ACAMS CAMS Practice Test - Questions Answers, Page 53

An individual opened an account with a minimal cash deposit at a financial institution. He presented a foreign passport and stated he would be working locally for a few months. He also requested information about making electronic fund transfers. The institution was subsequently unable to verify the employment or residence information provided by the individual. Soon after this, a large transfer was sent to the customer's account. Which of the following is the course of action recommended by the Basel Committee on Banking Supervision's Customer Due Diligence for Banks?

The most effective tool used to detect structured transactions is

An anti-money laundering specialist at a large institution is responsible for informing senior management about the status of the anti-money laundering program across the organization. The global institution handles retail banking, commercial banking, global markets, private banking and has an affiliated securities dealer. The specialist and the team provide corporate strategic direction to these areas on anti-money laundering related subjects. The following information is reported to executive management on a regular basis:

* Total number of suspicious transactions identified and reported

* Suspicious transaction trends

* Training that has occurred for the various units

* Status report on the anti-money laundering regulatory environment

* Summary of exception reports

Which of the following additional elements is the most useful?

A large cash deposit most likely reflects money laundering when it is

1. from a customer who has never conducted a transaction in cash before.

2. transacted in segments smaller than the reporting thresholds at various times during the day.

3. followed by an immediate wire transfer to an offshore secrecy haven.

4. by a customer who operates a cash-based business.

Historically, which of the following vehicles is most often used to hide beneficial ownership?

A compliance officer is developing an anti-money laundering program for a financial institution located in a Financial Action Task Force member country. The institution conducts business with customers located in countries/jurisdictions that are not members of Financia Action Task Force. Which of the following issues should be addressed in the program?

1. The requirement to identify the beneficial owners of accounts.

2. The requirement for customer identification for the opening of new accounts.

3. The financial institution's obligation to report suspicious transactions.

4. The obligation to freeze funds involved in suspicious transactions.

According to the Financial Action Task Force 40 Recommendations, to fulfill identification requirements concerning legal entities, financial institutions should take measures to verify

According to Basel Committee on Banking Supervision guidelines, which of the following statements best describes the relationship between the internal audit function and compliance?

A financial institution recently purchased anti-money laundering software. The software routinely generates more alerts than the anti-money laundering staff can properly analyze as a result of limited staffing. These alerts are generated by default software rules. Which of the following should the individual responsible for setting the anti-money laundering software parameters recommend?