New Year Sale Special Limited Time 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: xmas50

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

ACAMS CAMS Premium Access     Download Demo    
Page: 9 / 10
Total 313 questions

Perpetual KYC includes: (Choose two.)

A.

triggers identifying static data changes and data based on client's behaviors in real time.

B.

periodic refreshing at one-, three- and five-year cycles.

C.

ability to prioritize better based on client data rather than driven by schedules alone.

D.

classification of clients into categories of risk.

The compliance officer at a casino in Taiwan discovers that the casino received multiple cash deposits from a customer just below the Large-Amount Transaction Report (LTR) limit on consecutive days. The customer used three different betting accounts.

What is the appropriate next step?

A.

Make a note in the customer's account that the customer's gambling activities are frequently conducted below the reporting limit

B.

Follow internal reporting procedures to escalate the activity as suspicious and report to appropriate authorities

C.

Inform the customer their activity Is suspicious and request an explanation

D.

Contact law enforcement to launch an Investigation into the customer's financial activities

What is the primary advantage of using a risk-based approach in allocating compliance resources?

A.

It reduces the overall cost of compliance programs.

B.

It eliminates the need for periodic audits of low-risk customers.

C.

It ensures focus on high-risk areas while maintaining operational efficiency.

D.

It standardizes compliance processes across all regions.

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

The Financial Action Task Force (FATF) routinely publishes a catalogue of jurisdictions requiring enhanced monitoring which is commonly called the:

A.

red notice

B.

white list

C.

yellow notice

D.

grey list

The owner of a real estate investment company deposits multiple cashier's checks that were bought using cash over a three-month period, from the sale of two apartments. This account also receives several electronic transfers from other financial institutions for US$10,000 each.

What activity is considered suspicious of money laundering?

A.

Receiving electronic transfers for US$10,000 amounts from other financial institutions

B.

Using cash to buy multiple cashier's checks over a period of time

C.

Performing operations with real estate investment companies

D.

Using cashier's checks in the transactions with the real estate investment company's account

Which of the following are included in the 11 Immediate Outcomes outlined in the Financial Action Task Force (FATF) methodology for assessing technical compliance with the FATF Recommendations and the effectiveness of AML/CFT/CPF systems during mutual evaluations? (Select Three.)

A.

International cooperation provides actionable information to use against criminals

B.

Those convicted of money laundering offenses are denied access to basic banking services

C.

Money laundering offenses are investigated and criminally prosecuted

D.

Financial intelligence information is collected by authorities and shared with the FATF for further investigation

E.

Supervisors regulate financial institutions and non-bank financial institutions and their risk-based AML/CFT programs

Which of the following presents the highest money laundering risk from a money services business (MSB)?

A.

Some MSBs provide bureau de change services to retail customers after they complete a due diligence process.

B.

Some MSBs process large, individual cash transactions on behalf of customers.

C.

Some MSBs allow regular and frequent transactions to the same family members based in another country

D.

Some MSBs process small remittance payments on behalf of workers based abroad sending money home.

A large financial institution (FI) is considering expanding business to an area of the world with weak AML laws. The risk-based assessment indicates that the location will increase the FI's risk appetite beyond the stated acceptable amount.

Which risk factors should be used to identify the priority of the FI?

A.

Cash-intensive businesses risks

B.

Unknown third-party risks

C.

Geographic risks

D.

Anonymous transactions risks

An employee in a corporation's finance department hears news of an internal investigation into potential fraud within the company, quits her job, and disappears.

If they had been observed before her resignation, which characteristics of the employee would have been considered red flags? (Select Two.)

A.

The employee was originally from a high-risk jurisdiction

B.

The employee had friends in high-risk industries

C.

The employee had a lavish lifestyle for her income

D.

The employee was constantly evasive about the reasons for leaving her previous corporate finance job