ACAMS CAMS Practice Test - Questions Answers, Page 16

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 businessman requests a European private bank to open a numbered or alternate name account. According to the Basel Committee on Banking Supervision principles, which of the following is the most important question the banker should ask?

Which of the following competent authorities should directly receive suspicious or unusual transaction reports?

An offshore company is owned by four equal partners that reside in separate jurisdictions. One partner presents an authenticated power of attorney apparently executed by the remaining three partners in his favor and requests that a bank account be opened on behalf of all partners. He needs this done quickly because there is a large deposit pending. The account-opening officer contacts the bank's anti-money laundering officer for advice. Which of the following should the anti-money laundering officer advise as an initial step?

An anti-money laundering specialist at a financial institution has received a legal request to provide all transaction records for a specific individual since 2004. Which of the following item s should be delivered?

1. Monthly statements and transaction activities for that individual since 2004.

2. All wire transfers for that individual since 2004.

3.Signature cards from accounts opened by that individual since 2004.

4. All security trading activities for that individual since 2004.

A European Union (EU) bank has a correspondent banking relationship with a U.S. bank. Under USA PATRIOT Act Section 311, the U.S. government has enacted special measures against a designated entity that has a payable-through account with the EU bank. Which of the following actions might the U.S. bank be required to take regarding the EU bank's services for the designated entity?

Which of the following is the best action to take regarding a particular account once suspicious activity is reported by the institution?

A money remittance business will most likely attract money launderers because it

1.deals primarily in cash transactions.

2.engages in international transactions.

3. conducts transactions for walk-in customers.

4.does not have to comply with transaction reporting.

A suspicious transaction report filed on a car dealer structuring deposits initiates a criminal investigation. The dealer changes branches and begins placing transactions with a frontline employee to whom the dealer has given numerous gifts.

This employee handles all of the dealer's structured deposits and does not report the suspicious activity internally.

The competent authority has advised the anti-money laundering specialist to avoid tipping off the employee until the investigation is finalized.

What action should the specialist take next?