[Dec-2021] CAMS Pre-Exam Practice Tests | Exam Questions and Answers for CAMS Certification Study Guide
Certified Anti-Money Laundering Specialists Certification Sample Questions
NEW QUESTION 94
Which scenario is closest to the definition of money laundering the United Nations Convention against Transnational Organized Crime and Other Protocols provided?
- A. Discussing your suspicions with a client, thus giving the client the opportunity to switch service providers and to cover his tracks in future transactions
- B. Knowingly financing a resort development with the proceeds of arms trafficking
- C. Filing a suspicious transaction report when you know or suspect money laundering is taking place
- D. Assisting a client in a property conveyance by effecting the transfer of ownership from the seller to the purchaser when you don't know the purchaser
Answer: B
NEW QUESTION 95
What is a method of placement that can be used by a money launderer in a deposit taking institution?
- A. Depositing cashier's checks and money orders into the money launderer's account
- B. Depositing cash into the money launderer's account
- C. Sending a large number of funds transfers between accounts
- D. Withdrawing large amounts of cash from the money launderer's account
Answer: A
NEW QUESTION 96
A client who owns a swimming pool company requests to open 19 accounts at a bank, each with a debit card for its swimming pool technicians. When asked about the purpose of each account, the client explains that each technician needs a separate checking account to purchase pool chemicals.
Which available source could be used in the bank's internal investigation on this client's activities?
- A. Local law enforcement investigation report
- B. Interview swimming pool technicians and chemical suppliers
- C. Client's credit bureau report
- D. Internet search showing how such business are typically operated
Answer: D
NEW QUESTION 97
What are some red flags financial institutions should be aware of when trying to verify the identity of a customer? Choose 3 answers
- A. Customer having unusual documents from a foreign country
- B. Customer not having a connected phone
- C. Customer having no permanent address
- D. Customer being new to the community
Answer: A,C,D
NEW QUESTION 98
A compliance officer receives a report from the institution's monitoring system. One account was identified in multiple alerts for the amount of cash deposited and international wires sent.
Which two sources of information held within the institution will enable the compliance officer to determine whether the activity should be reported? (Choose two.)
- A. Transaction records for the period during which the unusual activity occurred
- B. The signature card for the account
- C. The customer due diligence information on file
- D. The monitoring system parameters for identifying unusual activity
Answer: A,C
Explanation:
Explanation/Reference:
NEW QUESTION 99
According to Basel Committee on Banking Supervision's Customer Due Diligence for Banks, which of the following should provide an evaluation of a bank's policies and procedures independent from its management?
- A. A peer institution
- B. The compliance function
- C. The credit risk department
- D. The Board
Answer: B
NEW QUESTION 100
What are two requirements of United States financial institutions when conducting business with an international institution as a result of the USA PATRIOT Act? (Choose two.)
- A. Complying with Special Measures issued under the USA PATRIOT Act
- B. Performing enhanced due diligence on shell banks
- C. Visiting the head office of the international financial institution
- D. Performing due diligence on correspondent accounts
Answer: A,B
NEW QUESTION 101
A director of a financial institution was convicted of laundering money as part of a Ponzi scheme and terminated. As a result of an internal investigation evidence proved that an employee assisted in the illegal activity.
Which action should the institution take?
- A. Require all employees to complete additional anti-money laundering training
- B. Discipline the employee and inform local authorities
- C. Discipline the employee with no further action
- D. Since the employee was not charged, no further action is required
Answer: B
NEW QUESTION 102
Which of the following best describes the Black Market Peso Exchange money laundering method?
- A. The best known money laundering method used by known terrorists
- B. A method primarily used by narcotics traffickers to transfer value back to the source country
- C. An undercover technique to identify politically exposed persons who may assist money launderers
- D. A method used to smuggle dollars or pesos across the border from the United States to Mexico, and vice versa
Answer: D
NEW QUESTION 103
What is an indicator of suspicious activity?
- A. Large and frequent credit balances on a credit card resulting in request for refunds
- B. A convenience store that brings in $20s and $10s and requests small bills and change
- C. An online retailer that uses a third-party payment processor to facilitate its transactions
- D. A customer who pay back a late loan all at once after collecting on a bad debt
Answer: D
NEW QUESTION 104
What should an effective anti-money laundering training program include?
- A. Real-life money laundering examples
- B. Random testing of employees to ensure proper understanding of policies
- C. Computer-based modules titles differently for each job description in the bank
- D. Lists of anti-money laundering regulations
Answer: A
NEW QUESTION 105
In some instances, a financial institution may receive a warrant from law enforcement authorities to search its premises. A search warrant is a grant of permission from a court for a law enforcement agency to search certain designated premises and seize specific categories of items or information. Generally, what is the required threshold for the requesting agency to establish in order to obtain a search warrant of a financial institution?
- A. A preponderance of the evidence
- B. Clear and convincing proof
- C. Reasonable belief
- D. Probable cause
Answer: C
NEW QUESTION 106
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. develop a new account questionnaire to quantify the level of risk for new international accounts.
- B. conduct a risk assessment of the bank's international electronic fund transfer activity.
- C. close all accounts which have had a dramatic increase in international electronic fund transfer activity.
- D. file a suspicious transaction report on international customers receiving large electronic fund transfers.
Answer: A
NEW QUESTION 107
According to the Financial Action Task Force 40 Recommendations, Designated Non-Financial Businesses and Professions include
- A. real estate agents.
- B. hawala operators.
- C. money services businesses.
- D. commodities traders.
Answer: B
NEW QUESTION 108
A relationship manager in a bank has had a private banking customer for 10 years. The customer has business accounts and investments and seeks advice on the creation of a company overseas. The relationship manager refers the customer to the commercial banking manager and vouches for the customer. Which of the following risk factors is the most important?
- A. The proposed offshore jurisdiction is known for its strong privacy laws limiting access to customer information by law enforcement.
- B. The customer does not want to provide more information than when the first account was opened. C.
The company wants to transfer funds in large, even amounts. - C. Entities that are to receive funds from this company are located in the same country.
Answer: B
NEW QUESTION 109
A customer has held an account at a local credit institution for 10 years. The account has received deposits twice weekly for the same amount and has never shown signs of suspect behavior. Monitoring software indicated that in the past few months the account has received several large deposits that were not in line with the account history. When asked, the customer states she recently sold a piece of property, which is supported with a proof of sale. What should the compliance officer do next?
- A. Document reasons for not filing a STR
- B. Investigate these unusual transactions further
- C. Contact the local FIU for advice
- D. File an STR with the competent authorities
Answer: D
NEW QUESTION 110
Which action indicates possible Penza scheme activity?
- A. A licensed investment advisor lures aging/retired professionals to invest in securities
- B. A licensed seller offers higher profit on investments in a high risk country
- C. An unlicensed investment advisor offers profits other investments cannot guarantee
- D. A unlicensed investment advisor offers returns that are competitive with industry benchmarks
Answer: C
NEW QUESTION 111
A retail bank has just acquired a credit card business. The bank's anti-money laundering policy requires that new employees are trained within 30 days of their hire date and refresher training is delivered to all employees on an annual basis.
Is the bank's existing anti-money laundering training adequate to be delivered to employee of the newly acquired credit card business?
- A. No, anti-money laundering training needs to be delivered face-to-face for credit card businesses.
- B. Yes, the existing training covers the anti-money laundering regulations that the bank is required to follow.
- C. Yes, the existing training covers the bank's policies, procedures, and processes.
- D. No, anti-money laundering training needs to be tailored and focused on the risks specific to the business.
Answer: B
NEW QUESTION 112
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How to study the CAMS Exam
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- 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 the economic and social consequences of money laundering
- Determine the risks to individuals or institutions for violation of AML laws.
- 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.
- 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.
- 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
- 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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