CAMS Exam Questions Get Updated [2022] with Correct Answers
Practice CAMS Questions With Certification guide Q&A from Training Expert CertkingdomPDF
The benefit in Obtaining the CAMS Exam Certification
- Proving their AML experience to examiners and regulators
- Meeting mandated AML training needs through preparation and study
- Increasing their skilled worth through a higher understanding of financial crime detection and hindrance techniques
- Protecting their company from money laundering threats and minimize money crime risks
- ACAMS conducted a survey recently and the findings were pretty interesting on average, professionals who had their ACAMS made $25,000 more than their colleagues who did not have the CAMS certification!
How to book the CAMS Exam
These are following steps for registering the CAMS exam.
Step 1: Fill your contact and membership information form Step 2: Select your CAMS exam package and certification language Step 3: Select any payment method and write the certification name Step 4: Mail or Fax exam application with attached necessary documents (diploma, copies etc) that fulfill the 40 credit prerequisite to this address:
ACAMS Attn. Certification Department Brickell City Tower 80 Southwest 8th Street, Suite 2350 Fax: +1.305.373.7788 or +1.305.373.5229
NEW QUESTION 259
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.
- A. 1, 2, and 4 only
- B. 2, 3, and 4 only
- C. 1, 3, and 4 only
- D. 1, 2, and 3 only
Answer: D
NEW QUESTION 260
A large international bank has detected potentially suspicious activity in one of its customer accounts. Following an investigation, the bank has determined the activity to be typical of suspected money laundering.
To which entity should this activity be reported on a suspicious transaction report according to Financial Action Task Force?
- A. Financial Intelligence Unit
- B. National Security Council
- C. Local law enforcement agency
- D. Federal law enforcement agency
Answer: A
NEW QUESTION 261
A financial institution in a jurisdiction with currency reporting thresholds is undergoing a branch office compliance review. A large number of currency transactions in amounts exceeding a reporting threshold were discovered without a currency transaction report (CTR) being filed. The transactions were handled by the same teller (cashier). This teller (cashier) was recently hired and had not received anti-money laundering training yet. The branch manager received daily exception reports of all large currency transactions as well as a report of all CTR filings. Which of the following should the compliance officer recommend as the initial action?
- A. The branch manager should be formally reprimanded for failing to ensure proper instruction was given.
- B. An audit should be conducted for cash transactions since the last compliance review.
- C. Terminate the teller's (cashier's) employment prior to the expiration of the probation period.
- D. The teller's (cashier's) employment should be suspended with pay pending appropriate training.
Answer: A
NEW QUESTION 262
What are two sources for maintaining up-to-date sanctions information? (Choose two.)
- A. U.S. Department of the Treasury - Section 311 - Special Measures
- B. U.S. Federal Bureau of Investigation's National Security Letters
- C. U.S. Department of the Treasury Office of Foreign Assets Control
- D. Financial Action Task Force's list of High Risk and Non-Cooperative Jurisdictions
Answer: C,D
Explanation:
Explanation/Reference: https://www.treasury.gov/resource-center/faqs/Sanctions/Pages/faq_lists.aspx#search
NEW QUESTION 263
Law enforcement submitted a request to a bank for information regarding one of its customers.
How should the bank respond according to Financial Action Task Force Guidance?
- A. Provide all information requested to support the investigation
- B. Contact the customer informing the person of the investigation to ensure the bank provides correct information
- C. Ensure that the request will not violate any local privacy regulations or legislation
- D. Ensure the information is necessary to the investigation before responding to the request
Answer: D
Explanation:
Explanation/Reference:
NEW QUESTION 264
An anti-money laundering specialist has been hired by an independently-owned community bank to implement an anti-money laundering compliance program. This bank has recently seen a dramatic increase in the number of international electronic fund transfers from its commercial clients. The first thing the anti-money laundering specialist should do is
- A. conduct a risk assessment of the bank's international electronic fund transfer activity.
- B. develop a new account questionnaire to quantify the level of risk for new international accounts.
- C. file a suspicious transaction report on international customers receiving large electronic fund transfers.
- D. close all accounts which have had a dramatic increase in international electronic fund transfer activity.
Answer: B
NEW QUESTION 265
How should a financial institution deter money laundering through new accounts? Choose 3 answers
- A. Seek to determine the source of deposited funds
- B. Query owner's names against FATF database
- C. Document the identity of the party opening the account
- D. Determine the beneficial owner(s) of the account
Answer: A,C,D
NEW QUESTION 266
Which factor should a bank consider before sharing information about a customer with its broker-dealer affiliate in the case of an investigation?
- A. Whether both institutions have an account or are in the process of opening an account for the customer
- B. Whether privacy and data protection rules permit the bank to share the information with the affiliate
- C. Whether there is a mutual legal assistance treaty in place between the two institutions
- D. Whether the broker-dealer affiliate can rely on the due diligence done by the bank
Answer: B
NEW QUESTION 267
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. 1 and 3 only
- B. 2 and 3 only
- C. 1, 2, and 3
- D. 1 and 2 only
Answer: B
NEW QUESTION 268
What type of records do the recordkeeping requirements of section 319 of the Patriot Act require U.S. banks to collect and maintain records of in the U.S. for each non-U.S. bank with which it maintains a correspondent relationship?
- A. Beneficial ownership and any Politically Exposed Person (PEPs) in the management chain
- B. Name of attorney and name of all shell bank clients
- C. Copy of AML policies and annual reports
- D. Ownership and agent for service of legal process
Answer: D
NEW QUESTION 269
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?
- A. Advise that the dealer's accounts should be closed.
- B. Recommend the immediate termination of the employee.
- C. Consult with senior management and the legal advisor.
- D. Inform the institution's regulatory agency of the situation.
Answer: C
NEW QUESTION 270
Transfers of money over the last 6 months to a corporation in a jurisdiction with strict secrecy laws triggered an alert. Which of the following should cause the most suspicion of money laundering?
- A. No financial statements have been filed for 3 years.
- B. The company has bearer shares.
- C. The jurisdiction is a known tax haven.
- D. The corporation director is a European citizen.
Answer: C
NEW QUESTION 271
Which action should countries take related to the financing of terrorist acts in accordance with the Financial Action Task Force 40 Recommendations?
- A. Oppose
- B. Prosecute
- C. Criminalize
- D. Sanction
Answer: C
Explanation:
Explanation/Reference: https://www.fatf-gafi.org/publications/methodsandtrends/documents/fatf-action-against-terrorist- financing-feb-2019.html
NEW QUESTION 272
What describes the Black Market Peso Exchange money laundering method?
- A. A method primarily used by narcotics traffickers to transfer value back to the source country
- B. An undercover technique to identify politically exposed persons who may assist money launderers
- C. A method used to smuggle dollars or pesos across that border from the U.S. to Mexico, and vice versa
- D. The best known money laundering method used by known terrorists
Answer: A
NEW QUESTION 273
A periodic review of the account of a small household goods business reveals multiple shipments of goods to a country classified by the bank as high risk. They were transshipped through another country prior to the final destination. In the past three months, volumes over 25,000 units. The business has been a customer of a bank for 10 years.
Records show previous shipments to destinations primarily in Europe involving quantities of 5,000 units or less. Recent shipments are listed as being received by the same company as the earlier shipments and payments are being received from the same originator, but the unit price of the goods is three times higher than before.
Which two red flags indicate potential trade-based money laundering? (Choose two.)
- A. The size of the shipments appear inconsistent with the exporter's previous business activities.
- B. The goods are transshipped through one or more jurisdictions for no apparent economic reason.
- C. The shipments of the same goods are now going to a different location.
- D. The goods are shipped to a jurisdiction that the bank classifies as "high risk" for money laundering activities.
Answer: A,B
NEW QUESTION 274
How does a regulatory body typically obtain international assistance in a money Laundering inquiry?
- A. By communicating with the Head of Compliance for the financial institution
- B. By submitting a request for overseas assistance to the corresponding supervisory body
- C. By contacting the FATF, Organization for Economic Co-operation and Development, or other international organizations and seeking their intervention
- D. By filing a request under Egmont guidelines
Answer: B
NEW QUESTION 275
You have Azure IoT Edge devices that collect measurements every 30 seconds.
You plan to send the measurements to an Azure IoT hub.
You need to ensure that every event is processed as quickly as possible.
What should you use?
- A. Apache Kafka
- B. Azure Machine Learning on the IoT Edge devices
- C. Azure Stream Analytics windowing functions
- D. Azure Stream Analytics record functions
Answer: B
Explanation:
Use Azure Notebooks to develop a machine learning module and deploy it to a Linux device running Azure IoT Edge.
You can use IoT Edge modules to deploy code that implements your business logic directly to your IoT Edge devices.
References:
https://docs.microsoft.com/en-us/azure/iot-edge/tutorial-deploy-machine-learning
NEW QUESTION 276
A local law enforcement officer, who is conducting a criminal investigation, requests information about a customer.
Which two actions should the bank take? (Choose two.)
- A. Monitor the account for suspicious activity
- B. Close the account immediately
- C. File a suspicious transaction report
- D. Review the money laundering risk posed by the account
Answer: A,D
NEW QUESTION 277
Which two steps should a financial institution take when it receives a law enforcement request to keep an account open that may be associated with suspicious or criminal activity? (Choose two.)
- A. File a suspicious transaction report on the account owner(s)
- B. Maintain account records for at least five years after the request expires
- C. Stop filing suspicious transaction reports because law enforcement will be monitoring the account
- D. Ask for a written request from the law enforcement agency that defines the duration
Answer: A,D
NEW QUESTION 278
A junior account manager within an international private bank in Country A was asked by one of his valued customers, who has held an account for several years in the institution, about depositing a large sum of cash into her account. The junior account manager informed his customer that his bank does not accept cash. The junior account manager later reviewed a customer activity report and noticed a number of smaller dollar wires from banks in neighboring Country B, which has lax currency controls, that totaled about as much as the customer intended to deposit.
What should the junior account manager do?
- A. Close the account
- B. Offer the customer a more secure method of depositing in the hope of learning something more during the conversation
- C. File a suspicious transaction report with the Financial Intelligence Unit
- D. Notify the anti-money laundering specialist of his bank, but do not call the customer
Answer: D
NEW QUESTION 279
A junior account manager within an international private bank in Country A was asked by one of his valued customers, who has held an account for several years in the institution, about depositing a large sum of cash into her account. The junior account manager informed his customer that his bank does not accept cash. The junior account manager later reviewed a customer activity report and noticed a number of smaller dollar wires from banks in neighboring Country B, which has lax currency controls, that totaled about as much as the customer intended to deposit.
What should the junior account manager do?
- A. Close the account
- B. File a suspicious transaction report with the Financial Intelligence Unit
- C. Notify the anti-money laundering specialist of his bank, but do not call the customer
- D. Offer the customer a more secure method of depositing in the hope of learning something moreduring the conversation
Answer: C
NEW QUESTION 280
Which three elements should be considered in an institution's enhanced due diligence process to assure itself that it has secured sufficient understanding of its higher risk respondent bank customers according to the Wolfsberg Principles on Correspondent Banking?
- A. A risk-based determination as to whether or not the respondent is a shell bank
- B. The quality of the respondent's AML and client identification controls
- C. Whether a Politically Exposed Person (PEP) has an interest or management role in therespondent
- D. The sources of wealth for all significant ownership interests
Answer: A,B,D
NEW QUESTION 281
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How to study the CAMS Exam
CertkingdomPDF expert team recommend you to prepare some notes on these topics along with it don’t forget to practice Certified Anti-Money Laundering Specialist CAMS Dumps which been written by our expert team, Both these will help you a lot to clear this exam with good marks.
- Provided a scenario, Determine the key aspects of delivering targeted training for different audiences and job functions, components of an AML training program, roles senior management, roles senior management, how customer onboarding should be implemented for the institution, area to increase the efficiency and accuracy of automated AML tools
- Determine methods to finance terrorism and to launder money used in banks, insurance companies, broker-dealers, investment advisors, capital markets, gaming, dealers of precious metal/high-value items, real estate, bureau de change, the business of money services, lawyers, notaries, accountants, and auditors.
- Determine the risks to individuals or institutions for violation of AML laws.
- Determine the key aspects of the FATF, BASEL Committee Customer Due Diligence Principles, EU Directives on money and Wolfsberg Groups AML Principles as they relate to private/correspondent banking, USA PATRIOT Act and OFAC sanctions that have extraterritorial reach
- Determine the economic and social consequences of money laundering
- Provided a Scenario about trust, company service providers, emerging risks related to technology, banks, insurance companies, broker-dealers, investment advisors, capital markets, gaming, dealers of precious metal dealers, dealers of real estate, bureau de change, money services business, lawyers, notaries, accountants, auditors, financial transactions that offer anonymity, lack of transparency of ownership, moving money, involving commercial transactions and identify the red flags that indicate money laundering or financing terrorism.
- Provided a scenario, Determine when and how to implement necessary program changes, the process to access the money laundering and internal factors that should be escalated to management
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