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The CAMS certification is issued by the Association of Certified Anti-Money Laundering Specialists (ACAMS), a leading international organization in the AML field. ACAMS provides training, certification, and networking opportunities to AML professionals worldwide. The CAMS certification is valid for three years, and candidates are required to earn 60 continuing education credits (CECs) during this period to maintain their certification status.
NEW QUESTION # 10
To ensure that an institution's anti-money laundering program is current, which step should be taken?
- A. The program should be evaluated and updated at least every six months be the Board of Directors
- B. The program should be reassessed at least annually
- C. The program should be sent to the institution's government regulator on a periodic basis
- D. The program should be reviews by a federal law enforcement officer for gaps in controls
Answer: C
NEW QUESTION # 11
What are two requirements for monitoring and reporting suspicious activity for correspondent banking according to the Wolfsberg Principles? (Choose two.)
- A. Incorporate due diligence results such as customer risk ratings
- B. Investigate and report suspicious activity only for the correspondent bank's clients
- C. Utilize downstream correspondents to investigate and report suspicious activity
- D. Incorporate suspicious activity monitoring into periodic reviews
Answer: A,D
NEW QUESTION # 12
What are three elements of a sound Customer Due Diligence Program?
- A. Determination of who in the institution should be assigned to the prospective customer as a liaison
- B. Determination of what type of customer the financial institution will accept
- C. Obtaining date of birth and address of a prospective customer
- D. Training as to how and to what extent to identify prospective customers
Answer: B,C,D
NEW QUESTION # 13
How can a financial institution verify the nature and purpose of a business and its legitimacy?
- A. By reviewing a copy of the corporation's latest audited reports and accounts
- B. By using an independent information verification process, such as by accessing public andprivate databases
- C. By reviewing the company's website
- D. By undertaking a company search or other commercial inquires to see that the institution hasnot been, or is not in the process of being dissolved of terminated
Answer: B
NEW QUESTION # 14
At a small community bank, the compliance officer identifies unusual activity on a customer, who with his personal and company accounts, is the bank's largest depositor. The customer's companies have significant balances on their outstanding loans. The compliance officer notices that there is a lot of unusual movements of money between the customer's individual and business accounts. After filing a suspicious transaction report (STR), the compliance officer gets a call from law enforcement indicating that they want the bank to keep the account open while they conduct an investigation into the customer.
How should the compliance officer escalate this information to the board of directors?
- A. By providing a copy of the STR to the board
- B. By providing a copy of the letter from law enforcement asking the bank to keep the account open.
- C. By informing the regulator to bring it up with their next meeting with the board
- D. By providing a high level summary of the activity and the interactions with law enforcement
Answer: C
NEW QUESTION # 15
A customer comes into a financial institution and deposits a large amount of cash. He has never done that before. When asked about the deposit, he indicates he recently sold a used car and received cash.
He does not trust forms of payment and is wary of counterfeit money orders. What should the bank do?
- A. The institution should close the account before another issues arise
- B. While the explanation may be plausible, the institute should nonetheless file a Suspicious Transaction Report to protect itself
- C. The bank has received a plausible explanation, so it should do nothing
- D. While the explanation appears plausible, the institution should, for a period of time, monitor the account for cash transactions and suspicious activity
Answer: D
NEW QUESTION # 16
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. Contact the local FIU for advice
- B. File an STR with the competent authorities
- C. Document reasons for not filing a STR
- D. Investigate these unusual transactions further
Answer: B
NEW QUESTION # 17
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 applicablelocal laws
- B. Only provide information that is specifically and directly requested
- C. Ensure communication with regulatory and law enforcement authorities is conducted onlythrough the Board of Directors
- D. Communicate with regulatory and law enforcement authorities in line with applicable local laws
Answer: C
NEW QUESTION # 18
Historically, which vehicle is most often used to hide beneficial ownership?
- A. A charitable organization
- B. A limited liability partnership
- C. An offshore company
- D. Professional association
Answer: A
NEW QUESTION # 19
A long-term client of an insurance company makes changes to a policy that require payment of an additional lump sum. The amount payable is high, though within the client's means based on the KYC information collected. The payment is made via a company in another jurisdiction that is known to have lax AML controls.
Which indicator of suspicious activity is present?
- A. The additional premium payable appears to be within the client's means based on the KYC information collected.
- B. The payment was made via a company that appears to be owned and controlled by the client being insured.
- C. A long-term client wants a change to a policy that is already in force.
- D. The payment was made via a company in a jurisdiction known to have lax AML controls.
Answer: D
Explanation:
Explanation
Making payments via a company located in a jurisdiction that is known to have lax anti-money laundering controls is a sign of suspicious activity and should be reported. When making a payment of this nature, the insurance company should be aware of the client's source of funds and the possible risks associated with the transaction.
NEW QUESTION # 20
Which action does the Financial Action Task Force (FATF) recommend be taken against jurisdictions that have strategic deficiencies?
- A. Apply counter-measures
- B. Create an action plan to address the deficiencies without the support of the FATF
- C. Add the jurisdiction to the United Nations' list of sanctioned jurisdictions
- D. Conduct due diligence
Answer: A
Explanation:
Explanation/Reference: http://www.fatf-gafi.org/publications/high-risk-and-other-monitored-jurisdictions/documents/public- statement-october-2018.html
NEW QUESTION # 21
An institution has made the decision to exit a client relationship due to anti-money laundering concerns. Prior to starting the close out process, the institution receives a written request from a law enforcement agency to keep the account open. The client is the subject of an ongoing investigation and law enforcement wants the institution to continue to monitor the account and report any suspicious activity.
What is a primary consideration the institution should keep in mind when deciding whether to agree to this request?
- A. The anticipated cost of complying with the law enforcement request
- B. The number of suspicious transaction reports previously filed on the client
- C. The fact that the institution has a solid record in complying with law enforcement requests
- D. Whether the institution can continue to meet its regulatory obligations with the accounts open
Answer: D
NEW QUESTION # 22
A compliance officer provides an overview of the bank's anti-money laundering program to a group of new tellers during employee orientation.
Which training element should be delivered to this audience?
- A. The financial institution's surprise cash audit policy
- B. Past check fraud losses incurred by the financial institution
- C. Results of recent risk assessments
- D. Large cash transaction reporting procedures
Answer: D
NEW QUESTION # 23
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 the broker-dealer affiliate can rely on the due diligence done by the bank
- D. Whether there is a mutual legal assistance treaty in place between the two institutions
Answer: B
NEW QUESTION # 24
A bank provides trade financing for a company whose primary export is steel.
Which action by the company indicates possible money laundering?
- A. The company often deals with foreign currency exchanges.
- B. The company regularly understates the value of goods exported.
- C. The company frequently sells above or below its competitors' price.
- D. The company frequently transfers funds to other bank accounts located in other jurisdictions.
Answer: D
NEW QUESTION # 25
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. Implement a temporary mitigation plan that enables effective management of the risk until a permanent plan can be developed
- 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. Launch a long-term project to remediate the control deficiency
Answer: A
NEW QUESTION # 26
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