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

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Total 313 questions

Money services businesses (MSBs), payment service providers, and e-commerce platforms usually have a high volume of daily transactions.

What are the risks associated with these types of businesses? (Choose two.)

A.

These businesses are all cash intensive, increasing the risk of financial crime

B.

KYC challenges arise because e-commerce platforms face global customers making customer due diligence complex and resource intensive

C.

These businesses are highly regulated and therefore have no reason to be non-compliant as this would put them at risk of sanctions and fines

D.

Criminals can make use of identify fraud to fulfill KYC processes for layering purposes

E.

The settlement systems of these businesses are not sophisticated enough to cope with the high transaction volume

Which collective body of Financial Intelligence Units (FlUs) was formed with an objective to improve Information exchange and sharing mechanisms among member FlUs as well as to support its members by enhancing their capabilities'?

A.

The Organisation for Economic Co-operation and Development (OECD)

B.

The Egmont Group

C.

The Wolfsberg Group

D.

The International Monetary Fund (IMF)

Which characteristic of accountants is most attractive to those looking to launder funds using an accountant or accountancy firm?

A.

Accountants can prepare ledgers and spreadsheets, draft annual returns and make payments to government offices

B.

Accountants can advise on the structuring of companies as well as ensure compliance with local tax regulations

C.

Accountants are knowledgeable about financial management, including what to record over the course of the accounting year

D.

Accountants are able to create and structure companies, falsify accounts and manipulate financial statements

Which of the following serves as an example of a successful public-private partnership (PPP)?

A.

The Financial Action Task Force (FATF)

B.

The AUSTRAC Fintel Alliance

C.

The Egmont Group

D.

The Wolfsberg Group

Which of the following is a common strategy employed by non-governmental organizations (NGOs) to combat money laundering?

A.

Helping Financial Intelligence Units (FIUs) to analyze the suspicious activity reports (SARs)

B.

Directly prosecuting money launderers in court

C.

Providing financial assistance to governments to strengthen their anti-money laundering efforts

D.

Raising awareness about the issue of money laundering and its consequences

The transaction monitoring system of a bank generated an alert for a car wash client. After making large cash deposits, the client orders international wire transfers.

Which additional circumstances would make the case more suspicious?

A.

The beneficiary of the wire transfers is a foreign company whose shareholders and director are other companies

B.

The wire transfers are for different amounts but with the same beneficiary

C.

The beneficiary of the wire transfer is a resident of a grey-list country

D.

The beneficiary of the wire transfers is a resident of a foreign country bearing the same family name as the business owner

Which of the following entities could potentially pose a higher money laundering risk and require additional review prior to onboarding? (Select Two.)

A.

A large multinational corporation with extensive, documented wire transfer activity

B.

A local convenience store that replenishes the onsite automated teller machine (ATM) with cash from its till

C.

A local used car sale lot that allows individuals to pay their monthly bill in cash

D.

A virtual asset service provider (VASP), facilitating peer-to-peer cryptocurrency transactions

Which o! the following are considered best practices regarding senior management involvement in a financial crime compliance program? (Select Two.)

A.

Mandatory participation in all regulatory inspections

B.

Mandatory attendance and review of alt financial crime trainings

C.

Setting clear criteria for escalations to senior management

D.

Setting tone from the top

A Financial Intelligence Unit (FIU) serves as a national center for the receipt and analysis of suspicious activity reports (SARs) and can obtain additional information from other reporting entities relevant to:

A.

public administration.

B.

legal assessment.

C.

law enforcement.

D.

legal activity.

An agent of a wealthy individual residing in Country A, which is on the EU list of high-risk third jurisdictions, approaches a notary in Country B, which is in the EU. The agent wants to complete a disposal of assets recently acquired at auction by the wealthy individual through an offshore company. The agent also has a power of attorney to act on behalf of the offshore company issued by a respectable law firm from Country C, which is also in the EU. The agent asks the notary to proceed with the disposal as quickly as possible without paying any specific attention to related costs or taxes to be paid as a result of this transaction. The notary notices the intended transfer price is significantly lower than the one recorded at auction, but the agent does not want to discuss this matter and claims that it is not covered by the power of attorney.

Which red flags should the notary consider? (Select Two)

A.

The agent requested a disposal of assets at a lower price than recently acquired.

B.

The assets acquired through an auction were put in the name of an offshore company

C.

The agent acted on behalf of an individual residing in a country which is on the EU's list of high-risk jurisdictions

D.

The power of attorney was issued by a law firm in a different EU country from where the transaction took place.