ACAMS ACAMS Certifications CAMS Questions & Answers

• Question 231:

  The bank's internal financial intelligence unit (FIU) has reviewed activity related to a politically exposed person (PEP); the activity in the account contains a large, round number, one time wire to an obscure organization. Which would not be a sufficient reason to file a SAR/STR?

  A. Beneficiary is largely unknown

  B. Maintain the bank's reputation

  C. Wire is a large amount

  D. Customer activity is unreasonable

  Correct Answer: B

• Question 232:

  An anti-money laundering specialist is concerned that several suspicious transaction reports will discuss potential illegal activity of bank employees. In this situation, which of the following is the immediate concern for the institution?

  A. Prohibiting distribution of suspicious transaction report copies to the Board.

  B. The timing of the presentation of suspicious transaction reports to the competent authority.

  C. The type of form to be used when reporting to the Board.

  D. Ensuring no delay in informing the Board.

  Correct Answer: D

• Question 233:

  Which practices are dealers in antiques, precious metals, precious stones, jewelry, and art advised to follow to reduce the element of money laundering risk? Choose 3 answers

  A. Insist on all vendors signing a declaration that the item placed by them for sale was not stolen or acquired through illegitimate means

  B. Verify the identities of all new vendors and customers and conduct due diligence on them

  C. Avoid accepting cash payment from the buyers

  D. Insist all vendors submit an appropriate license issued by enforcement agencies authorizing the sale

  Correct Answer: ABC

• Question 234:

  A charity has unaudited accounts. Which of the following represents the highest risk factor for terrorist financing?

  A. Disbursement of funds to entities unrelated to the purpose of the charity.

  B. An international board composed of politically exposed persons.

  C. Frequent deposits from third parties into the charity's bank account.

  D. Frequent changes to the senior management of the charity.

  Correct Answer: C

• Question 235:

  The main purpose of the US Treasury Department for OFAC's extraterritorial reach is to:

  A. accomplish the foreign policy and national security goals of the US.

  B. defend the US against questionable trade practices of its economic rivals.

  C. protect allied nations of the US from the economic threats of non-allied nations.

  D. align OFAC's and other countries' extraterritorial reach requirements.

  Correct Answer: A

• Question 236:

  The bank's Compliance Officer is tasked with designing standards based on Basel's KYC principles. Which essential elements should be included in the program? (Choose two.)

  A. Appointing an independent audit function

  B. Conducting a money laundering risk assessment

  C. Documenting a customer acceptance policy

  D. Establishing on-going monitoring of high-risk accounts

  E. Reporting suspicious activity

  Correct Answer: CD

• Question 237:

  A SAR/STR should be filed when the accountable institution identifies that: A. a customer makes a cash deposit in round dollars.

  B. cash transactions have values which avoid reporting thresholds.

  C. an alert is generated by a transaction monitoring system.

  D. an employee is not clearing alerts in a timely manner.

  Correct Answer: B

• Question 238:

  An analyst reviewing trade finance transactions notices an increase in price of 25% over 12 months for commodities with the same specification and quantity. Which action should the analyst take?

  A. Produce an investigation report that finds evidence to substantiate the analyst's suspicion and submit a SAR/STR.

  B. Produce an investigation report that considers client activity and factors that may have legitimately affected transaction cost.

  C. Produce an updated due diligence record for the client so that monitoring can be enhanced.

  D. Produce a SAR/STR that describes apparent trade-based money laundering and submit to the Financial Investigation Unit (FIU).

  Correct Answer: B

• Question 239:

  Which key factor would result in the decision for a financial institution (FI) to exit a client relationship?

  A. After assessing all risk factors the level of residual client risk exceeds the FI's risk appetite.

  B. The client is a registered charity known to remit funds to high risk geographies where there is limited due diligence information available.

  C. Closing the client accounts will help reduce the number of transaction monitoring alerts.

  D. Client transactions generate ongoing transaction monitoring alerts that did not result in any SAR/STR filings.

  Correct Answer: A

• Question 240:

  Which situations would require a financial institution (FI) to update its ML/TF risk assessment? (Choose two.)

  A. When new products, services or customer types are introduced

  B. When new board members are elected

  C. When the AML compliance team hires new employees

  D. When the institution faces a merger or acquisition

  E. When opening a sales point in a new location in the same city

  Correct Answer: AD