ACAMS ACAMS Certifications CAMS Questions & Answers

• Question 171:

  Which principles of the Egmont Group of Financial Intelligence Units (Fills) are aimed at maximizing cooperation between FlUs to more effectively combat money laundering? (Select Two.)

  A. Eliminating spontaneous information sharing between FlUs to reduce the burden of excess investigative work.

  B. Information exchange should take place informally, without too many formal prerequisites.

  C. FIU cooperation should always be channeled through designated intermediaries.

  D. Formal Egmont Group membership requirements ensure a high commitment of the eligible FlUs.

  E. It is within an FlU's authority to sign Memorandums of Understanding independently.

  Correct Answer: BE

  The principles of the Egmont Group of Financial Intelligence Units (FILLs) aimed at maximizing cooperation between FILLs to more effectively combat money laundering are [1]:

  B. Information exchange should take place informally, without too many formal prerequisites. (CAMS Manual, 6th Edition, Page 55) E. It is within an FlU's authority to sign Memorandums of Understanding independently. (CAMS Manual, 6th Edition, Page 56)

• Question 172:

  A professional dealer in precious metals and stones in an EU country plans to implement measures to reduce the risk of being misused for money laundering purposes. Which measures are most relevant for achieving this goal? (Select Two.)

  A. Only accept trades related to precious metal pool accounts maintained by sophisticated precious metal companies.

  B. Stop accepting payments from persons other than the beneficiary.

  C. Limit direct contact between customer and employees.

  D. Limit the acceptance of purchases without adequate customer identification information.

  E. Stop accepting cash payments in currencies other than Euro.

  Correct Answer: BD

  The two most relevant measures for a professional dealer in precious metals and stones to reduce the risk of being misused for money laundering purposes are:

  B. Stop accepting payments from persons other than the beneficiary: This measure can help to ensure that the source of funds is legitimate and can be traced back to the customer. D. Limit the acceptance of purchases without adequate

  customer identification information:

  Adequate customer identification information is necessary for the purpose of identifying and verifying the customer's identity and determining whether the customer is a politically exposed person (PEP) or has any other risk characteristics that

  may require enhanced due diligence measures.

• Question 173:

  According to the Financial Action Task Force, financial institutions should be required to implement:

  A. special procedures for encryption of information to be exchanged with affiliates and branches.

  B. independent AML programs to ensure privacy and safeguard confidential information.

  C. a process to designate an officer at a senior level who ensures a safe exchange of information for AML and terrorism financing purposes.

  D. group-wide programs, including policies and procedures regarding AML compliance.

  Correct Answer: D

  According to the web sources I found, FATF Recommendation 18 requires financial institutions to implement group-wide programmes against money laundering and terrorist financing that include policies and procedures for sharing information within the group for AML/CFT purposes. These programmes should also include compliance management arrangements, screening procedures for hiring employees, an independent audit function and ongoing employee training.

• Question 174:

  According to the Financial Action Task Force, as part of their risk assessment, which are important data and information that a Trust and Company Service Provider must understand when establishing and administering a trust? (Select Two.)

  A. The responsibility and authority in the structure

  B. The management structure of the trust

  C. The source of funds in the structure

  D. The general purpose behind the structure

  E. The general nature of business of the trust

  Correct Answer: CD

• Question 175:

  What three attributes do havens for money laundering and terrorist financing typically have? Choose 3 answers

  A. Limited types of institutions and persons covered by money laundering laws and regulations

  B. Little enforcement of the laws, weak penalties or provisions that make it difficult to confiscate or freeze assets related to money laundering

  C. A large number of predicate crimes for money laundering

  D. Absence of an effective FIU

  Correct Answer: ABC

• Question 176:

  Which three actions should employees be instructed to do during an internal investigation?

  A. Provide corporate documents directly to law enforcement

  B. Inform counsel of all request for documentation

  C. Make copies of all documents provided to law enforcement

  D. Keep a log of the documents requested

  Correct Answer: BCD

• Question 177:

  Who bears the ultimate responsibility for approving a financial institution's relationship with a politically exposed person?

  A. Relationship manager

  B. Enhanced due diligence compliance officer

  C. OKYC analyst

  D. Senior management

  Correct Answer: D

  Senior management bears the ultimate responsibility for approving a financial institution's relationship with a politically exposed person (PEP). The institution must ensure that appropriate measures are taken to manage the risks associated with a PEP, including conducting enhanced due diligence and applying appropriate mitigating measures. The relationship manager and the OKYC analyst may identify the risks associated with the PEP and recommend mitigating measures, but it is ultimately the responsibility of senior management to approve the relationship and ensure that the appropriate measures are taken. The enhanced due diligence compliance officer is responsible for ensuring that all due diligence requirements are met.

• Question 178:

  A money remittance business will most likely attract money launderers because it

  1.deals primarily in cash transactions.

  2.engages in international transactions.

  3. conducts transactions for walk-in customers.

  4.does not have to comply with transaction reporting.

  A. 1, 2, and 3 only

  B. 1, 2, and 4 only

  C. 1, 3, and 4 only

  D. 2, 3, and 4 only

  Correct Answer: B

• Question 179:

  Transfers of money over the last 6 months to a corporation in a jurisdiction with strict secrecy laws triggered an alert. Which of the following should cause the most suspicion of money laundering?

  A. The jurisdiction is a known tax haven.

  B. The company has bearer shares.

  C. The corporation director is a European citizen.

  D. No financial statements have been filed for 3 years.

  Correct Answer: A

• Question 180:

  Which action indicates possible Penza scheme activity?

  A. A licensed seller offers higher profit on investments in a high risk country

  B. An unlicensed investment advisor offers profits other investments cannot guarantee

  C. A licensed investment advisor lures aging/retired professionals to invest in securities

  D. A unlicensed investment advisor offers returns that are competitive with industry benchmarks

  Correct Answer: B