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ACAMS CAMS - Certified Anti-Money Laundering Specialist (CAMS7 the 7th edition)

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Total 395 questions

When deciding on the frequency of periodic customer due diligence (CDD) refresh, firms should foremost consider the:

A.

Risk profile of customers

B.

Available level of automation for the process

C.

Operational burden of periodic refresh implementation

D.

Cost of implementation

A financial crimes risk appetite statement describes:

A.

how an organization defines Its risk-based approach.

B.

how an organization determines its key risk and performance indicators.

C.

the level and type of risk the organization is willing to take to meet its objectives

D.

the purpose of an organization's financial crimes compliance program.

An AML compliance officer is drafting plans to address deficiencies identified in an independent audit.

Which approach is the best option?

A.

Only commit to action plans that require no new investment to maximize shareholder value

B.

Draft action plans in consultation with the jurisdiction's FIU to remain aligned with other similar companies

C.

Only commit to action plans that can be implemented and closed within the three-month management reporting cycle

D.

Draft action plans to address the root cause of the deficiencies, regardless of how long they will take to fully implement

Which money laundering risks are posed by the misuse of trust and asset management services? (Select Three.)

A.

Concealing sources of funds

B.

Allowing for third-party custody safekeeping of funds

C.

Adding a layer of anonymity to transactions

D.

Concealing true legal and beneficial owners

E.

Establishing escrow accounts for real estate transactions

A sound AML compliance program requires a comprehensive governance framework that addresses key elements to ensure the integrity of the financial system.

Which element forms the starting point of an effective AML compliance program?

A.

Ongoing monitoring

B.

Risk assessment

C.

Policies and procedures

D.

Suspicious activity reporting

E.

Customer due diligence

Which of the following measures is one that the FATF recommends that Financial Institutions and Designated Non-Financial Businesses and Professions (DNFPB) take to mitigate risks arising from business relationships with foreign politically exposed persons (PEPs)?

A.

Raise transaction monitoring thresholds for PEP accounts in automated systems to account for higher transaction values and complex legal vehicles and financial structures

B.

Require approval from the prudential regulator for entering into or continuing the business relationship

C.

Subscribe to commercial databases to assist in the detection of PEPs

D.

Establish processes to understand the PEP's source of wealth and the source of funds, and to refresh that understanding on a regular basis

Which should be provided to the board of directors or designated specialized committee when preparing suspicious activity reports (SARs)?

A.

Statistical data regarding SARs filed during the reported period

B.

All possible details of SARs filed during the reported period

C.

Copies of all SARs filed during the reported period

D.

Names of all customers subject to SARs filed during the reported period

When a multinational organization develops its anti-financial crime (AFC) program, what is the most important consideration for ensuring compliance across different jurisdictions?

A.

Ensuring sanctions coy on international bodies like the UN because there is no requirement to adhere to local laws.

B.

Ensuring group policies and procedures prioritize adherence to US regulations because they are the most influential worldwide.

C.

Applying global AFC and sanctions policies to ensure consistency without the need to adapt to local regulations.

D.

Ensuring group policies cater to compliance with each country's specific AML and sanctions regulations.

A bank is using a network analysis tool to identify links between its customers and criminal entities. The system identifies potential indirect relationships but is unable to prioritize them. What should the compliance officer do to enhance the tool’s effectiveness?

A.

Manually review all flagged relationships for accuracy

B.

Implement risk-scoring algorithms for indirect connections

C.

Integrate external databases and social media profiles to cross-check flagged entities

D.

Focus on direct connections between customers and criminal entities

Which regulation permits financial institutions, upon providing notice to the US Department of the Treasury, to share information with one another in order to identify and report activities that may involve money laundering or terrorist activity to the federal government?

A.

Regulation (EU) 2024/1624 of the European Parliament

B.

Collaborative Sharing of Money Laundering/Terrorism Financing (ML/TF) Information & Cases (COSMIC)

C.

USA Patriot Act Section 314(a)

D.

USA Patriot Act Section 314(b)