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

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Total 313 questions

Business entities established in offshore financial centers (OFCs) pose unique risks for money laundering because they often:

A.

have informal business arrangements between persons or entities.

B.

are located in geographies that are not accountable to US laws.

C.

include trusts, investment funds, and insurance companies.

D.

have limited organizational disclosure and recordkeeping requirements for establishing these business entities.

The primary objectives of the United Nations in developing sanctions regimes include: (Select Three.)

A.

to force developing nations to adopt liberal or substantive democracies.

B.

to support governments and regimes in the peaceful resolution of conflict.

C.

to punish governments for having weak financial crime controls.

D.

to deter non-democratic and non-constitutional changes within countries.

E.

to support the protection of human rights.

Which statement best describes a key money laundering risk associated with virtual asset service providers (VASPs), cryptoassets, and related products?

A.

Cryptoassets can be transferred across borders quickly, but the volatility of their value still makes them less attractive for money laundering compared to traditional assets

B.

Mandatory reporting requirements have been implemented for certain types of crypto transactions, but gaps in regulation and enforcement still leave room for money laundering activities.

C.

The transparency of blockchain technology helps law enforcement trace transactions, but it can also provide criminals with ways to obscure their financial activities through complex layering techniques.

D.

The pseudonymous nature of transactions allows criminals to hide their identities while transferring large sums of money globally, making it difficult to trace the ultimate beneficial owner.

Which of the following actions is specifically permitted or required under FinCEN section 314(b) for financial institutions (FIs) to enhance their efforts in combating money laundering and terrorist financing?

A.

FIs may disclose customer information to any third party

B.

FIs may provide information about their internal compliance programs to law enforcement agencies without any limitations

C.

FIs are required to report all transactions involving foreign entities to FinCEN so that FinCEN can share this information with other financial institutions

D.

FIs may share information about suspected money laundering activities with other FIs to aid in identifying and reporting suspicious transactions

The chief compliance officer at a global bank that operates in the US, EU, and other countries is responsible for navigating the US and EU regulations related to anti-money laundering (AML) and sanctions as well as any local regulations in the countries where it operates.

What should be the primary compliance concern of the bank?

A.

US anti-money laundering regulations are stricter than the EU AML Directives, making it easier for the global bank to be compliant in the EU

B.

US and EU regulations require the bank to build separate compliance teams, making it necessary to establish completely separate systems for US and EU operations

C.

The EU's sanctions regime is stricter than that of the US Office of Foreign Assets Control (OFAC), so the bank must prioritize compliance with EU regulations over US laws and train the staff in Europe accordingly

D.

Balancing compliance with the US BSA and OFAC sanctions while ensuring adherence to EU AML directives and the GDPR, which complicates cross-border data sharing

Which situation involving a vendor presents increased AML and/or sanctions risk to an organization?

A.

The vendor provides services to end users located in an area subject to economic sanctions

B.

The vendor's sales representative was a refugee from a sanctioned jurisdiction as a child

C.

The vendor is organized as a privately held company

D.

The vendor has no individuals that own or control more than 10% of the company

Based on the AML principles outlined by the Wolfsberg Group, what do private and correspondent banks have in common when monitoring for terrorist financing?

A.

Cash access from a pre-paid card increases the potential that the card will be used for money laundering purposes.

B.

Transaction monitoring examines the relationship between due diligence information and account closings.

C.

Account and transactional activity are monitored after the proper identification and verification of customers.

D.

Numbered or alternate name accounts will only be accepted if the bank has established the identity of the client and beneficial owner.

The financial industry relies heavily on rules-based approaches to transaction monitoring to detect suspicious activities.

Scenario-based systems use technology and algorithms to identify: (Choose three.)

A.

fraudulent identities involving stolen or manufactured identification.

B.

suspicious behavior involving a transaction that occurs at an unusual time of day.

C.

hidden beneficial owners.

D.

transaction patterns involving transactions that exceed a certain dollar amount.

E.

anomalies involving a transaction that occurs in a location far away from the customer's usual spending patterns.

Which activities are part of adverse media screening for negative news and reputational risks? (Select Three.)

A.

Analyzing customer sentiment through feedback and surveys

B.

Identifying individuals or entities linked to criminal activities or sanctions

C.

Periodically monitoring regulatory updates and enforcement actions for associated entities

D.

Scanning publicly available news articles and regulatory alerts

E.

Monitoring changes in credit scores of individuals or entities

Which of the following attributes would enhance an AML program's effectiveness?

A.

Providing basic AML training to all employees

B.

An AML officer being appointed to the board as a working member of management with increased authority

C.

Auditors providing prescriptive guidance and support to the program following a less than satisfactory audit

D.

Providing effective challenge with AML staff and continuous cross-training