which assessments are involved in the processes of mutual evaluation and follow-up by the FATF?
- A. Country audit assessments and transaction monitoring assessments
- B. Risk assessments and technical standards assessments
- C. Sanction risk assessments and the country's National Risk Assessment
- D. Technical compliance assessments and effectiveness assessment
Answer: D
NEW QUESTION # 74
In order to protect investigative materials from disclosure when conducting an internal
Investigation of any employee of a financial institution, legal counsel of that financial
should________ ?
- A. Let the bank hire any and all contract investigators to conduct the internal investigation. Thatway Legal is not a party to the action and may remain independent
- B. Request formal companyauthorizationto conduct the investigation. Such authorization shouldbe granted, if possible, by the board of directors or audit committee
- C. Not mark files or documents with privileged and Confidential: Attorney-Client Privilege and/orWork-Product. Those marks will only encourage law enforcement or opposing attorneys to seizethose files
- D. Refuse to provide any records or documents to law enforcement because the bank has clientprivilege with its bank customers
Answer: B
NEW QUESTION # 75
Which three procedures should a compliance officer looking to revise an institution's CTF efforts include in accordance with the Wolfsberg Group's Statement on the Suppression of the Financing of Terrorism?
- A. Maintaining customer information to facilitate timely retrieval of such information
- B. Consulting applicable lists and taking appropriate actions to determine if customers appear on such lists
- C. Reviewing only original identification documents when verifying customers
- D. Reporting matches from lists of known or suspected terrorists to relevant authorities
Answer: A,B,D
Explanation:
Explanation
UNUSUAL CUSTOMER IDENTIFICATION CIRCUMSTANCES
* Customer furnishes unusual or suspicious identification documents or declines to produce originals for verification."
NEW QUESTION # 76
On-line financial technologies are susceptible to money laundering risk because
- A. Viruses significantly damage communications and commerce.
- B. The risk of identity theft is greatly increased.
- C. The identity of the people who conduct transactions may be unknown.
- D. Baring staff are familiar with how this technology can be abused.
Answer: C
Explanation:
Explanation
Correct but to be recheck with B
NEW QUESTION # 77
An anti-money laundering specialist at a large institution is responsible for informing senior management about the status of the anti-money laundering program across the organization. The global institution handles retail banking, commercial banking, global markets, private banking and has an affiliated securities dealer.
The specialist and the team provide corporate strategic direction to these areas on anti-money laundering related subjects. The following information is reported to executive management on a regular basis:
* Total number of suspicious transactions identified and reported
* Suspicious transaction trends
* Training that has occurred for the various units
* Status report on the anti-money laundering regulatory environment
* Summary of exception reports
Which of the following additional elements is the most useful?
- A. Details on inquiries received from law enforcement.
- B. The total credit exposure for non-cooperative countries and territories.
- C. Notification of management changes in the different major divisions.
- D. Results of related audits and examinations.
Answer: A
NEW QUESTION # 78
What should senior management do in order to promote a culture of anti-money laundering compliance?
- A. They should include compliance with AML procedures as condition of employment
- B. They should have close ties with the independent auditors of the AML program
- C. They should base employee compensation on the amount of suspicious activity they detect
- D. They should attend all training sessions with front-line employment
Answer: A
NEW QUESTION # 79
Under the USA PATRIOT Act, in which scenario would the US not have jurisdiction?
- A. Foreign branch of a bank located in the US
- B. Shell banks operating in foreign jurisdictions
- C. US bank subsidiaries located in foreign jurisdictions
- D. Foreign bank with a US correspondent account
Answer: B
NEW QUESTION # 80
A profitable commercial customer who operates an import-export business has multiple accounts with the same institution at branches m different locations. The customer receives funds from a jurisdiction perceived as highly corrupt according to Transparency International ratings. The customer makes frequent transfers among the accounts and prefers to manage the accounts separately. What should the institution do to mitigate the risk associated with these accounts?
- A. Conduct a trade-price manipulation analysis
- B. Diminish the importance of the subjective Transparency International rating
- C. File a suspicious transaction report
- D. Develop a system to monitor all the activity
Answer: C
NEW QUESTION # 81
Which activity is most likely to facilitate money laundering through on-line systems with inadequate controls?
- A. Providing continuous worldwide access
- B. Conducting anonymous transactions
- C. Conducting large value transactions
- D. Conducting a large volume of transactions
Answer: A
NEW QUESTION # 82
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. Implement a temporary mitigation that enables effective management of the risk until a permanent plan can be developed
- B. Immediately cease providing the product and only offer it after effective permanent mitigation is implemented
- C. Note the risk and address it during the next round of policy and procedure review
- D. Launch a long-term project to remediate the control deficiency
Answer: A
Explanation:
Explanation/Reference:
NEW QUESTION # 83
In some instances, a financial institution may receive a warrant from law enforcement authorities to search its premises. A search warrant is a grant of permission from a court for a law enforcement agency to search certain designated premises and seize specific categories of items or information. Generally, what is the required threshold for the requesting agency to establish in order to obtain a search warrant of a financial institution?
- A. Reasonable belief
- B. Clear and convincing proof
- C. A preponderance of the evidence
- D. Probable cause
Answer: D
Explanation:
Explanation
Explanation/Reference:
A search warrant is a grant of permission from a court for a law enforcement agency to search certain designated premises and to seize specific categories of items or documents. Generally requesting agency is required to establish that probable cause exists to believe that evidence of a crime will be located. Warrant is authorized based on information contained in an affidavit submitted by a law enforcement officer.
NEW QUESTION # 84
Which two statements are true regarding the European Union Money Laundering Directives? (Choose two.)
- A. They apply to member states of the European Union
- B. They have extraterritorial impact and apply to states that have diplomatic relations with member states
- C. They set forth non-binding best practices for financial institutions within the member states
- D. They require member states to enact laws and/or regulations to comply with the directives
Answer: A,D
Explanation:
Reference: https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32015L0849&from=FR
NEW QUESTION # 85
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. 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.
- C. 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).
- 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 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.
Answer: A,C,D
Explanation:
Reference:
https://www.wolfsberg-principles.com/sites/default/files/wb/pdfs/faqs/20.%20Wolfsberg-FAQs-on-Intermediarie
NEW QUESTION # 86
How can dealers in high-value items be at risk for money laundering?
- A. Carrying large amounts of gems of high value is physically easy
- B. Drug dealers prefer cash to precious metals and gems
- C. The value of precious metals such as gold and silver is constantly fluctuating.
- D. Paperwork is not required to ship precious metals and gems
Answer: A
NEW QUESTION # 87
Which statement is true about banking regulatory agencies having the authority to obtain information from regulated institutions?
- A. The agencies authority to conduct examinations negates the need for a warrant or subpoena
- B. The regulatory agencies may only obtain information from the regulated institution's books and records by virtue of a search warrant
- C. If a regulatory agency intends to prosecute a regulated institution, a warrant or subpoena must first be granted before the information can be obtained
- D. A search warrant may be substituted by a court subpoena compelling the institution to produce the information to the regulatory agency
Answer: A
NEW QUESTION # 88
An anti-money laundering specialist at a large institution is responsible for information senior management about the status of the anti-money laundering program across the organization.
Which report is the most useful?
- A. Notification of management changes in the different major divisions
- B. Results of related audits and examinations
- C. Details on inquires received from law enforcement
- D. The total credit exposure for non-cooperative countries and territories
Answer: B
NEW QUESTION # 89
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The Association of Certified Anti-Money Laundering Specialists (ACAMS) is a professional organization dedicated to preventing money laundering and financial crime. The ACAMS CAMS (Certified Anti-Money Laundering Specialists) Exam is a rigorous certification exam designed to test the knowledge and skills of professionals working in the anti-money laundering field. The CAMS certification is highly regarded in the industry and is often a requirement for many AML-related job positions.
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