Which primary international authoritative body designates sanctions?

Organization of Economic Co-operation and Development (OECD)

Financial Action Task Force (FATF)

International Monetary Fund (IMF)

A prospective AML officer comes highly recommended by a banks up-stream correspondent institution of similar size and make-up, located in a different city in the same country. The bank is interested in hiring the individual. What should be the next step taken by the Board of Directors?

Confer with its regulatory agency to determine whether it is appropriate to hire the person

Hire the individual, relying on the recommendation of its correspondent

Hire the individual on a probationary basis so that the institution can determine if the individual is sufficiently experienced and capable

A commission rogatory would be used in which gateway to obtain information from another country?

An FIU request under the Egmont principles

A supervisory channel request with the Basel Committee

What poses the greatest money laundering risk for a financial institution offering on-line services to customers?

There is a greater difficulty in matching the customer with the provided identification documentation

There is a lack of human review of the customer's transactions

Institutions offering on-line services have no possibility to properly verify the identity of their customers

Customers have direct access to their accounts without being detected

A profitable commercial customer who operates an import-export business has multiple accounts with the same institution at branches m different locations. The customer receives funds from a jurisdiction perceived as highly corrupt according to Transparency International ratings. The customer makes frequent transfers among the accounts and prefers to manage the accounts separately. What should the institution do to mitigate the risk associated with these accounts?

Develop a system to monitor all the activity

File a suspicious transaction report

Diminish the importance of the subjective Transparency International rating

Conduct a trade-price manipulation analysis

Develop a system to monitor all the activity

A law enforcement agency is reviewing a suspicious transaction report (STR) filed by a financial institution for suspicious activity on a client's account.Subsequently, the agency requests further information.Which supporting documentation might the law enforcement agency request from the institution to facilitate its investigation?

Account opening documents and account statements

Previously filed STRs on the same customer

Account opening documents and account statements

Copies of promotional materials sent to the customer

A copy of the institution's STR policy and procedures

Which element is generally required of all anti-money laundering programs?

A qualified compliance officer to manage the program

A computer-based suspicious activity monitoring system

A qualified compliance officer to manage the program

Annual in-person AML training for all employees

An enhanced due diligence program for all new customers

In the FATF 40 recommendations, the focus of AML efforts has been expanded beyond Financial Institutions. Which three businesses and/or professions are covered? Choose 3 answers

casinos, when customers engage in financial transactions equal to or above a designated Threshold

Real estate agents when they are involved in transactions for clients concerning buying and selling properties

Trust and company service providers

casinos, when customers engage in financial transactions equal to or above a designated Threshold

Real estate agents when they are involved in transactions for clients concerning buying and selling properties

Dealers in art, when they engage in any cash transaction with a customer at or above a designated threshold

Trust and company service providers

An anti-money laundering specialist at a large institution is responsible for information senior management about the status of the anti-money laundering program across the organization.Which report is the most useful?

Results of related audits and examinations

The total credit exposure for non-cooperative countries and territories

Results of related audits and examinations

Details on inquires received from law enforcement

Notification of management changes in the different major divisions

Which three areas do FATF's 40 recommendations cover? Choose 3 answers

Financial systems and their regulation

Prescriptive sentences for predicate offenses

Financial systems and their regulation

A remittance company received a money order from a senior political figure m the Philippines to transfer a large sum of money to a charity group in the Philippines. A review of the charity group revealed a director having dose ties with a known terrorist group primarily financed through kidnapping and extortion.What is a key risk indicator associated with terrorism financing?

There is a link between the charity group and a known terrorist group

The sender is a Political Exposed Person (PEP) and should be subject to enhanced due diligence

A large sum sent by money order to a charity

There is no risk relating of terrorism financing when the charity group is operating legitimately in that country

There is a link between the charity group and a known terrorist group

Why is the Mutual Legal Assistance Treaty (MLAT) a gateway for international cooperation?

They provide a legal basis for transmitting evidence that can be used for prosecution and judicial proceedings

They receive reports of suspicious transactions from financial institutions to disseminate to local Law enforcement and foreign FIUs

They obtain intelligence that might lead to evidence

They issue the Prmc4es of Information Exchange Between Financial intelligence Units (FIUs)

Which situation is the highest risk for money laundering and terrorist financing activity?

A customer purchases casino chips, using small denomination bank notes, but does not engage in game play before redeeming the chips for a casino check

A customer purchases casino chips and engages in significant game play before requesting a casino check for the remainder

A customer purchases casino chips using a credit card and engages in minimal game play before redeeming the chips for a casino check

A customer purchases casino chips using credit from an account at an affiliated casino and engages in significant game play before redeeming the chips for a

Which key aspect of the Office of Foreign Assets Control's extraterritorial reach specifically relates to prohibited transactions?

Prohibit or reject unlicensed trade and financial transactions with specified countries, entities, and individuals

Prohibit or reject licensed trade and financial transactions with specified countries, entities and U.S. individuals

Prohibit or reject licensed trade and financial transactions with specified countries, entities and non-U.S. individuals

Prohibit or reject unlicensed foreign trade and financial transactions with specified countries, entities, and individuals.

In performing a risk analysis, which factor(s) should a financial institution review?

Its customer base, location, products and services

Recent regulatory actions against financial institutions of comparable size

Its customer base, location, products and services

The adequacy and completeness of its STR filings

According to the Second European Union Money Laundering Directive, what may knowledge of criminal conduct be inferred from?

Objective, factual circumstances

Subjective, factual circumstances

Objective, factual circumstances

Objective, non-factual circumstances

Subjective, non-factual circumstances

The Wolfsberg Principles for Private Banking list circumstances that would require additional due diligence, including activities that involve which three of these choices?

High Risk Countries, including those identified by credible sources as having inadequate Anti-Money Laundering standards

High Risk activities, involving clients and beneficial owners whose source of wealth originates from activities known to be vulnerable to money laundering

High Risk Countries, including those identified by credible sources as having inadequate Anti-Money Laundering standards

High Risk activities, involving clients and beneficial owners whose source of wealth originates from activities known to be vulnerable to money laundering

Public officials, including those individuals who have or had positions of public trust

In addition to monitoring for suspicious activity, what are electronic monitoring systems also valuable for?

Meeting mandatory regulatory requirements for system implementation

Identifying how customers are using products

Highlighting the skills of the system analysts

Proving to the Board of Directors that the FIU is doing its job

Meeting mandatory regulatory requirements for system implementation

A compliance officer is looking to update an institutions private bank procedures. What should be included as recommended by the Wolfsberg AML Principles onPrivate Banking?

Approval of Politically Exposed Persons (PEPs) by at least one person other than the relationship manager

Dedicated automated AML monitoring of client activity

Review of client files annually if there are unusual transactions

The institution's senior management has primary responsibility for the relationship

What should senior management do in order to promote a culture of anti-money laundering compliance?

They should include compliance with AML procedures as condition of employment

They should attend all training sessions with front-line employment

They should have close ties with the independent auditors of the AML program

They should base employee compensation on the amount of suspicious activity they detect

What kind of person should perform the independent testing of an institution's anti-money laundering program?

A person who reports directly to the Board of Directors or a Board Committee

A certified specialist in the anti-money laundering field

A former anti-money laundering officer from a similar institution

A person who reports directly to the Board of Directors or a Board Committee

A retired government regulator or federal law enforcement officer

An organization uses an automated surveillance system that generates a very large volume of anti-money laundering alerts. The monthly volume of alerts has increased over the last year causing the compliance staff to fall significantly behind reviewing the alerts. As a result, the system settings are under review to determine if they are appropriate.Which action should be included in the evaluation of system settings?

Review parameter settings based on the latest risk assessment

Compare settings to organizations within its peer group

Flag filters with no history of generating an alert for removal

Review parameter settings based on the latest risk assessment

Calibrate parameters based on staffing capabilities to clear alerts

Which is a key reason why a financial institution (FI) conducts an enterprise-wide AML risk assessment?

The need to assess money laundering and terrorist financing risks and ensure there are adequate controls to mitigate those risks.

The identification of specific risk categories (i.e., export, inactivity, layman, and false locations) unique to the bank.

The need to understand its overall budget needs for each department and for internal audit.

The board of directors and senior management are required to have an AML risk assessment for the bank.

Which activity would require an update to the first line training program?

The expansion to customer segments that will utilize newly established products.

The implementation of a new system that provides information for monitoring customer accounts.

The expansion to customer segments that will utilize newly established products.

The maintenance of regulatory requirements for onboarding documentation collections of a customer base.

The onboarding of a new customer type which was previously reviewed and risk rated.

A foreign bank maintains a correspondent account in the US. According to an investigation carried out by US authorities, the specific correspondent account seems to have facilitated a transaction involving tainted funds. Which allows the US authorities to seize the funds of the foreign bank held with the US bank?

Regulations of the OFAC, US Department of Treasury

Financial Intelligence Units (FIUs) are responsible for:

the timely dissemination of cases to law enforcement agencies.

responding to requests from law enforcement agencies for information contained in regulatory reports.

sharing evidence with other FIUs.

receiving confirmed reports about committed crimes from accountable and reporting institutions.

One key aspect of promoting an enterprise-wide compliance culture within a financial institution (FI) is that the:

relevant information should be shared throughout the organization.

first line of defense should establish its own policies independently.

revenue generating business sectors should have precedence over compliance.

relevant information should be shared throughout the organization.

cost of compliance should increase proportionately to revenues.

A bank teller receives a written request from a police officer to review a previous customer's account on a pre-populated form with the officer's official letter head. The officer suspects the previous customer is engaging in smurfing. Which action should the bank teller perform?

Escalate the request to the compliance officer.

Provide the police officer information after AML compliance approval.

Reject the request and escalate to the compliance officer.

Provide the police officer information after management approval.

Escalate the request to the compliance officer.

What action should a bank CEO's assistant take when the bank CEO expenses large sums of money to a charitable organization run by the bank CEO's direct family member?

Submit the concern anonymously to the bank's internal Compliance Hotline.

Report the actions to the Executive Board of the bank.

Meet with the bank CEO to learn why the donations are being made.

Investigate the charitable organization's relationship with the bank CEO.

Submit the concern anonymously to the bank's internal Compliance Hotline.

What is an example of a legal risk a financial institution (FI) could face if it is sanctioned for failure to report suspected fraud activity?

The bank could be forced to reimburse the victims of the fraudster for the losses suffered.

Foreign correspondents could terminate their relationships with the sanctioned bank.

Clients of the bank might draw down the reserves of the bank and lead to liquidity issues.

The bank could be forced to reimburse the victims of the fraudster for the losses suffered.

The bank could see higher default rates on loans granted to companies owned by the fraudster.

How should law enforcement obtain documentation from an institution when suspicious activity was identified? (Choose two.)

Request copies of the relevant documents from the accountable institution.

Acquire a search warrant to obtain the documents.

Request copies of the relevant documents from the accountable institution.

Pay an employee of the accountable institution to make copies of the documents.

Request a Financial Intelligence Unit (FIU) share copies of suspicious transaction reports.

Request the documents from the FIU.

Acquire a search warrant to obtain the documents.

A compliance officer at a financial institution (FI) received an investigation request for a customer from a local law enforcement agency. Which action should be taken by the FI?

Consider retaining qualified, experienced legal counsel.

Obtain approval from the Financial Intelligence Unit (FIU) before submitting the customer's information.

Omit some responses to meet the regulatory deadline.

Assign employees responsible for the customer to the investigation team.

Consider retaining qualified, experienced legal counsel.

Which should authorities do to safeguard AML information exchanged with other countries?

Protect exchanged information as they would protect similar information received from domestic sources.

Require the use of non-disclosure agreements with anyone accessing the exchanged information.

Protect exchanged information as they would protect similar information received from domestic sources.

Require the use of non-disclosure agreements with anyone accessing the exchanged information.

Use the court system to ensure confidentiality of exchanged information through court orders.

Destroy the information once the investigation is complete.

Which is a red flag for funds transfers?

Funds transfers are repeatedly sent to the same beneficiary out of line with the business purpose.

Funds transfers are received in numerous small quantities from entities that are in related industries.

Funds transfers are repeatedly sent to the same beneficiary out of line with the business purpose.

Funds transfers are repetitive and within expected patterns.

Funds transfers are to a higher-risk geographic location with a known supplier within the same industry as the originator.

What reputational risk consequence could a financial entity face for violating AML laws?

Increased audit costs to monitor behavior

Which should be provided to the board of directors or designated specialized committee when reporting SARs/STRs?

Statistical data regarding SARs/STRs filed during the reported period.

All possible details of SARs/STRs filed during the reported period.

Statistical data regarding SARs/STRs filed during the reported period.

Names of all customers subject to SARs/STRs filed during the reported period.

Copies of all SARs/STRs filed during the reported period.

ACAMS CAMS Practice Test 9 - Free Online Exam Questions 321-360

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 9

Question

ACAMS CAMS Practice Tests

Practice Tests