Which type of formal agreement occurs between countries that wish to aid each other in the investigation and enforcement of criminal laws?

Joint Comprehensive Peace Agreement

Inter-country Agreement to Combat Trafficking

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

General Data Protection Regulation

Securities Financing Transactions Regulation

Which red flags should be considered prior to establishing a relationship with a third party? (Select Two.)

The third party has a lack of anti-corruption compliance clauses in agreements.

The third party has requested unusual payment or billing procedures.

The third party has a lack of anti-corruption compliance clauses in agreements.

The third party's amount to be paid for goods and services appears to be reasonable.

The third party has requested unusual payment or billing procedures.

The third party has a declaration of non-family or business ties with government officials.

The third party has sufficient capability to provide the services or goods for which it is being engaged.

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

Recent adverse media on the client

Incoming transfers from high-risk jurisdictions

Regular checks on the flow of funds

Recent adverse media on the client

A false positive result for name screening

Incoming transfers from high-risk jurisdictions

Estimated total income decrease

The AML compliance officer of a financial institution (Fl) has been advised that the institution is being investigated by the country's financial intelligence unit (FIU). What should the AML compliance officer do? (Select Two.)

inform senior leadership and the board of the investigation.

Monitor the progress of the investigation by keeping clear records.

inform senior leadership and the board of the investigation.

Share investigation results with other FIs to help them prepare.

Monitor the progress of the investigation by keeping clear records.

Send an informative communication to all employees about the investigation.

Provide all information to the FIU as soon as possible to avoid delays.

A large financial institution (Fl) is considering expanding business to an area of the world with weak AML laws. The risk-based assessment indicates that the location will increase the Fl's risk appetite beyond the stated acceptable amount. Which risk factors should be used to identify the priority of the Fl?

Cash-intensive businesses risks

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

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

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

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

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

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

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

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

Which transaction should result in a suspicious activity report filing?

A small business owner deposits checks totaling 9,950 USD on a daily basis without providing a legitimate purpose.

A small business owner deposits 25.000 USD in cash proceeds with a business equipment bill of sale.

A national food-chain restaurant makes multiple, anticipated cash transactions that are above the daily reporting threshold.

A national food-chain restaurant with multiple cash transactions at various branch locations.

Which statement is true regarding the Financial Action Task Force standards for suspicious activity reports (SARs) information sharing within a financial group?

Financial institutions should establish sufficient safeguards concerning the confidentiality of information shared for AML purposes.

Financial institutions must require approval from regulators to share SARs information and supporting documentation.

Financial institutions must retain copies of SARs and supporting documentation for five years from the date of filing the SARs.

Financial institutions cannot share customer information at all since it is confidential.

Which are the requirements of the Filth AML Directive of the EU? {Select Two.)

Promoting the record keeping obligations of banks to the maximum amount of data necessary for the purposes of AML investigations

Extending AML rules to entities that provide virtual currency services

Promoting the record keeping obligations of banks to the maximum amount of data necessary for the purposes of AML investigations

Broadening the criteria for assessing high-risk third countries

Extending AML rules to entities that provide virtual currency services

Developing a variant approach m the strategy for the treatment of organized crime and terrorism threats

Providing information access to financial intelligence units according to the differences in the nature of their functions, competences, and powers

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.)

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

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

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

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

FIU cooperation should always be channeled through designated intermediaries.

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

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

Potential indicators of money laundering associated with Trust and Company Service Providers include: (Select Two.)

use of legal persons in jurisdictions with strict secrecy laws.

multi-jurisdictional wire transfers with no legal purpose.

use of legal persons in jurisdictions with strict secrecy laws.

structuring cash deposits into third party accounts.

multi-jurisdictional wire transfers with no legal purpose.

generation of rental income to legitimize illicit funds.

frequent deposits to or withdrawals from bank accounts.

Sanctions screening requirements include that a financial institution should:

compare customer and transaction records against periodically updated sanctions lists provided by governmental bodies.

report an individual whose name appears on a sanctions list to the police.

immediately freeze the bank account of an individual that appears on a sanctions list.

compare customer and transaction records against periodically updated sanctions lists provided by governmental bodies.

immediately close the bank account of an entity who appears on a sanctions list.

A compliance officer of a financial institution is reviewing a payment for sanctions compliance between two parties in Europe and Asia. The payment is in Euros and involves the provision of services to a company located in a jurisdiction subject to Office of Foreign Assets Control secondary sanctions. Which factor is most important in determining the compliance officer's response?

The threat of US sanctions against foreign individuals and entities continues to exist despite the absence of a US nexus.

Asset freezes only prohibit US companies from engaging in certain activities with counterparts from a sanctioned jurisdiction.

A one-off commercial transaction conducted between parties in Europe and Asia is not subject to secondary sanctions.

The threat of US sanctions against foreign individuals and entities continues to exist despite the absence of a US nexus.

Secondary sanctions only target specific sectors of the economy such as the banking and finance sectors.

A country that does not have strong predicate offenses and is lax in prosecuting AML cases could suffer which social/economic consequence?

Increased organized crime and corruption

A bank's transaction surveillance system triggers an alert for a deposit of 250.000 USO into a client's account. According to the bank's KYC information, the client works for a financial advisory firm, and earns approximately 100,000 USD per year. Which actions should be taken? (Select Three.)File the suspicious transaction immediately to the financial intelligence unit.

Request information and documentation from the client on the background of the transaction.

Contact the client advisor to learn if he has any insight on the transaction background.

Review the transaction background in the bank's transaction platform.

Discard the alert as a false positive hit

Request information and documentation from the client on the background of the transaction.

Contact the client advisor to learn if he has any insight on the transaction background.

Review the alert if the deposit is made in cash.

Review the transaction background in the bank's transaction platform.

Which reputations risk consequence could a financial entity face for violating AML laws?

Increased audit costs to monitor behavior

Which are primary purposes of Financial Action Task Force {FATF)-Style Regional Bodies? (Select Two.)

Providing expertise and input in FATF policy-making

Promoting effective implementation of FATF recommendations

Acting as a prudential regulatory body for financial institutions

Providing due diligence for foreign correspondent banks

Providing expertise and input in FATF policy-making

Imposing special measures for non-cooperative jurisdictions

Promoting effective implementation of FATF recommendations

Which is the first valid step in the Mutual Legal Assistance Treaties international cooperation process?

The central authority of the requesting country sends a letter of request to the central authority of the other country.

The investigator may remove the evidence collected without asking permission to do so.

The central authority of the requesting country sends a letter of request to the central authority of the other country.

An investigator from the requesting country visits the country where the information is sought and takes statements from the identified witnesses or suspects.

The central authority that receives the request sends it to a local judicial officer to find out if the information is available.

How does the Asian/Pacific Financial Action Task Force <FATF>-Style Regional Body help its members implement recommendations from the FATF? (Select Two.)

Facilitates the adoption and implementation of internationally accepted AMI measures by member jurisdictions

Encourages cooperative AML efforts in the region

Promotes laws that allow judicial challenges to seizure orders by an administrative body

Endorses regulations that define money laundering based on the model laws issued by the respective member states

Facilitates the adoption and implementation of internationally accepted AMI measures by member jurisdictions

Encourages cooperative AML efforts in the region

Requires members to maintain lists of regional money laundering and terrorists financing issues relevant to their region

A new customer has just been onboarded in a securities firm. After a few weeks, there are unusual trading patterns that are being flagged. Which pattern is most concerning to the compliance officer?

The customer accumulates securities of a low volume counter in small increments on a weekly basis.

The customer engages in large trading in securities that are liquid or highly priced from the trading account.

The customer's repeated trading in securities that are low priced and low volume counters.

The customer receives many incoming wire transfers from related parties to the trading account.

The customer accumulates securities of a low volume counter in small increments on a weekly basis.

A retail bank prepares a yearly AML risk assessment. Which inherent risk factor is likely the most relevant?

The provision of remote check deposit services

The provision of payable through accounts

The provision of brokerage services

What action does the USA PATRIOT Act allow the US government to take regarding financial institutions (FIs) that are based outside of the US?

Subpoena documents from FIs that have no presence in the US.

Sanction a country when an individual Fl does not comply with US law.

Subpoena documents from FIs that have no presence in the US.

Revoke the banking licenses of non-US FIs in countries outside the US.

Allow all US regulators to place a non-US Fl on the Specially Designated Nationals and Blocked Persons List.

The law enforcement agency (LEA) of a foreign jurisdiction contacts a financial institution (Fl) regarding one of the Fl's clients. The LEA advises that the client is currently wanted for prosecution as a result of a series of human trafficking charges. What should the Fl do? (Select Two.)

Review the client's activity, determine if suspicious activity exists, and report accordingly.

Inform local LEA and regulator of the request for awareness.

Review the client's activity, determine if suspicious activity exists, and report accordingly.

Advise the LEA that the government needs to be contacted for extradition.

Comply immediately with the foreign jurisdiction and turn over all client information.

Inform local LEA and regulator of the request for awareness.

Close the clients accounts immediately to avoid any undue risk.

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.)

The responsibility and authority in the structure

The general purpose behind the structure

The responsibility and authority in the structure

The management structure of the trust

The source of funds in the structure

The general purpose behind the structure

The general nature of business of the trust

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

Series of internal audits followed by reporting to FATF

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?

If there is negative media associated with counterparties

If the activity is materially different from related businesses

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

If there is negative media associated with counterparties

If the account is mostly dormant or has little activity

The training department is conducting awareness training for unusual customer identification scenarios. Which two indicators should be included? (Select Two.)

The customer opens the account in the name of a family member who begins making large deposits.

The customer's name and home address cannot be verified

The customer opens the account in the name of a family member who begins making large deposits.

The customer's name and home address cannot be verified

The customer's internet protocol address does not match the identifying information provided during online registration.

The customer requests payment of proceeds to an unrelated third party.

The customer frequently exchanges small bills for large bills.

Which is a key characteristic of the Financial Action Task Force (FATF) Regional Style Bodies for combatting money laundering/terrorist financing?

Emphasizing regional co-operation between member countries

Instructing each member country to place FATF recommendations into law

Implementing regional mutual evaluation procedures

Emphasizing regional co-operation between member countries

Enabling FATF standards to be specific to each region

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

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

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

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

Examining Human Resources processes for conducting criminal background checks on executives

An account officer who maintains an excellent relationship with the finance manager for a correspondent bank customer learns that many records for the correspondent bank have been requested by law enforcement. In the interest of maintaining a good relationship with the customer, the account officer sets up a meeting to discuss the legal request with the customer. The account officer intends to discuss points related to the investigation during this meeting. Which of the following should an anti-money laundering specialist recommend?

The meeting should be cancelled as he has already behaved inappropriately by alerting the customer to the investigation.

Discuss all the points being investigated by law enforcement to ensure the correspondent bank is well prepared when approached.

Let his manager know what conversations have taken place with the customer and docu-ment the account file accordingly.

Limit discussions about the investigation with the customer and be satisfied that he has provided proper notice to the customer.

The meeting should be cancelled as he has already behaved inappropriately by alerting the customer to the investigation.

A non-U.S. bank asks its U.S. correspondent whether there is risk of having funds seized in their correspondent account if a customer is involved in a predicate offense.The correspondent bank's reply should be,

'Yes, also if the customer's account is used in a country other than the U.S. by suspected money launderers.'

'No, only U.S. accounts for U.S. citizens can be seized and forfeited by the competent authority.'

'No, only correspondent accounts of U.S. banks can be seized and forfeited by govern-ment agencies.'

'Yes, if it is suspected that money laundering has occurred solely in the U.S.'

'Yes, also if the customer's account is used in a country other than the U.S. by suspected money launderers.'

An anti-money laundering consultant audits a bank's current anti-money laundering policies, procedures and controls. The bank serves high-income, high net-worth clients who include non-residents and offshore businesses. During a review of the custom list, the anti-money laundering consultant determines that he and the bank have mutual clients. The bank's written anti-money laundering program includes a process for the bank to establish the identity of the person with whom they conduct business, but does not address monitoring of customer account activity.The consultant should recommend the bank:

Revise the procedures to better assess ongoing customer activity.

Continue to follow the current written anti-money laundering program.

Focus on high-risk customer acceptance procedures.

Reduce the risk rating on the mutual customers.

Revise the procedures to better assess ongoing customer activity.

Normal account-opening procedures reveal a customer who contacted a financial institution to open a bank account is the brother of a prominent member of a foreign judiciary. Which of the following actions should the anti-money laundering specialist recommend immediately?

Perform enhanced due diligence.

Monitor the customer's account.

Perform enhanced due diligence.

File a suspicious transaction report with the competent authority.

Contact the institution's legal advisor.

Which of the following should an anti-money laundering specialist consider the most serious deficiency when detected during a regulatory audit of the anti-money laundering program?

The company has not implemented an anti-money laundering training program.

The compliance officer fails to have on-going meetings with upper management to keep them apprised of current money laundering trends.

The company's anti-money laundering manual has not been updated to reflect a recent internal control enhancement.

The company has failed to download the most recent regulation from the Financial Intelligence Unit web site.

The company has not implemented an anti-money laundering training program.

Which of the following best describes the Basel Committee on Banking Supervision's principles on customer due diligence?

A recommendation to members and banks.

Multilateral agreement between all members.

A recommendation to members and banks.

Generally accepted terms issued by big international banks.

A country's initiative to increase the reputation of its financial market.

ACAMS CAMS Practice Test 13 - Free Online Exam Prep & Questions

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