ACAMS ACAMS Certifications CAMS Questions & Answers

• Question 111:

  Which elements can trigger a review of the existing relationship during the opening of a new account? (Select Two.)

  A. Regular checks on the flow of funds

  B. Recent adverse media on the client

  C. A false positive result for name screening

  D. Incoming transfers from high-risk jurisdictions

  E. Estimated total income decrease

  Correct Answer: BD

  According to the Certified Anti-Money Laundering Specialist (CAMS) Sixth Edition manual, elements that can trigger a review of the existing relationship during the opening of a new account include recent adverse media on the client (page 60) and incoming transfers from high-risk jurisdictions (page 61). The other elements listed, such as regular checks on the flow of funds, a false positive result for name screening, and an estimated total income decrease, are not triggers for a review.

• Question 112:

  Which are key objectives of the Egmont Group? (Select Two.)

  A. Setting international standards that aim to prevent

  B. AML Providing a platform for the secure exchange of financial intelligence

  C. Serving as a prudential regulator for global financial institutions

  D. Serving as an authoritative body in the field of anti-corruption

  E. Serving as a united body of financial intelligence units across the world

  Correct Answer: BE

• Question 113:

  Which does the USA PATRIOT Act stipulate for foreign banks concerning correspondent banking?

  A. US banks that maintain correspondent accounts for foreign banks must keep identification records of foreign bank owners with 50% or more ownership in the bank

  B. A subpoena issued to a foreign bank that maintains a correspondent account in the US can require the bank to submit any records except for records in a foreign jurisdiction.

  C. The US federal banking agency can require foreign banks to produce records or information related to any account opened in the US or other countries.

  D. Illicit funds deposited with a foreign bank can be seized by the US government by confiscating the same amount of funds deposited in a correspondent account in the US.

  Correct Answer: D

• Question 114:

  Which is a goal of Financial Action Task Force Regional-Style Bodies?

  A. Executing sound AML processes in response to recommendations

  B. Enforcing local AML laws and regulations

  C. Analyzing new or developing methods in which criminals or terrorists abuse the financial system in their region

  D. Setting standards to assess whether members have an adequate AML regime

  Correct Answer: C

• Question 115:

  According to the Financial Action Task Force, which action must a financial institution take to fulfill customer due diligence obligations?

  A. Secure a written declaration from the customer confirming the source of the funds.

  B. Obtain information on the intended nature of the banking relationship.

  C. Identify shareholders listed on the stock exchange of corporate entities holding fifty percent of the shares.

  D. Verify the customer is not on any sanction lists.

  Correct Answer: B

• Question 116:

  Which regulation regarding data privacy has to be considered while carrying out a financial crime investigation?

  A. General Data Protection Regulation

  B. European Enforcement Order

  C. Securities Financing Transactions Regulation

  D. Rome II Regulation

  Correct Answer: A

  The General Data Protection Regulation (GDPR) is a regulation issued by the European Union (EU) that sets out requirements for the processing and protection of personal data. It applies to any company that processes personal data of individuals in the EU, and requires organizations to take appropriate measures to protect the personal data of individuals, such as implementing appropriate security measures, limiting the amount of data collected and stored, and providing clear explanations of how the data will be used. In the context of financial crime investigations, the GDPR requires organizations to ensure the security and confidentiality of personal data that they collect and process, and to take measures to ensure that the data is used only for the purpose of the investigation and not for any other purpose.

• Question 117:

  Which of the following employee behaviors would not trigger an AML red flag?

  A. An employee lives a lavish lifestyle that could not be supported by his or her salary.

  B. An employee is involved in an excessive number of unresolved exceptions.

  C. An employee uses company resources to further private interests.

  D. An employee generates high earnings on investments made on the stock market.

  Correct Answer: D

  While this behavior may warrant scrutiny in certain circumstances, it is not inherently suspicious or indicative of money laundering. In contrast, the other behaviors listed (living beyond one's means, excessive unresolved exceptions, and using company resources for personal gain) may suggest that an employee is engaging in or facilitating money laundering activity.

• Question 118:

  How does the Egmont Group assist financial intelligence unit members to accomplish their goals? (Select Three.)

  A. Provides support to expand and systematize cooperation related to the reciprocal exchange of information

  B. Fosters better and secure communication through the application of technology

  C. Develops official lists of suspected terrorists on a globally coordinated basis by relevant authorities

  D. Encourages operational autonomy of financial intelligence units

  E. Maintains uniform global formats for funds transfers that assist in the detection of money laundering

  F. Supplies information on the common money laundering tactics used by terrorists and financial supporters of terrorism

  Correct Answer: ABD

• Question 119:

  Which test should be included in a bank's Office of Foreign Assets Control sanctions screening audit program?

  A. Reviewing wire transfer screening processes to ensure that potential name hits are investigated promptly

  B. Looking at copies of suspicious activity reports filed with regulators to ensure completeness

  C. Ensuring that all clients with foreign identification are subject to enhanced due diligence

  D. Examining Human Resources processes for conducting criminal background checks on executives

  Correct Answer: A

• Question 120:

  A compliance analyst is reviewing the account activity of a customer that they suspect may be indicative of money laundering activity. Which is difficult to determine solely from the customer's account activity and KYC file?

  A. If the activity is materially different from related businesses

  B. If the account has multiple transfers to the same, related businesses

  C. If there is negative media associated with counterparties

  D. If the account is mostly dormant or has little activity

  Correct Answer: C

  According to the Certified Anti-Money Laundering Specialist (CAMS) study guide, 6th edition, page 105, the correct answer is C. It can be difficult to determine if there is negative media associated with counterparties solely from the customer's account activity and KYC file. The study guide explains that negative media can include news articles, government sanctions lists, and other sources of public information that may indicate that a counterparty is involved in illicit activities. However, this information may not be readily available in a customer's account activity or KYC file, and may require additional research or investigation.