New ACAMS CAMS Dumps & Questions Updated on 2026
Dumps to Pass your CAMS Exam with 100% Real Questions and Answers
Passing the ACAMS CAMS exam is a significant achievement for individuals working in AML compliance. It demonstrates a commitment to excellence and professionalism in the field, as well as a dedication to staying up-to-date with the latest developments and best practices. It also opens up new career opportunities, as many employers require or prefer candidates who hold the CAMS certification.
The Certified Anti-Money Laundering Specialists (the 6th edition) certification program is administered by the Association of Certified Anti-Money Laundering Specialists (ACAMS), which is the largest international membership organization dedicated to fighting financial crime. The organization has been a leader in the field of AML training and certification for over 20 years. ACAMS provides comprehensive training and support to individuals who are seeking to earn the CAMS certification, including study materials, webinars, and practice exams.
NEW QUESTION # 424
Which statement about U.S. Specified Unlawful Activities (SUA) is true?
- A. SUAs are limited to crimes that occur within the borders of the U.S. and its territories and possessions
- B. At least one SUA must be proven in order to pursue a money laundering conviction
- C. In order to secure a conviction, the defendant must be proven to have known the precise nature of the source of funds
- D. SUAs are generally limited to a small sub-set of crimes
Answer: C
NEW QUESTION # 425
A bank operates in multiple countries and offers a variety of products and services. The compliance officer recently joined the bank and wants to better understand the inherent level of anti-money laundering risk across the entire organization.
Which two factors should be considered? (Choose two.)
- A. The Customer Due Diligence program
- B. The Transaction Monitoring program
- C. Products and services offered by the bank
- D. Countries that the bank operates in
Answer: C,D
Explanation:
The inherent level of anti-money laundering risk across the entire organization depends on various factors, such as the nature, size, complexity, and structure of the business, the customers, the products and services, and the countries or jurisdictions involved. Among the four options given, the transaction monitoring program and the customer due diligence program are not factors that determine the inherent risk, but rather measures that mitigate the risk. Therefore, they are not relevant for the compliance officer's purpose. The countries that the bank operates in and the products and services offered by the bank are important factors that affect the inherent risk, as they may expose the bank to different levels of money laundering threats, vulnerabilities, and regulatory requirements. For example, some countries or jurisdictions have high levels of corruption, unstable governments, or are known as money laundering havens1. They could also have inadequate AML/CFT regulatory and judicial frameworks, or be subject to economic sanctions2. Similarly, some products and services may pose higher risks than others, such as those that involve cash transactions, cross-border transfers, anonymous or non-face-to-face customers, or complex or innovative features34.
References: =
1: AML risk-rating models | McKinsey
2: Money laundering and terrorist financing risks - Financial Action Task Force (FATF)
4: AML Red Flags - What are the Top 10 Indicators? - ComplyAdvantage
5: Anti Money Laundering Risk Assessment - Financial Crime Academy
NEW QUESTION # 426
The recommended way lot a financial institution to respond to a request from a law enforcement agency is to:
- A. freeze the identified account immediately
- B. train all staff to enable them to respond to subpoenas.
- C. hand over documents that are protected by attorney-client privilege
- D. have an audit trail system to produce requested documentation
Answer: D
Explanation:
Explanation
Financial institutions are required by law to maintain records and documentation of customer transactions and to provide this information to law enforcement agencies upon request. However, financial institutions should also have policies and procedures in place to ensure that they comply with legal and regulatory requirements and protect customer privacy. Providing protected documents that are privileged under attorney-client privilege or freezing an account immediately may not be the appropriate response and may expose the financial institution to legal or reputational risks.
Reference: CAMS (6th ed.), Chapter 6, p. 261-262.
NEW QUESTION # 427
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 .
The account officer discovers that the restaurant has installed a privately-owned automated teller machine (ATM) onsite and has begun construction on a patio dining area.
Which red flag should trigger additional investigation?
- A. Privately-owned ATM
- B. Lower cash deposits
- C. Increased credit card receipts
- D. Construction of the new patio dining area
Answer: C
NEW QUESTION # 428
Which of the following is the main reason Internet gambling is an ideal web-based money laundering method?
- A. Ability to transfer value across jurisdictions.
- B. Large number of offshore websites located in known high-crime areas.
- C. Ease of connection and low subscription rate with major Internet service providers.
- D. High credibility of gambling websites.
Answer: A
Explanation:
Internet gambling is an ideal web-based money laundering method because it allows criminals to move funds across borders quickly, anonymously, and with minimal oversight12. Internet gambling sites can facilitate the placement, layering, and integration stages of money laundering by accepting cash deposits, issuing virtual credits, allowing bets on various games, and paying out winnings through different payment methods12. Internet gambling also poses challenges for law enforcement and regulators, as it operates in a complex and dynamic environment that involves multiple jurisdictions, service providers, and technologies12.
References:
ACAMS CAMS Study Guide (the 6th edition), Chapter 2: Money Laundering Risks and Methods, page
671
ACAMS Today, The Growing Threat of Online Gambling Money Laundering2
NEW QUESTION # 429
Which event occurs most frequently in money laundering in the insurance industry?
- A. Purchasing full-term insurance bonds
- B. Getting a reimbursement from an overfunded policy
- C. Failing to take advantage of the free-look period
- D. Redeeming a policy at the end of its term
Answer: B
Explanation:
One of the most common methods of money laundering in the insurance industry is to purchase a policy with illicit funds and then request a refund of the premiums, either partially or fully, before the policy matures.
This way, the money launderer can receive a legitimate payment from the insurance company, effectively washing the dirty money. This technique is also known as premium fraud or early surrender12 According to the Financial Crimes Enforcement Network (FinCEN), the most significant money laundering and terrorist financing risks in the insurance industry are found in life insurance and annuity products, because such products allow a customer to place largeamounts of funds into the financial system and seamlessly transfer such funds to disguise their true origin34 Some indicators of potential money laundering through insurance products are: 12 The customer pays the premiums with cash, cashier's checks, money orders, or other anonymous or unusual payment methods.
The customer overpays the premiums or makes multiple payments in excess of the required amount.
The customer cancels the policy during the free-look or grace period and requests a refund to a different account or a third party.
The customer purchases a policy that is inconsistent with their income, age, or risk profile.
The customer shows little interest in the benefits or terms of the policy, but is more concerned about the cancellation or surrender options.
1: AML in Insurance: How to Detect & Combat Money Laundering, ComplyAdvantage, 2022
2: Anti Money Laundering (AML) In Insurance Industry In 2021, Financial Crime Academy, 2023
3: Money laundering in the insurance industry, Insurance Commission, 2022
4: Money laundering in the insurance industry, Atty. Dennis B. Funa, Business Mirror, 2016
[5]: Anti-Money Laundering Requirements: FAQs for Insurance Companies, FinCEN, 2005
NEW QUESTION # 430
According to the Basel Committee on Banking Supervision standards, which statements best describe sound practices in relation to customer due diligence (CDD) policies and procedures? (Choose three.)
- A. Banks should take into consideration the occasional banking transaction or the size/level of assets to build an understanding of the customer's profile and behavior.
- B. Banks should identify its customers based on a general-rules based assessment without considering the expected size and use of the account.
- C. Banks should develop and implement clear acceptance policies and procedures to identify the types of customer that are likely to pose a higher risk of financing terrorism or money laundering.
- D. Banks should use CDD procedures based in another bank's standards when subject to the same criteria for handling funds of a shared customer.
- E. Banks should never allow for verification to be completed after the establishment of the business relationship since it would not be essential for the normal conduct of business.
- F. Banks should implement enhanced due diligence measures for entering business relationships with high- risk customers, such as approval by senior management.
Answer: A,C,F
Explanation:
According to the Basel Committee on Banking Supervision standards, the following statements best describe sound practices in relation to customer due diligence (CDD) policies and procedures:
* Banks should take into consideration the occasional banking transaction or the size/level of assets to build an understanding of the customer's profile and behavior. This is because the nature and frequency of transactions and the size of the account balance may indicate the level of risk associated with the customer and the need for ongoing monitoring1
* Banks should develop and implement clear acceptance policies and procedures to identify the types of customer that are likely to pose a higher risk of financing terrorism or money laundering. This is because banks should not enter into or maintain relationships with customers who pose unacceptable risks to the bank or the financial system. Banks should also apply a risk-based approach to CDD and apply more stringent measures to higher-risk customers12
* Banks should implement enhanced due diligence measures for entering business relationships with high- risk customers, such as approval by senior management. This is because banks should ensure that they have adequate information and controls to manage the risks posed by such customers and to comply with the relevant laws and regulations. Senior management should be involved in the decision-making process and be accountable for the outcomes12
1: Basel Committee on Banking Supervision, Consolidated KYC Risk Management, October 2004, page 6-
7. 2: Basel Committee on Banking Supervision, Customer due diligence for banks, October 2001, page 8-9.
NEW QUESTION # 431
Historically, which of the following vehicles is most often used to hide beneficial ownership?
- A. a professional association
- B. a charitable organization
- C. a limited liability partnership
- D. an offshore company
Answer: D
Explanation:
An offshore company is a legal entity that is incorporated or registered in a foreign jurisdiction, usually with low or no taxes, high confidentiality, and minimal regulation1. Offshore companies are often used to hide beneficial ownership, as they can create complex and opaque structures that obscure the identity and control of the real owners and beneficiaries of the assets or transactions involved2. Offshore companies can also use nominee directors and shareholders, trust and company service providers, and shell companies to further conceal beneficial ownership3. According to the web search results, offshore companies are among the most common vehicles for money laundering, tax evasion, corruption, and other illicit activities4 .
References:
* 1: What is an offshore company? - ACAMS
* 2: Guidance on Transparency and Beneficial Ownership - FATF
* 3: Concealment of Beneficial Ownership - FATF-Egmont Group
* 4: What's a Beneficial Owner and Why Does it Matter? - Dun & Bradstreet
* : The Panama Papers: Exposing the Rogue Offshore Finance Industry - ICIJ
NEW QUESTION # 432
In performing a risk analysis, which factor(s) should a financial institution review?
- A. Recent regulatory actions against financial institutions of comparable size
- B. Its customer base, location, products and services
- C. The adequacy and completeness of its STR filings
- D. The level of its gross revenue
Answer: B
Explanation:
these are the main factors that determine the inherent money laundering risk of a financial institution. The customer base, location, products and services of a financial institution affect the type, volume, and complexity of transactions that it processes, as well as the exposure to high-risk customers, jurisdictions, and activities12. A financial institution should review these factors regularly and conduct a comprehensive risk assessment to identify, measure, and mitigate its money laundering risk34.
Reference:
Anti Money Laundering Risk Assessment - Financial Crime Academy1
Anti-Money-Laundering (AML) Risk Approach Explained | Okta2
Anti-Money Laundering (AML) Risk Assessment | ACAMS4
2024 National Money Laundering Risk Assessment (NMLRA)5
NEW QUESTION # 433
What is the purpose of a Risk Appetite Statement (RAS) and its linkages while implementing organizational controls? (Select Two.)
- A. An RAS establishes a desired level of risk exposure in qualitative terms, covering all areas of compliance.
- B. An RAS formalizes a risk appetite statement from management and informs the Board of Directors on the risk assessment performed.
- C. An RAS sets limits for risk-taking by means of quantitative and qualitative metrics so that the business does not take up risk in excess of the organization's risk tolerance.
- D. An RAS establishes a management-approved policy that identifies the organization's risk tolerances with strategic objectives, risk profile, and risk management capabilities.
- E. An RAS sets limits in terms of residual risk and thus is strongly intertwined with the efficacy of the system of internal controls.
Answer: C,D
Explanation:
A Risk Appetite Statement (RAS) defines an institution's acceptable level of risk-taking and aligns AML and financial crime controls with organizational strategy.
Option C (Correct): An RAS sets clear limits for acceptable risk-taking, balancing risk and business opportunities.
Option D (Correct): The RAS is a management-approved document that integrates risk tolerance, compliance strategy, and business goals.
Why Other Options Are Incorrect:
Option A (Incorrect): An RAS is not just a reporting document; it actively shapes risk management decisions.
Option B (Incorrect): An RAS includes both qualitative and quantitative factors, but not just qualitative elements.
Option E (Incorrect): An RAS does not only define residual risk-it guides overall risk limits and policies.
How an RAS Strengthens AML Compliance:
Defines acceptable AML risk levels across business units.
Guides compliance teams on risk tolerance for high-risk customers.
Ensures alignment with FATF, regulatory expectations, and internal controls.
Reference:
Basel Committee's Principles for Risk Management
FATF Recommendation 1 (Risk-Based Approach to AML)
Wolfsberg Group Guidance on Risk Appetite and Compliance Frameworks
NEW QUESTION # 434
Which method to launder money through deposit-taking institutions is closely associated with international trade?
- A. Structuring cash deposits/withdrawals
- B. Forming a shell company
- C. Using Black Market Peso Exchange
- D. Investing in legitimate businesses with illicit funds
Answer: C
NEW QUESTION # 435
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. Arms and related materials embargo
- C. Asset freeze
- D. Export and import restrictions
Answer: B
Explanation:
Arms and related materials embargo is a type of sanction that prohibits the supply, sale, transfer, or export of arms and related materials to a targeted country, entity, or individual. This type of sanction is most likely to be used in order to avoid escalating violent conflicts and/or proliferation of weapons, as it aims to reduce the availability and access of weapons and ammunition that could fuel violence and instability. Arms and related materials embargo can also prevent the transfer of weapons of mass destruction and their delivery systems to non-state actors or rogue states. According to the UN, arms and related materials embargo is one of the most common and effective forms of sanctions that the Security Council imposes to address threats to international peace and security12.
1: Different types of sanctions - Consilium1
2: UN Sanctions and the Prevention of Conflict - United Nations University2 Reference: https://collections.unu.edu/eserv/UNU:6431/UNSanctionsandPreventionConflict-Aug-2017.pdf (3)
NEW QUESTION # 436
What is a tool governments and multi-national bodies can use to prevent the proliferation of weapons of mass destruction?
- A. Economic Sanctions
- B. Account Monitoring Order
- C. Mutual Legal Assistance Treaties
- D. Commission Rogatoire
Answer: A
Explanation:
Economic sanctions are a tool that governments and multi-national bodies can use to prevent the proliferation of weapons of mass destruction (WMDs) by imposing restrictions on trade, financial transactions, travel, or other activities with targeted countries, entities, or individuals that are involved or suspected of being involved in WMD programs. Economic sanctions aim to disrupt the supply chains, funding sources, and incentives for developing or acquiring WMDs, as well as to deter and punish any violations of international norms and obligations regarding WMDs. Economic sanctions can be imposed unilaterally by a country or multilaterally by a group of countries or an international organization, such as the United Nations, the European Union, or the Financial Action Task Force.
ACAMS CAMS Certification Video Training Course, Module 4: Preventing the Proliferation of Weapons of Mass Destruction, Lesson 4.2: Sanctions1 ACAMS CAMS Certification Study Guide, 6th Edition, Chapter 4: Preventing the Proliferation of Weapons of Mass Destruction, Section 4.2: Sanctions2
NEW QUESTION # 437
After an institution files an STR with regard to a particular account, a law enforcement agent requests the institution to keep the account open until advised otherwise by law enforcement.
What steps should the institution take?
- A. The institution should keep the account open only if doing so comports with the bank's own AML procedures
- B. The institution should request a written letter from the law enforcement (agency signed by an appropriate authorized signature)
- C. The institution should close the account in order not to be caught in the middle of a law enforcement investigation
- D. The institution should follow the request of the law enforcement agent and keep the account open
Answer: B
NEW QUESTION # 438
With which of the following should an anti-money laundering officer coordinate when implementing anew hire screening program?
- A. Local Financial Intelligence Unit
- B. Internal auditor
- C. Human resources
- D. Institution's regulator
Answer: C
Explanation:
An anti-money laundering officer should coordinate with human resources when implementing a new hire screening program, because human resources is responsible for managing the recruitment, hiring, and training of employees, as well as ensuring compliance with labor laws and regulations. A new hire screening program is a key component of an effective anti-money laundering (AML) program, as it helps to prevent the hiring of individuals who may pose a risk of facilitating money laundering, terrorist financing, or other financial crimes, or who may have a criminal or disciplinary history that could compromise the integrity of the institution. A new hire screening program should include background checks, verification of credentials and references, and assessment of skills and competencies relevant to the AML function. An anti-money laundering officer should work closely with human resources to establish the criteria, procedures, and documentation for the screening program, as well as to monitor its implementation and effectiveness.
Reference:
ACAMS CAMS Certification Video Training Course1, Module 4: Developing an AML Program, Lesson 4.2: Developing an AML Program ACAMS CAMS Study Guide, 6th Edition2, Chapter 4: Developing an AML Program, Section 4.2: Developing an AML Program, pp. 81-82 ACAMS CAMS Examination Preparation Seminar, 6th Edition3, Chapter 4: Developing an AML Program, Section 4.2: Developing an AML Program, Slide 20
NEW QUESTION # 439
A high-volume dealer of precious metals and stones in a high-risk jurisdiction is approached by a new customer interested in selling gold worth $200,000. The customer was referred by a longtime family friend of the dealer and provides no indication of background or business purpose for the sale. The dealer agrees to make the purchase based solely on the reference.
What is the money laundering red flag?
- A. The customer provides no background information or business purpose for the transaction
- B. The customer was referred by a longtime friend of the dealer
- C. The precious metals dealer is operating in a high-risk jurisdiction
- D. A new customer is selling gold worth $200,000 to a high volume dealer
Answer: A
Explanation:
This is when a customer or a transaction does not provide sufficient or credible information about their identity, source of funds, business activity, or purpose of the transaction. Lack of transparency can indicate that the customer or the transaction is trying to conceal the origin, ownership, or destination of illicit funds, or to evade regulatory scrutiny or reporting obligations. Lack of transparency is a common risk factor for money laundering and terrorist financing, especially in high-risk jurisdictions or sectors.
The other options are not necessarily red flags, although they may increase the risk or require further due diligence depending on the circumstances and the risk profile of the customers and countries involved. Option A describes a referral by a longtime friend of the dealer, which may be a legitimate source of trust or business relationship, but it does not substitute the need for proper customer identification and verification. Option B describes the location of the precious metals dealer, which may be a high-risk jurisdiction due to factors such as weak governance, corruption, crime, or sanctions, but it does not imply that the dealer or the customer is involved in money laundering. Option C describes the amount and nature of the transaction, which may be unusual or large, but it does not necessarily indicate money laundering, as long as the customer can provide a reasonable explanation and evidence for the source and use of funds.
Reference:
ACAMS CAMS Certification Video Training Course - 6th Edition1
Exam CAMS: Certified Anti-Money Laundering Specialist (the 6th edition)2 ACAMS CAMS Study Guide - 6th Edition, Chapter 3, pages 64-65
: https://www.acams.org/wp-content/uploads/2019/09/ACAMS-CAMS-Study-Guide-6th-Edition-Chapter-3.pdf
NEW QUESTION # 440
When investigating an AML event, which techniques would be used to investigate suspected mule accounts?
(Select Three.)
- A. Review the account history and determine if there are previous payments to charity accounts.
- B. Determine if the suspected accounts are being accessed by a common person, telephone number, or device.
- C. Contact the appropriate law enforcement agency and report the account activity.
- D. Reconcile the stated purpose of the account with actual transaction history and compare with peer groups.
- E. Establish the frequency with which the funds are moved in and out of the accounts.
- F. Submit a suspicious activity report to the national financial intelligence unit.
Answer: B,D,E
Explanation:
When investigating an AML event, the following techniques would be used to investigate suspected mule accounts:
A: Determine if the suspected accounts are being accessed by a common person, telephone number, or device.
This can help identify if the accounts are controlled by the same person or group, or if they are part of a larger network of mules. It can also help detect if the accounts are opened using synthetic identities or stolen credentials12.
B: Reconcile the stated purpose of the account with actual transaction history and compare with peer groups.
This can help assess if the account activity is consistent with the customer profile, risk rating, and expected behavior. It can also help identify anomalies, such as sudden changes in transaction patterns, large or frequent transfers, or transactions with high-risk jurisdictions or entities12.
E: Establish the frequency with which the funds are moved in and out of the accounts. This can help measure the velocity and volume of the funds flowing through the accounts, which can indicate if the accounts are used for layering or integration of illicit funds. It can also help detect if the accounts are used for smurfing, which is a technique of breaking down large amounts of cash into smaller deposits to avoid detection or reporting thresholds13.
References:
CAMS Study Guide (the 6th edition), page 1841
Mule accounts: how to track them down - Linkurious2
Money Mules - FBI3
NEW QUESTION # 441
the Financing of Terrorism (CFT)]
Which action should an FIU consider taking when it has information that might be useful to another FIU?
- A. Take no action until contacted by the other FIU
- B. Request approval from the Egmont Group prior to sharing the information with the other FIU
- C. In accordance with Wolfsberg guidelines, submit the information to the other FIU in written form
- D. Supply the information to the other FIU spontaneously as soon as the relevance of sharing the information is identified
Answer: D
Explanation:
According to the Egmont Group of Financial Intelligence Units, which is a network of over 160 FIUs that promotes international cooperation and information exchange, FIUs should share information with foreign FIUs spontaneously, without prior request, when they have reasonable grounds to believe that the information is relevant for the receiving FIU1. This principle is also reflected in the FATF Recommendation 40, which states that FIUs should exchange information with other FIUs, especially when this information concerns money laundering, predicate offences, or terrorist financing2. Spontaneous information sharing can enhance the effectiveness of FIUs, as it can help to identify new leads, trends, patterns, or typologies, as well as to prevent or disrupt criminal activities1.
The other options are not consistent with the best practices of FIU information sharing. For example:
* In accordance with Wolfsberg guidelines, submit the information to the other FIU in written form. The Wolfsberg Group is an association of 13 global banks that issues guidance and standards on anti-money laundering and counter-terrorist financing. However, the Wolfsberg guidelines are not binding for FIUs, and they do not specify the format or channel of informationexchange between FIUs3. Moreover, submitting information in written form may not be the most efficient or secure way of communication, as it may cause delays, errors, or breaches of confidentiality.
* Take no action until contacted by the other FIU. This option contradicts the principle of spontaneous information sharing, as it implies that the FIU with the relevant information will wait for a formal request from the other FIU, instead of proactively sharing the information. This may result in missed opportunities, inefficiencies, or failures in detecting or preventing money laundering or terrorist financing.
* Request approval from the Egmont Group prior to sharing the information with the other FIU. This option is unnecessary and impractical, as the Egmont Group does not have the authority or the capacity to approve or deny individual information requests or exchanges between FIUs. The Egmont Group provides a platform and a framework for FIU cooperation, but it does not interfere with the operational autonomy or the bilateral relations of its members4.
:
FATF Recommendation 40: Other Forms of International Co-operation
Egmont Group of Financial Intelligence Units Principles for Information Exchange Between Financial Intelligence Units Wolfsberg Group Egmont Group
NEW QUESTION # 442
Why are Money Services Business (MSBs) frequently accused of being high risk for money laundering?
- A. MSBs are subject to regulatory scrutiny which varies greatly from country to country
- B. MSBs generally charge lower commission rates than banks charge making them attractive to criminals
- C. A MSB should be used to hide money from a regulated entity
- D. MSBs can route funds to more high risk countries than banks
Answer: A
Explanation:
MSBs are frequently accused of being high risk for money laundering because they offer services that can facilitate the movement and conversion of illicit funds, such as currency exchange, money transmission, cheque cashing, and online payment. However, not all MSBs pose the same level of risk, and the degree of regulatory oversight and compliance requirements for MSBs may differ significantly depending on the jurisdiction they operate in. Some countries may have robust anti-money laundering (AML) regimes for MSBs, while others may have weak or inconsistent regulations, or even no regulations at all. This creates challenges and vulnerabilities for MSBs that operate across borders, as they may face different expectations and obligations from different authorities, or encounter gaps or loopholes in the AML framework. Moreover, some MSBs may operate informally or illegally, without registering or obtaining licenses from the relevant regulators, making them harder to detect and supervise. Therefore, MSBs are often perceived as high risk for money laundering, as they may be exploited by criminals who seek to take advantage of the regulatory discrepancies or deficiencies among countries.
References:
Understanding risks and taking action for money service businesses1
What Is A Money Services Business?2
Money Services Business (MSB) Information Center3
Money Services Business (MSB): Types, Examples, & AML Compliance4
NEW QUESTION # 443
What are some useful tools or methods in conducting an internal AML investigation? Choose 3 answers
- A. Interviewing knowledgeable employees of the institution
- B. Subpoenaing the owners of the relevant accounts
- C. Exploring leads through internet searches
- D. Reviewing documents, particularly of relevant accounts
Answer: A,C,D
NEW QUESTION # 444
A compliance officer learns from an Information Technology (IT) source of a potential new financial service being discussed by the new product approval committee.
What is the correct next course of action?
- A. Get as much information as possible from the source so that potential risks can be researched and a report prepared and presented to the head of marketing.
- B. Request that the new product approval committee include the compliance officer.
- C. Start initial research into potential risks but wait until notified that the service has been approved by the committee before initiating extensive research.
- D. Go to the board of directors and try to shut the new service down immediately because the committee did not communicate with the compliance officer.
Answer: C
NEW QUESTION # 445
Which three measures are contained in Financial Action Task Force 40 Recommendations for reporting suspicious activity? (Choose three.)
- A. The financial institution has grounds to believe the activity is related to terrorist financing.
- B. The financial institution has been contracted by law enforcement regarding the activity.
- C. The financial institution has contacted the account holder to determine the activity of the account.
- D. The financial institution has reasonable grounds to suspect the funds are proceeds of criminal activity.
- E. The activity should be reported promptly to the country's financial intelligence unit.
Answer: A,D,E
Explanation:
REPORTING OF SUSPICIOUS TRANSACTIONS [https://www.fatf-
gafi.org/media/fatf/documents/recommendations/pdfs/FATF%20Recommendations%202012.pdf] If a financial institution suspects or has reasonable grounds to suspect that funds are the proceeds of a criminal activity, or are related to terrorist financing, it should be required, by law, to report promptly its suspicions to the financial intelligence unit (FIU). According to the Financial Action Task Force's (FATF) Recommendation 20, a suspicious transaction report (STR) or a suspicious activity report (SAR) is filed by a financial institution or, by a concerned citizen, to the local Financial Intelligence Unit if they have reasonable grounds to believe that a transaction is related to criminal activity.
[https://aml-cft.net/library/suspicious-transaction-report-str-suspicious-activity-report-sar/]
NEW QUESTION # 446
A money remittance business will most likely attract money launderers because it
1.deals primarily in cash transactions.
2.engages in international transactions.
3. conducts transactions for walk-in customers.
4.does not have to comply with transaction reporting.
- 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
Explanation:
A money remittance business will most likely attract money launderers because it deals primarily in cash transactions, engages in international transactions, and conducts transactions for walk-in customers. These factors make money remittance businesses vulnerable to money laundering risks, such as:
Cash transactions: Cash is the preferred medium of exchange for money launderers, as it is anonymous, untraceable, and easily convertible. Money remittance businesses often deal with large amounts of cash, which can be used to place, layer, or integrate illicit funds into the financial system. Cash transactions also pose challenges for customer identification, record keeping, and transaction monitoring.
International transactions: Money remittance businesses facilitate cross-border transfers of funds, which can be used to move illicit funds from one jurisdiction to another, or to obscure the origin, destination, or purpose of the funds. International transactions also involve exposure to different legal, regulatory, and cultural environments, which may create inconsistencies or gaps in anti-money laundering (AML) and counter- terrorism financing (CTF) standards and practices.
Walk-in customers: Money remittance businesses often serve walk-in customers, who may not have an established relationship with the business, or who may use false or incomplete identification documents.
Walk-in customers also increase the volume and complexity of transactions, which may make it difficult to detect suspicious or unusual activity, or to apply risk-based due diligence measures.
ACAMS CAMS Certification Video Training Course1, Module 2: Money Laundering Risks and Methods, Lesson 2.3: Money Laundering Risks and Methods by Sector ACAMS CAMS Study Guide, 6th Edition2, Chapter 2: Money Laundering Risks and Methods, Section 2.3:
Money Laundering Risks and Methods by Sector, pp. 37-38
ACAMS CAMS Examination Preparation Seminar, 6th Edition3, Chapter 2: Money Laundering Risks and Methods, Section 2.3: Money Laundering Risks and Methods by Sector, Slide 16
NEW QUESTION # 447
......
The CAMS exam is administered by the Association of Certified Anti-Money Laundering Specialists (ACAMS), which is a global professional organization dedicated to advancing the AML profession through education, certification, and networking. ACAMS is recognized as the leading provider of AML training and certification, and its members include AML professionals from a wide range of industries, including banking, finance, law enforcement, and government.
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