Latest [May 17, 2024] Realistic Verified CAMS Dumps
Pass ACAMS CAMS Exam Updated 617 Questions
ACAMS CAMS certification program is a valuable asset for professionals who are dedicated to preventing financial crimes. It provides individuals with the knowledge and skills needed to stay up-to-date with the latest AML regulations and best practices, and it also offers a way for professionals to demonstrate their expertise and commitment to AML compliance.
NEW QUESTION # 217
The most important anti-money laundering issue associated with on-line banking is accurately
- A. Analyzing data
- B. Generating reports
- C. Capturing data
- D. Identifying clients
Answer: D
Explanation:
One of the main challenges of online banking is verifying the identity of customers who open accounts or conduct transactions remotely, without face-to-face interaction. This poses a higher risk of money laundering, as criminals may use false or stolen identities, or hide behind shell companies or nominees, to move illicit funds through online platforms. Therefore, online banking providers must implement robust and risk-based customer due diligence (CDD) measures, such as verifying identity documents, using biometric or digital verification methods, screening customers against sanctions and watchlists, and monitoring customer behavior and transactions for any red flags or anomalies.
References:
ACAMS Study Guide for the CAMS Certification Examination, 6th Edition, Chapter 2: Compliance Standards for Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT), Section 2.2: Customer Due Diligence (CDD) and Know Your Customer (KYC), p. 32-35.
eWallets: AML Risks & How to Comply1
NEW QUESTION # 218
In relationship to life insurance business, the third European Directive states that Member States may allow the identity verification of the beneficiary under the policy after the business relationship has been established, but before which events?
- A. At or before 30 days of the relationship being established under the policy
- B. At or before the time of payout or before the beneficiary intends to exercise rights vested underthe policy
- C. At or before a premium payment has been accepted for the policy purchased
- D. At or before the policy is issued to the beneficiary by the insurance company
Answer: B
NEW QUESTION # 219
A bank located in Arizona is considering a loan application for a new client. The collateral for the loan is a property in Florida.
The loan will be in the name of a limited company (LLC) whose ownership is not disclosed to the bank. The LLC was established by a New York-based attorney.
The loan will be repaid by the LLC in monthly wire transfers of $9,000 which is more than the required monthly payment.
Which aspect indicates the potential for money laundering?
- A. The repayment in the amount of $9,000 indicates potential structuring
- B. The collateral, a property in Florida, is not located in Arizona
- C. The attorney associated with the account is outside the bank's lending area
- D. The LLC's ownership is not disclosed to the bank
Answer: A,D
NEW QUESTION # 220
What should an employee do after witnessing suspicious activity from a coworker?
- A. Discuss the suspicious activity with your supervisor.
- B. Request help from colleagues in determining that the best course of action.
- C. Request that the coworker provide justification for their actions.
- D. Escalate to the company's conflict line or compliance department.
Answer: D
Explanation:
An employee who witnesses suspicious activity from a coworker should not confront the coworker or discuss the activity with their supervisor. Instead, they should report the activity to their employer's conflict line or compliance department, who can investigate the matter and take the appropriate action. It is important to remember that employees are legally obligated to report any suspicious activity they witness.
NEW QUESTION # 221
Law enforcement is conducting an investigation of a financial institution (FI) and has submitted an overly broad and unduly intrusive request. Which is a Fl's most appropriate response?
- A. Delay a response until all documents can be gathered regardless of the duration.
- B. Narrow the request through a prompt response to the law enforcement agency.
- C. Contest the request with the company's board of directors and key senior management.
- D. Ignore the request due to the unacceptable volume of information contained within.
Answer: B
Explanation:
Financial institutions (FIs) are required to cooperate with law enforcement agencies (LEAs) in their investigations of money laundering, terrorist financing, and other financial crimes. However, sometimes LEAs may submit requests for information or documents that are overly broad, unduly intrusive, or unreasonable in scope or volume. Such requests may pose challenges or risks for FIs, such as violating customer privacy, compromising data security, disrupting business operations, or incurring excessive costs.
The most appropriate response for an FI in such a situation is to narrow the request through a prompt response to the LEA. This means that the FI should communicate with the LEA as soon as possible to clarify the purpose, scope, and relevance of the request, and to negotiate a more reasonable and proportionate request that meets the LEA's needs and the FI's capabilities. The FI should also explain the potential difficulties or consequences of complying with the original request, and propose alternative or additional sources of information that may be more useful or accessible. The FI should document the communication and the agreed terms of the request, and comply with the request in a timely and accurate manner.
By narrowing the request through a prompt response, the FI can demonstrate its good faith and willingness to cooperate with the LEA, while also protecting its own interests and obligations. This can help avoid or resolve any conflicts or misunderstandings between the FI and the LEA, and facilitate a more efficient and effective investigation.
References:
Requests by Law Enforcement for Financial Institutions to Maintain Accounts EFFECTIVE SUPERVISION AND ENFORCEMENT BY AML/CFT SUPERVISORS OF THE FINANCIAL SECTOR AND LAW ENFORCEMENT Bank Secrecy Act/Anti-Money Laundering: Requests by Law Enforcement for Financial Institutions to Maintain Accounts Support of Law Enforcement ACAMS CAMS Certification Study Guide 6th Edition
NEW QUESTION # 222
Which statements regarding the USA PATRIOT ACT best describe key aspects that have extraterritorial reach? (Choose three.)
- A. It obliges the government to trace the origin of the funds when a seizure of assets occurs in a correspondent account that has been opened and maintained for a foreign bank in the US.
- B. It allows the Secretary of the Treasury to order a US financial institution (FI) to close a correspondent account when a subpoena has not been responded by a foreign bank in a timely manner.
- C. It allows federal banking supervisors to require records of the identity of the owners of a foreign bank from a Fl operating in the US.
- D. It excludes as foreign FIs businesses that would be considered broker-dealers, money transmitters, and currency exchangers.
- E. It allows for the US Attorney General to subpoena records from a foreign bank with US correspondent accounts, including those that are located outside the US.
- F. It allows foreign banks to voluntarily designate a registered agent in the US to accept service of subpoenas.
Answer: B,D,E
Explanation:
Reference:
https://www.jonesday.com/-/media/files/publications/2007/10/extraterritorial-application-of-the-usa-patriot-ac/fi
https://www.lawfareblog.com/long-arm-us-law-patriot-act-anti-money-laundering-act-2020-and-foreign-banks
NEW QUESTION # 223
Which primary international authoritative body designates sanctions?
- A. Organizationof Economic Co-operation and Development (OECD)
- B. International Monetary Fund (IMF)
- C. United Nations (UN)
- D. Financial Action Task Force (FATF)
Answer: C
NEW QUESTION # 224
Why do organized crime groups often use front companies? (Choose two).
- A. Because using multiple front companies can make it easier to control an entire sector of the economy.
- B. Because they are not registered, front companies are not subject to income and other sales taxes.
- C. Because they can use the company's bank accounts to comingle deposits with those of legal businesses.
- D. Because they are generally subject to lighter due diligence requirements by banks and other financial services providers.
- E. Because front companies generally charge higher prices than legitimate companies, so profit margins are higher.
Answer: C,D
NEW QUESTION # 225
A bank in an offshore jurisdiction approaches an institution about opening a new correspondent banking relationship. Prior to opening the account, the new account representative obtains copies of the offshore bank's anti-money laundering policies and procedures, and all appropriate legal documentation for the bank; ascertains no third parties will be able to access the accounts; and determines the owners of the bank, the bank's primary business activities, and the business address of the bank. Which of the following steps does the Basel Committee on Banking Supervision's Customer Due Diligence for Banks Paper recommend the banker take prior to opening Oils correspondent account?
1. Conduct a site visit and meet all the principals and beneficial owners in person.
2. Verify the bank has a physical presence in the country where it is incorporated.
3. Confirm the bank is subject to regulatory supervision with adequate anti-money laundering laws.
4. Obtain and maintain a complete listing of the correspondent bank's customers, including politically exposed persons.
- A. 3 and 4 only
- B. 1 and 4 only
- C. 1 and 2 only
- D. 2 and 3 only
Answer: D
Explanation:
The Basel Committee on Banking Supervision's Customer Due Diligence for Banks Paper recommends that banks should verify the bank has a physical presence in the country where it is incorporated and confirm the bank is subject to regulatory supervision with adequate anti-money laundering laws before opening a correspondent account. These steps are intended to prevent the establishment of relationships with shell banks, which are banks that have no physical presence in any country and are not affiliated with a regulated financial group. Shell banks pose a high risk of money laundering and terrorist financing, as they can be used to hide the identity and source of funds, evade regulatory oversight, and facilitate illicit transactions. Therefore, banks should conduct enhanced due diligence on correspondent banks that operate in offshore jurisdictions, where the regulatory standards and transparency may be lower or insufficient.
References:
ACAMS CAMS Certification Study Guide, 6th Edition, Chapter 4, Section 4.3.1, p. 1091 ACAMS CAMS Certification Exam Outline, 6th Edition, Domain 2, Task 2.2, p. 52 Basel Committee on Banking Supervision, Customer Due Diligence for Banks, October 2001, p. 13-143
NEW QUESTION # 226
A popular restaurant in town has begun depositing less cash than it has in prior years. In a review of the customer's accounts, you notice that credit card receipts have increased with no explanation.
The account officer discovers that the restaurant has installed a privately-owned automated teller machine (ATM) onsite and has begun construction of a patio dining area.
Which red flag should trigger additional investigation?
- A. Privately-owned ATM
- B. Increased credit card receipts
- C. Lower cash deposits
- D. Construction of the new patio dining area
Answer: B
NEW QUESTION # 227
What should a compliance officer do during an ongoing investigation into a client's activities by a competent authority?
- A. Communicate only in writing regulatory and law enforcement authorities in line with applicable local laws
- B. Only provide information that is specifically and directly requested
- C. Ensure communication with regulatory and law enforcement authorities is conducted only through the Board of Directors
- D. Communicate with regulatory and law enforcement authorities in line with applicable local laws
Answer: C
NEW QUESTION # 228
When should new business products to evaluated for AML concerns?
- A. At the time of the next enterprise risk assessment
- B. On an annual basis
- C. After they have been implemented so there is empirical data to review
- D. Before they are launched into the market
Answer: D
Explanation:
New business products should be evaluated for AML concerns before they are launched into the market. This is because new products may introduce new risks or vulnerabilities that could be exploited by money launderers or terrorist financiers. By conducting a pre-launch assessment, a financial institution can identify and mitigate these risks, design appropriate controls and procedures, and ensure compliance with the relevant laws and regulations. A pre-launch assessment can also help a financial institution to align its AML strategy with its business objectives, and avoid potential reputational damage or regulatory sanctions.
References:
9 Things to Consider When Evaluating an AML Solution
CAMS Study Guide 6th Edition, page 38.
NEW QUESTION # 229
A compliance officer identifies a potentially significant risk in a popular financial product. Further investigation reveals there is no mitigating control.
Which course of action should the compliance officer take?
- A. Launch a long-term project to remediate the control deficiency
- B. Note the risk and address it during the next round of policy and procedure review
- C. Immediately cease providing the product and only offer it after effective permanent mitigation is implemented
- D. Implement a temporary mitigation that enables effective management of the risk until a permanent plan can be developed
Answer: D
Explanation:
Explanation
as there's NO mitigating control, the temporary control system must be developed and implemented until the permanent mitigating control is developed and implemented.
NEW QUESTION # 230
Which of the following is the financial stage of money laundering?
- A. integration
- B. off shoring
- C. placement
- D. structuring
Answer: A
Explanation:
Explanation
Explanation/Reference:
The Integration Stage
The final stage of the money laundering process is termed the integration stage. It is at the integration stage where the money is returned to the criminal from what seem to be legitimate sources. Having been placed initially as cash and layered through a number of financial transactions, the criminal proceeds are now fully integrated into the financial system and can be used for any purpose. There are many different ways in which the laundered money can be integrated back with the criminal; however, the major objective at this stage is to reunite the money with the criminal in a manner that does not draw attention and appears to result from a legitimate source. For example, the purchases of property, art work, jewellery, or high-end automobiles are common ways for the launderer to enjoy their illegal profits without necessarily drawing attention to themselves.
NEW QUESTION # 231
What indicates potential money laundering activity by a lawyer?
- A. A lawyer's trust account regularly receives wire transfers from unknown remitters in a high risk country and immediately redirects the same funds to the same remitters account in a low risk country
- B. A lawyer's account in a high risk country receives a cash deposit of an amount that is considerable below the reporting threshold
- C. A lawyer's account in a low risk country receives a bank draft from another lawyer firm in a high risk country
- D. A lawyer's trust account receives a large value wire transfer from a publicly listed life insurance company and then immediately transfers the same funds out to an unknown individual in a low risk country
Answer: A
Explanation:
Option A indicates potential money laundering activity by a lawyer, as it involves the use of a trust account to receive and transfer funds from unknown sources in high risk jurisdictions, without any apparent legitimate purpose or explanation. This could be a sign of layering, where the money launderer attempts to conceal the origin and ownership of the illicit funds by moving them through multiple accounts and jurisdictions. Option B does not necessarily indicate money laundering, as the source of the funds is a reputable entity and the transfer could be explained by a legitimate transaction or service. Option C does not necessarily indicate money laundering, as the bank draft could be a payment for a legal service or a settlement between parties. Option D does not necessarily indicate money laundering, as the cash deposit could be a fee for a legal service or a donation, and the amount could be below the reporting threshold to avoid unnecessary paperwork or scrutiny.
References: =
CAMS Certification Package - 6th Edition | ACAMS1
CAMS Certifications: How to Get CAMS Certified | ACAMS2
ACAMS CAMS Certification Video Training Course - Exam-Labs3
Exam CAMS: Certified Anti-Money Laundering Specialist (the 6th edition)4
NEW QUESTION # 232
A new compliance officer is reviewing the bank's anti-money laundering program and notices that the risk assessment was completed six months ago. Since that time, the bank acquired another financial institution, re-named the internal records group, and streamlined cash handling procedures.
Which factor causes the compliance officer to update the bank's risk assessment?
- A. The risk assessment was completed six months ago
- B. The internal records group has been re-named
- C. The cash handling procedures were streamlined
- D. The bank acquired another institution
Answer: D
NEW QUESTION # 233
A key element required to ensure an anti-money laundering compliance program is effectively embedded into an institution's culture is
- A. ongoing training.
- B. a record retention policy.
- C. peer review.
- D. an internal audit.
Answer: A
Explanation:
According to the Anti-Money Laundering Specialist (the 6th edition) study guide, ongoing training is a key element of an effective anti-money laundering compliance program, as it ensures that the staff are aware of their roles and responsibilities, the latest regulatory developments, and the emerging risks and trends in money laundering and terrorist financing1. Ongoing training also helps to foster a culture of compliance within the institution, where the staff are committed to adhering to the policies and procedures, detecting and reporting suspicious activities, and protecting the institution from reputational and legal damages2.
References:
1: CAMS Study Guide, 6th Edition, Chapter 2, Section 2.5, page 53
2: CAMS Study Guide, 6th Edition, Chapter 2, Section 2.6, page 54
NEW QUESTION # 234
A client opens a bank account for a multi-level marketing company. The debits and credits of the account are numerous and very involved. Further, there are a lot of international transactions. Also, funds are being tunneled from the company to the client's personal account in another jurisdiction.
Which two steps should law enforcement take in investigating this matter? (Choose two.)
- A. Examine the flow of money from the company to the individual in an effort to determine if it is legitimate
- B. Ask the bank for the history of this multi-level marketing company
- C. Examine possible Suspicious Activity Report information received from the local Financial Intelligence Units
- D. Determine who are the signatories on the account
Answer: A,D
NEW QUESTION # 235
Which three criteria does a shell bank meet according to the Wolfsberg Principles on Correspondent Banking?
Choose 3 answers.
- A. It does not conduct business at a fixed address in a jurisdiction in which it is authorized to conduct business.
- B. It does not employ one or more individuals at its fixed address where it is authorized to conduct business or maintain operating records at that address
- C. It is not subject to AML laws that require it to implement an AML program
- D. It is not subject to inspection by the banking authority that licensed it to conduct banking activities
Answer: A,B,D
Explanation:
According to the Wolfsberg Financial Crime Principles for Correspondent Banking1, a shell bank is defined as a bank that has no physical presence in the jurisdiction in which it is incorporated and licensed, and which is unaffiliated with a regulated financial group that is subject to effective consolidated supervision. Physical presence means meaningful mind and management located within a country. The existence simply of a local agent or low level staff does not constitute physical presence. Therefore, a shell bank meets the criteria A, B, and D, as it does not conduct business at a fixed address, does not employ one or more individuals or maintain operating records at that address, and is not subject to inspection by the banking authority that licensed it.
Criterion C is not specific to shell banks, as any bank, whether shell or not, may or may not be subject to AML laws that require it to implement an AML program, depending on the jurisdiction.
References:
Wolfsberg Financial Crime Principles for Correspondent Banking1, Section: Definitions, pp. 3-4.
NEW QUESTION # 236
A bank maintains a relationship with a customer who owns a small bakery business.
Which customer action indicates potential money laundering?
- A. The customer recently wired a large amount to a foreign jurisdiction where family is located
- B. The customer has multiple bank accounts at several locations
- C. The customer continually makes regular cash deposits
- D. The customer purchased property insurance that is twice the value of the business
Answer: B
NEW QUESTION # 237
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. Entities that are to receive funds from this company are located in the same country.
- C. 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.
Answer: C
NEW QUESTION # 238
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The CAMS certification is highly respected in the industry and is recognized by employers, regulators, and law enforcement agencies worldwide. It is a comprehensive and rigorous exam that covers a broad range of topics related to anti-money laundering (AML), including risk assessment, customer due diligence, transaction monitoring, and regulatory compliance. CAMS exam is designed for professionals who work in various roles in the financial industry, including compliance officers, risk managers, auditors, and law enforcement professionals.
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