Which scenario indicates potential money laundering activity by a lawyer?

A lawyer's trust account regularly receives wire transfers from unknown remitters from a higher-risk country and immediately transfers the same amount of funds received to a known beneficiary's account in a low-risk country.

A lawyer located in a higher-risk country deposits their firm's bank draft issued from their trust account to another lawyer's trust account located in a low-risk country for legal services rendered.

A lawyer's trust account receives a large-value wire transfer from a regulated insurance company and immediately transfers the same amount of funds received to the beneficiary's bank account located in a low-risk country.

A lawyer's trust account receives a large wire transfer deposit from a client that wanted to purchase a piece of property and then transfers the same amount to the property seller's lawyer's trust account.

Which of the below statements are supported by the Financial Action Task Force (FATF) 40 Recommendations adopted in 2012? (Select Two.)

Nations should work towards implementing targeted financial sanctions in alignment with the UN Security Council.

Nations should establish frameworks that take a risk-based approach to prevent and mitigate money laundering and terrorist financing.

Nations should take measures to ensure there is transparency to the beneficial ownership of legal persons.

Regulators should direct Financial Institutions to establish appropriate frameworks to avoid banking higher-risk customers.

Nations should work towards implementing targeted financial sanctions in alignment with the UN Security Council.

Nations should establish frameworks that take a risk-based approach to prevent and mitigate money laundering and terrorist financing.

Governments must work toward developing identical administrative and operational frameworks for investigating and prosecuting crime.

Nations should take measures to ensure there is transparency to the beneficial ownership of legal persons.

Which red flag is most relevant to money laundering through capital markets?

A low-priced security sees a sudden spike in investor demand with a rising price.

A security sees a transactional pattern of a steady decrease in both trading volume and prices.

A firm sees an unexpected increase in demand for electronically traded funds.

A trading customer maintains a portfolio of securities concentrated in one specific emerging market.

Privacy and data protection restrictions placed upon financial institutions (FIs) in the EU require that FIs must: (Select Two.)

Apply data minimization to avoid overreach in data collection.

Follow strict guidelines when using machine learning and artificial intelligence.

Engage third parties to supplement any missing customer identification information.

Apply data minimization to avoid overreach in data collection.

Inform a customer of any information the FI has obtained as a result of an investigation into unusual activity.

Follow strict guidelines when using machine learning and artificial intelligence.

ACAMS CAMS Practice Test 20 - Free Online Exam Prep & Questions

Spam

Selling illegal goods, money scams etc.

Hate Speech

Serious attack on a group.

Harassment and bullying

Harassing an individual (including doxing)

Harmful activities

Threatening or glorifying violence or serious harm, including self-harm

Adult content (Consensual)

Nudity/Sexual content

Sexual exploitation and abuse (child safety)

Sexually explicit or suggestive imagery or writing involving minors

Sexual exploitation and abuse (adults and animals)

Sexually explicit or suggestive imagery or writing involving non-consenting adults or non-humans

Plagiarism

Reusing content without attribution (link and blockquotes)

Poorly written

Not in English or has very bad formatting, grammar, and spelling

Inappropriate credential

Author's credential is offensive, spam, or impersonation

Other

Ex. Illegal content, incomplete question...

ACAMS CAMS Practice Test 20

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