ACAMS ACAMS Certifications CAMS Questions & Answers

• Question 191:

  An anti-money laundering specialist has been hired by an independently-owned community bank to implement an anti-money laundering compliance program. This bank has recently seen a dramatic increase in the number of international electronic fund transfers from its commercial clients. The first thing the anti-money laundering specialist should do is:

  A. file a suspicious transaction report on international customers receiving large electronic fund transfers.

  B. conduct a risk assessment of the bank's international electronic fund transfer activity.

  C. develop a new account questionnaire to quantify the level of risk for new international accounts.

  D. close all accounts which have had a dramatic increase in international electronic fund transfer activity.

  Correct Answer: C

• Question 192:

  What is the most effective criterion for determining the beneficial ownership of funds?

  A. Having signature authority over the account

  B. Being the person in whose name an account is opened with a financial institution

  C. Having control over such funds or entitlement to such funds

  D. Being a person who is the trusted party in a correspondent banking relationship

  Correct Answer: B

• Question 193:

  A national Financial Intelligence Unit, which is responsible for receiving, analyzing and disseminating disclosure of financial information, should consider becoming a member of what organization?

  A. The Egmont Group

  B. The Wolfsberg Group

  C. The Financial Action Task Force

  D. The Basel Committee

  Correct Answer: A

• Question 194:

  In which situation can money laundering adversely affect a country's currencies and interest rates due to launderers investing dirty funds?

  A. They invest in high risk ventures with high rates of return

  B. They invest in legitimate companies as a way of making their funds appear to be legitimate

  C. They invest in shell companies in secrecy havens that intentionally manipulate rates

  D. They invest in a way to hide funds rather than get a high rate of return

  Correct Answer: A

• Question 195:

  An internal investigation log is primarily intended to:

  A. Provide training on investigations to the anti-money laundering officer and Financial IntelligenceUnit.

  B. Track the status of investigations into unusual activity.

  C. Report status of investigations to the Board of Directors.

  D. Report status of investigations to the Board of Directors.

  E. Detect and monitor possible suspicious activity.

  Correct Answer: D

• Question 196:

  When a bank performs a risk assessment, what areas should an institution focus on?

  A. The type and location of the institution's clients

  B. The nature and breadth of the services and products the institution provides

  C. The geographic locations where the institution does business

  D. The amount of the money the institution earns prior to taxes

  Correct Answer: ABC

• Question 197:

  Which of the following reflect money laundering risk indicators in relation to a securities account?

  1.

  A high level of activity in that securities account immediately followed by a high volume of securities transactions.

  2.

  Frequent wire transfers into an account immediately followed by debit card transactions.

  3.

  Frequent wire transfers into an account immediately followed by checks (cheques) or other payment instruments drawn on the account.

  A. 1 and 2 only

  B. 1 and 3 only

  C. 2 and 3 only

  D. 1, 2, and 3

  Correct Answer: C

• Question 198:

  A bank customer operates a fuel station as a sole proprietorship. The customer places deposits and other credits in a business account. The customer routinely transfers money from the business account to a brokerage account where he invests in money market securities. The customer also routinely makes monthly transfers to a credit card and line of credit to pay off balances. The volume of activity flowing through the business account has doubled in the past 3 months. An internal investigator reviews business account statements and credit card activity for the past 3 months, scans media articles about the customer, and interviews the account officer about the customer and account activity. This internal investigation did not provide an explanation for the increased activity1.

  Which of the following should the anti-money laundering specialist recommend to the internal investigator?

  A. Concentrate on trades made in the brokerage account.

  B. Review activity in all related customer accounts in the past year.

  C. Analyze account activity for selected accounts since the accounts were opened.

  D. No additional steps are necessary because this was a thorough review of the activity.

  Correct Answer: C

• Question 199:

  The anti-money laundering specialist of a small bank has identified suspicious activity at a branch located in an area of town where drug dealers are known to operate. An investigation of this activity discloses that the suspicious transactions occurred within the last 3 months and were processed by the same teller (cashier). The teller (cashier) did not file an internal report of unusual activity on these transactions. When checking personnel files, the specialist finds that the teller (cashier) has been a trusted employee for over 15 years, has an impeccable work record, and has participated in several anti-money laundering training sessions. The specialist recently became aware that the employee's daughter has contracted a rare disease and is undergoing a very expensive treatment program. Regarding the teller's (cashier's) failure to report the unusual activity to the institution, the specialist should recommend:

  A. Continuing to monitor the accounts.

  B. Refreshing anti-money laundering training for the teller (cashier).

  C. Directing the teller (cashier) to file a suspicious transaction report.

  D. Suspending the teller's (cashier's) employment.

  Correct Answer: A

• Question 200:

  Following a recent exercise which explained how a correspondent banking operation could be used by money launderers, an anti-money laundering specialist decided to re-write the due diligence procedures for entering into agreements with foreign financial institutions. Which of the following information should be included to establish a rigorous "Know Your Respondent" procedure?

  1.Respondent's management, nature of license, and major business activity.

  2.

  Computer equipment and software capability.

  3.

  The quality of supervision in the home country.

  4.

  Respondent's location, in particular the existence of a real physical presence.

  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