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

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Total 395 questions

What are the rules imposed by the Office of Foreign Assets Control (OFAC) for legal entities and persons related to the US? (Select Two.)

A.

The head office of a foreign legal entity which has a branch in the US does not need to comply with OFAC rules.

B.

A foreign individual visiting the US for a short vacation is obligated to follow OFAC rules.

C.

Nationals of the US must comply with OFAC rules, regardless of where they are located in the world.

D.

Any foreign corporation is also penalized if it conducts transactions with sanctioned countries under OFAC rules.

E.

A subsidiary of a legal entity of the US, which is formally registered in a foreign country, is exempt from OFAC rules.

Which section of the USA PATRIOT Act relates to forfeiture of funds and allows for extraterritorial reach?

A.

Section 319(b)

B.

Section 314(b)

C.

Section 314(a)

D.

Section 319(a)

Section 319(a) of the USA PATRIOT Act:

A.

Allows the appropriate federal banking agency to require a financial organization to produce, within 120 hours, records or information related to the organization's AML compliance or related to a customer of the organization or any account opened, maintained, administered, or managed in the U.S. by the financial organization.

B.

Provides the U.S. Department of Treasury with the authority to apply graduated, proportionate measures against a foreign jurisdiction, foreign financial organization, type of international transaction, or type of account.

C.

Permits the U.S. Government to seize funds from a correspondent bank account in the U.S. that has been opened and maintained for a foreign bank in the same amount as has been deposited with the foreign bank.

D.

Requires due diligence, and in certain situations enhanced due diligence (EDD), for foreign correspondent accounts, which includes virtually all account relationships that organizations can have with a foreign financial organization and private banking for non-citizens of the U.S.

How does the Financial Action Task Force (FATF) measure the effectiveness of a country's efforts to combat money laundering and terrorist financing?

A.

FATF Evaluation Committee

B.

Series of internal audits followed by reporting to FATF

C.

Basel Committee

D.

Mutual evaluation

Which activities would be considered money laundering red flags when reviewing the business operations of a money services business (MSB)? (Select Two.)

A.

A customer being hesitant to provide beneficiary name or address information when sending international wire transfers

B.

Cash-intensive businesses, such as convenience stores or restaurants, making large cash deposits

C.

A customer exchanging foreign currency from a higher-risk jurisdiction for domestic currency under the reporting threshold

D.

A customer using multiple accounts under different names to conduct transactions

E.

A customer completing frequent small-dollar international money transfers to their native country

When making an independent determination on whether to close an account based on an internal Investigation, a financial institution (F1) should consider. (Select Five.)

A.

reputational risk.

B.

the customers personal relationships.

C.

the frequency of account activity

D.

the Fl's policies and procedures.

E.

the seriousness of the underlying conduct.

F.

correspondence with law enforcement

G.

the legal basis for closing the account.

What are the primary sources of reference besides AML laws and regulations when developing and maintaining the AML policies, standards, and procedures of a bank? (Choose three.)

A.

National Risk Assessment

B.

Regulatory guidance or publications

C.

Government or state-run newspapers

D.

Guidance issued by international bodies

E.

Policies and procedures developed by other banks

Non-compliance with relevant anti-money laundering laws and regulations can result in: (Select Two.)

A.

increased reputation risk.

B.

inclusion on the UN Consolidated List.

C.

civil and criminal penalties

D.

delisting of public filing status.

A law enforcement action alleged that on several trading days over the course of two months, defendants engaged in a series of copper gold, crude oil. and natural gas futures transactions on an electronic trading platform One defendant repeatedly bought future contracts at low prices from the other, and then immediately sold them back at higher prices. As a result, one defendant effectively pocketed the same amount as the other lost even though there were no changes in the open positions held by either defendant.

What is a name for this typology?

A.

Short position

B.

Reverse flip

C.

Bid-ask spread

D.

Wash trading

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)