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

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Total 313 questions

What is the relationship between the EU Anti-money Laundering Directives (AMLD) and local anti-money laundering (AML) regulations in European Union (EU) member states, in terms of their relevance for, applicability to, and impact on EU banks? (Select Two.)

A.

The EU AMLD and local AML regulations are separate and unrelated legal frameworks.

B.

The EU AMLD and local AML regulations must have identical requirements.

C.

Local AML regulations may impose additional or more stringent requirements than the EU AMLD.

D.

The EU AMLD take precedence over local AML regulations.

E.

Local AML laws and regulations override the requirements of the EU AMLD.

F.

The EU AMLD provide a framework that member countries must implement through local AML regulations.

Which of the following controls is typically implemented at customer onboarding to mitigate the risk of onboarding high-risk customers?

A.

Enhanced due diligence (EDD)

B.

Transaction monitoring

C.

Customer risk assessment

D.

Sanctions screening

When under a regulator's consent order or similar action, who at an organization is ultimately accountable for the remediation of any violations of applicable AML/CFT laws and regulations?

A.

Designated AML compliance officer

B.

Chief executive officer

C.

Chief operating officer

D.

Board of directors

According to the Basel Committee principles, which actions would make a customer identification program at a bank more robust? (Select Two.)

A.

Understanding why a customer has selected a particular financial institution for banking

B.

Verifying the identity of a customer with reputable online source documentation

C.

Limiting the online activities of a new customer during the first two months

D.

Understanding the nature and purpose behind a new business opening an account at the bank

A trust and company services provider that offers a variety of services to businesses is approached by a client interested in establishing a new company. The client requests assistance with the incorporation process, a local business address, annual maintenance services, and the designation of individuals to serve in official capacities for the new company.

Which of the following services involves a higher money laundering risk?

A.

Appointing individuals to serve in official capacities of the company

B.

Annual maintenance services

C.

Provision of a local business address

D.

Company incorporation services

A compliance officer at a financial institution has completed an investigation into a high-risk customer's activities and determined that there are strong indications of money laundering. The compliance officer has documented their findings and is ready to recommend offboarding the customer. However, the relationship manager responsible for the customer is resistant to the idea, citing the customer’s significant revenue contribution to the institution.

What should the compliance officer do next to ensure the appropriate escalation and decision-making process is followed?

A.

Escalate the matter to the institution's high-risk client committee, presenting the investigation findings and recommending offboarding while also acknowledging the relationship manager's concerns

B.

Proceed with offboarding the customer unilaterally based on their investigation findings and anti-money laundering (AML) concerns

C.

Attempt to persuade the relationship manager to agree with the offboarding recommendation by highlighting the potential reputational and regulatory risks associated with maintaining the relationship

D.

Delay the offboarding decision and continue monitoring the customer's activities, waiting for further evidence to solidify the case for termination

Which red flags could indicate increased terror financing and money laundering risks related to cultural objects? (Select Three.)

A.

Engagement of third-party art advisors as representatives at art auctions

B.

High-quality single pieces of significant value sold on social media platforms

C.

Use of art and antiquity experts to verify an item's authenticity

D.

Paying fair market value or premium prices for valuable art, gems, or precious metals at auction

E.

Use of art storage facilities located in tax-free zones

Which of the following are benefits of the latest KYC solutions, including but not limited to digital onboarding, eKYC, digital identity, facial recognition, liveness checks, biometrics, and geolocation? (Choose three.)

A.

Guaranteeing 100% accuracy in regulatory compliance across all jurisdictions

B.

Improving customer satisfaction by offering personalized recommendations

C.

Reducing identity theft effectively

D.

Providing reliable customer authentication to enhance trust

E.

Decreasing the time required for customer authentication

The chief compliance officer (CCO) at a bank approved offering trade finance services to a company which is established within a country with a weak democratic system routinely reviews news on upcoming targeted economic sanction regulations in the EU, a major import partner for the country's production of crude oil.

Which of the following pieces of news would be of greatest concern?

A.

The European Commission and the High Representative issue a joint proposal for an import ban on refined oil products.

B.

The European Commission and the High Representative issue a joint proposal for an import ban on oil extraction equipment

C.

The Council of the European Union adopts a new export control regime for electronic equipment

D.

The Council of the European Union adopts a new import restriction regime for goods coming from countries that do not respect human rights

Using artificial intelligence (Al) and machine learning-based techniques tn adverse media screening can: (Choose three.)

A.

ensure that all adverse media sources are comprehensively analyzed without the need for human review.

B.

significantly reduce human errors arising from repetitive tasks by delivering consistent and highly accurate analysis.

C.

instantly identify intent behind media articles, allowing for more effective risk scoring.

D.

automate the process of identifying new information and distinguishing it from previously encountered data.

E.

cover multiple languages and scripts, surpassing the limitations of human linguistics.