The New CAMS 2023 Updated Verified Study Guides & Best Courses
Authentic CAMS Exam Dumps PDF - 2023 Updated
ACAMS CAMS Certification Exam is an essential credential for professionals in the financial crime prevention industry. It provides a comprehensive understanding of AML regulations and best practices and demonstrates a commitment to professional development and excellence. With the ever-increasing threat of money laundering and terrorist financing, the demand for CAMS-certified professionals is expected to continue to grow, making the certification a valuable investment in one's career.
NEW QUESTION # 291
Which situation is the highest risk fr money laundering and terrorist financing activity?
- A. 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
- B. A customer purchases casino chips and engages in significant game play before requesting a casino check for the remainder
- C. 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 casino check
- D. A customer purchases casino chips using a credit card and engages in minimal game play before redeeming the chils for a casino check
Answer: B
NEW QUESTION # 292
Which statement is true regarding the Financial Action Task Force standards for suspicious activity reports (SARs) information sharing within a financial group?
- A. Financial institutions must require approval from regulators to share SARs information and supporting documentation.
- B. Financial institutions should establish sufficient safeguards concerning the confidentiality of information shared for AML purposes.
- C. Financial institutions cannot share customer information at all since it is confidential.
- D. Financial institutions must retain copies of SARs and supporting documentation for five years from the date of filing the SARs.
Answer: B
Explanation:
Explanation
According to the Financial Action Task Force (FATF) standards for suspicious activity reports (SARs) information sharing within a financial group, "Financial institutions should establish adequate procedures to ensure that confidentiality of information is maintained and that information is only used for purposes permitted under national law. Where the parent institution is located in a country that does not permit such sharing, financial institutions should take measures to address this limitation" (CAMS Manual, 6th Edition, page 476). Therefore, financial institutions must establish sufficient safeguards concerning the confidentiality of information shared for AML purposes.
NEW QUESTION # 293
What can a compliance officer do in the absence of automated software to conduct U.S. Department of the Treasury Office of Foreign Assets Control (OFAC) sanction screens?
- A. Use the consolidated Sanctions List Search screen on the OFAC website
- B. Rely on a credit report from OFAC
- C. Obtain up-to-date copies of the OFAC's Specially Designated Nationals list
- D. Conduct a key-word search on the Internet
Answer: C
NEW QUESTION # 294
Which two actions should Financial Intelligence Units (FIUs) take when submitting a request to another FIU?
(Choose two.)
- A. Send the same request to all FIUs
- B. Disclose the reason and purpose for the request
- C. Make best efforts to provide complete and factual information
- D. Provide feedback on how the information was used
Answer: B,C
NEW QUESTION # 295
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. Results of related audits and examinations.
- B. The total credit exposure for non-cooperative countries and territories.
- C. Details on inquiries received from law enforcement.
- D. Notification of management changes in the different major divisions.
Answer: C
NEW QUESTION # 296
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?
- A. Disable the software until more staff are trained to process alerts.
- B. Ensure alert parameters are based on risk.
- C. Adjust software parameters so the number of alerts decrease gradually.
- D. Reset software parameters to reduce risk sensitivity.
Answer: B
NEW QUESTION # 297
Which type of sanctions are most likely to be used in order to avoid escalating violent conflicts and/or proliferation of weapons?
- A. Financial prohibitions
- B. Export and import restrictions
- C. Arms and related materials embargo
- D. Asset freeze
Answer: D
NEW QUESTION # 298
With which person(s) should an anti-money laundering officer coordinate when implementing a new hire screening program?
- A. Human Resources
- B. Local Financial Intelligence Unit
- C. Internal Auditor
- D. Institution's Regulator
Answer: A
NEW QUESTION # 299
What is the intentional evasion of a reporting or recordkeeping requirement?
- A. Structuring
- B. Layering
- C. Placement
- D. Money laundering
Answer: D
NEW QUESTION # 300
An anti-money laundering specialist notes a significant reduction in suspicious transaction report filings at a particular branch. Which of the following actions is most appropriate?
- A. Place the branch on the watchlist to assure a review during the next quarter.
- B. Analyze the branch activity reports to determine whether there has been a decrease in branch activity.
- C. Review branch exception reports to determine changes in activity in accordance with customer profiles.
- D. Review staff records to see whether inexperienced personnel are in critical positions without appropriate training.
Answer: B
NEW QUESTION # 301
What should countries do to help prevent non-profit organizations from being abused for the financing of terrorism according to the Financial Action Task Force 40 Recommendations?
- A. Ensure non-profit organizations cannot be used to conceal or obscure the diversion of funds intended for legitimate purposes to terrorists' organizations
- B. Require all non-profit organizations to register with the country's financial intelligence unit
- C. Create laws that forbid non-profit organizations from completing cross-border transactions without first running them through known terrorist data bases
- D. Allow for freezing assets of non-profit organizations
Answer: A
Explanation:
Reference:
http://www.fatf-gafi.org/media/fatf/documents/reports/BPP-combating-abuse-non-profitorganisations.pdf (p.9)
NEW QUESTION # 302
An anti-money laundering expert is hired by a new Internet bank to assess the money laundering threat to the bank. Because it is an o line bank the most important recommendation for the expert to make is that the bank
- A. set up automated programs to analyze transaction for money laundering activity.
- B. ensure that prospective new customers can be properly identified.
- C. ensure that a firewall is set up to protect the transactions.
- D. limit the amount which can be processed per transaction.
Answer: D
NEW QUESTION # 303
What is a key risk associated with Correspondent Accounts according to the Basel Customer Due Diligence paper?
- A. The service fees are insufficient to cover the cost of managing the account
- B. The respondent bank's customer acceptance and know your customer policies are ineffective
- C. The volume and value of transactions passing through the account may not be in line with the original correspondent agreement
- D. It is not used on a daily basis
Answer: B
NEW QUESTION # 304
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.
- A. 2, 3, and 4 only
- B. l, 2, and 4 only
- C. 1, 2, and 3 only
- D. 1, 3, and 4 only
Answer: C
NEW QUESTION # 305
A customer living in a high-risk jurisdiction makes frequent, large cash deposits at a bank. The same customer sends small wire transfers to unrelated parties in other high-risk jurisdictions.
What are two red flags that may indicate money laundering? (Choose two.)
- A. Large cash deposits are from a high-risk jurisdiction
- B. Wire transfers are to high-risk jurisdiction
- C. The client resides in a high-risk jurisdiction
- D. The bank allows cash deposits
Answer: A,B
NEW QUESTION # 306
A bank customer operates a fuel station as a sole proprietorship. The customer places deposits and other credits in a business account. The customer routinely transfers money from the business account to a brokerage account where he invests in money market securities. The customer also routinely makes monthly transfers to a credit card and line of credit to pay off balances. The volume of activity flowing through the business account has doubled in the past 3 months. An internal investigator reviews business account statements and credit card activity for the past 3 months, scans media articles about the customer, and interviews the account officer about the customer and account activity. This internal investigation did not provide an explanation for the increased activity1. Which of the following should the anti-money laundering specialist recommend to the internal investigator?
- A. Analyze account activity for selected accounts since the accounts were opened.
- B. Concentrate on trades made in the brokerage account.
- C. Review activity in all related customer accounts in the past year.
- D. No additional steps are necessary because this was a thorough review of the activity.
Answer: A
NEW QUESTION # 307
What are two requirements of United States financial institutions when conducting business with an international financial institution as a result of the USA PATRIOT Act? (Choose two.)
- A. Performing enhanced due diligence on shell banks
- B. Complying with Special Measures issued under the USA PATRIOT Act
- C. Visiting the head office of the international financial institution
- D. Performing due diligence on correspondent accounts
Answer: B,D
NEW QUESTION # 308
How does the Asian/Pacific Financial Action Task Force <FATF>-Style Regional Body help its members implement recommendations from the FATF? (Select Two.)
- A. Encourages cooperative AML efforts in the region
- B. Endorses regulations that define money laundering based on the model laws issued by the respective member states
- C. Facilitates the adoption and implementation of internationally accepted AMI measures by member jurisdictions
- D. Requires members to maintain lists of regional money laundering and terrorists financing issues relevant to their region
- E. Promotes laws that allow judicial challenges to seizure orders by an administrative body
Answer: A,C
Explanation:
Explanation
The Asian/Pacific Financial Action Task Force-Style Regional Body (APG) helps its members implement recommendations from the FATF by facilitating the adoption and implementation of internationally accepted AML measures by member jurisdictions (CAMS Manual, 6th Edition, Page 22). The APG also encourages cooperative AML efforts in the region, which can include information-sharing and mutual evaluations to assess member compliance with FATF recommendations (CAMS Manual, 6th Edition, Page 25). Therefore, options C and D are the correct answers.
NEW QUESTION # 309
To guard against acquisition or control of a financial institution by money launderers or their associates, what should supervisory agencies require?
- A. Comprehensive compliance programs
- B. Thorough due diligence on prospective owners
- C. Prospective owners have prior experience in the area of finance
- D. Adequate surety bonds, cash deposits, or equivalencies
Answer: B
NEW QUESTION # 310
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