ACAMS ACAMS Certifications CAMS Questions & Answers

• Question 121:

  Which regulatory bodies cooperate when dealing with cross-border suspicious or unusual financial activity investigations?

  A. European Commissions

  B. Financial Intelligence Units

  C. Wolfsberg Groups

  D. Financial Action Task Forces

  Correct Answer: B

  Financial Intelligence Units (FIUs) are the primary channels for sharing financial intelligence both within countries and across borders. FIUs cooperate with each other and other relevant law enforcement, regulatory, or intelligence agencies in the fight against money laundering, terrorism financing, and other financial crimes.

• Question 122:

  A law enforcement agency is conducting an investigation of a financial institution (Fl). How should the Fl respond to the law enforcement agency's requests?

  A. Disregard requests when there is a justifiable reason for doing so.

  B. Share information about the investigation with analysts so they are aware.

  C. Delay responses by informing senior management of requests.

  D. Address all requests completely and in a timely manner.

  Correct Answer: D

  The Certified Anti-Money Laundering Specialist (the 6th edition) Study Guide states that financial institutions should address all requests from law enforcement agencies completely and in a timely manner (Page 83). Disregarding requests when there is a justifiable reason for doing so is not recommended, as this could impede the investigation. Sharing information about the investigation with analysts is not recommended, as this could compromise the investigation. Delaying responses by informing senior management of requests is also not recommended, as this could result in a delay in the investigation.

• Question 123:

  Why should a financial institution (Fl) require an update of its AML risk assessment?

  A. To identify risk considerations for sharing information based on Fl changes

  B. To ensure an accurate reflection of the Fl's money laundering and other illicit financial activity risks

  C. To satisfy law enforcement when reporting suspicious activity

  D. To ensure the Fl's alignment with the board-approved strategic plan

  Correct Answer: B

  A financial institution should regularly update its AML risk assessment in order to ensure that the results of the assessment are accurate and reflect the current money laundering and other illicit financial activity risks that the institution may face. This helps to ensure the institution has a comprehensive understanding of the risks associated with its activities and can implement adequate controls and procedures as necessary.

• Question 124:

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

  A. Mutual evaluation

  B. FATF Evaluation Committee

  C. Basel Committee

  D. Series of internal audits followed by reporting to FATF

  Correct Answer: A

  "The FATF measures the effectiveness of a country's efforts to combat money laundering and terrorist financing through a mutual evaluation process. During a mutual evaluation, the FATF assesses a country's legal and institutional framework, its implementation of measures to combat money laundering and terrorist financing, and the effectiveness of its efforts. The FATF then issues a report with recommendations for improvement" [CAMS Study Guide 6th edition, page 15-16].

• Question 125:

  Release of the EU's Fourth AML Directive resulted in what change to member state*s procedures? (Select Two.)

  A. The threshold for reporting suspicious transactions decreased from 15,000 EUR to 10,000 EUR.

  B. All financial institutions were required to identify and verify the beneficial owner of legal entities.

  C. Money laundering and terrorist financing were defined as separate crimes, expanding the directive's measures.

  D. The scope of obliged entities was enlarged from casinos to all providers of gambling services.

  E. Knowledge of criminal conduct could be inferred from objective factual circumstances.

  Correct Answer: AD

• Question 126:

  A company service provider in Country A sets up a corporate structure for a client from Country B, which is known for corruption. The corporate structure includes a holding company in Country A with a bank account in one of the international banks located there. During on-boarding, the client's wealth was estimated at 7.52 million USD. Shortly thereafter, the client's father became president of Country B During a routine client review two years later, it was identified that the client's wealth had grown to 510 million USD. Which are two red flags that indicate money laundering or financial terrorism? (Select Two.)

  A. The substantial growth in wealth during a short period of time.

  B. The client is from a country known for corruption.

  C. The client is a family member of a politically exposed person from a country known for corruption.

  D. The holding company is in Country A with a bank account in one of the international banks.

  E. The clients account has not been reviewed for 2 years.

  Correct Answer: AC

  According to the Financial Action Task Force (FATF), substantial growth in wealth during a short period of time is a red flag for money laundering or terrorist financing. Additionally, when a client is a family member of a politically exposed person (PEP) from a country known for corruption, it raises concerns about the potential for corruption, bribery, or influence peddling. In this case, the client's father became the president of Country B, which makes him a PEP. Reference: Certified Anti-Money Laundering Specialist (CAMS) Study Guide, 6th Edition, page 185-186.

• Question 127:

  When considering sharing information across the institution or within the same jurisdiction, what is the key legal issue that poses challenges to sharing customer-related information?

  A. Data protection and privacy laws

  B. Consumer protection laws

  C. Conflicting AML regulations

  D. Technological inconsistencies and challenges

  Correct Answer: A

  When considering sharing information across the institution or within the same jurisdiction, the key legal issue that poses challenges to sharing customer-related information is data protection and privacy laws. Data protection and privacy laws exist in most countries and can vary significantly from jurisdiction to jurisdiction. These laws place restrictions on how customer data can be used, shared, and stored, and can limit the ability of financial institutions to share customer-related information with each other. Additionally, these laws may also require financial institutions to take additional steps to ensure the protection of customer data.

• Question 128:

  A US casino customer has won 55,518 USD. The customer goes to the casino cashier cage to execute some transactions. Which ^transactions are an indicator of money laundering? (Select Two.)

  A. The customer transfers 100.000 USD to another personal bank account located outside the customer's resident country,

  B. The customer requests the cashing out of the winnings in checks under 10.000 USD.

  C. The customer transfers all the winnings to another personal bank account located outside the customer's resident country.

  D. The customer requests the cashing out of the winnings in a single check.

  E. The customer transfers 50.000 USD to another personal bank account located in the customer's resident country.

  Correct Answer: AB

  These options involve transferring funds to another country, which could indicate cross- border movement of illicit funds, and cashing out winnings in checks under 10,000 USD, which could indicate structuring to avoid reporting thresholds. The other options do not seem as suspicious or relevant to money laundering.

• Question 129:

  Which statements relate to the mandate, roles, and responsibilities of the Financial Action Task Force (FATF) and the FATF-Style Regional Bodies (FSRBs)? (Select Two).

  A. In the process of setting standards. FATF will only consider inputs from its member countries as part of the consultation process.

  B. FSRBs have the right to develop standards with which their member countries are bound to comply.

  C. FSRBs play an essential role in identifying and addressing AML technical assistance needs for their individual member countries.

  D. FATF and FSRBs are free-standing organizations that share the common goals of combating money laundering and the financing of terrorism and proliferation.

  E. FATF member countries cannot be members of an FSRB at the same time.

  Correct Answer: CD

  C. FSRBs play an essential role in identifying and addressing AML technical assistance needs for their individual member countries. The FSRBs are responsible for promoting the effective implementation of the FATF Recommendations at the regional level, including by assisting member countries in identifying technical assistance needs and facilitating the provision of such assistance. D. FATF and FSRBs are free-standing organizations that share the common goals of combating money laundering and the financing of terrorism and proliferation. The FATF is an intergovernmental body that sets global standards for AML/CFT and promotes their effective implementation, while the FSRBs are regional organizations that work to promote the effective implementation of the FATF Recommendations at the regional level.

• Question 130:

  A company is endorsing the execution of terrorism through different activities, such as developing content for pro-terrorist television messages, encouraging the support of terrorist activities via the web, advertising the use of cryptocurrencies, and paying producers and reporters for television and web messaging. What specific action should be considered financing of terrorism?

  A. Encouraging supportive web messages

  B. Paying producers and reporters for television and web messaging

  C. Developing pro-terrorist content

  D. Advertising the use of cryptocurrencies

  Correct Answer: B

  Financing terrorism generally refers to providing money or other support, such as personnel or technology, to terrorist activities. This can include providing funds to terrorist networks, providing services to support terrorist operations, and providing resources to support terrorist activities. In this case, paying producers and reporters for television and web messaging would be considered financing of terrorism, as it is providing support for terrorist activities.