[May-2024] ACAMS CAMS Exam Basic Questions With Answers [Q275-Q298]

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[May-2024] ACAMS CAMS Exam: Basic Questions With Answers

New 2024 Realistic Free ACAMS CAMS Exam Dump Questions and Answer

NEW QUESTION 275
One key aspect of the Office of Foreign Assets Control’s extraterritorial reach includes the blocking of certain non-United States initiated transactions for or through the United States (U.S.) for benefit of a restricted person or entity.
Under which three circumstances are U.S. banks required to block transactions? (Choose three.)

The transactions are to, or go through, a blocked entity

Those that are by, or on behalf of, a blocked individual or entity

Those that are by or on behalf of a blocked individual and a licensed entity

Those that are in connection with a transaction in which a blocked individual or entity has an interest

Those that are in connection with a transaction in which a blocked individual or entity has no interest

NEW QUESTION 276
A money transmitter’s nation-wide agent network remits funds to a country in Africa on behalf of an immigrant community based in the United States. A terrorist group is known to operate openly in this African country. In reviewing transaction records, the compliance officer detects a pattern where two customers together visit the same agent each week and remit the same amount of funds. $2,500, to the same recipient in the country in Africa.
What should alert the compliance officer to possible money laundering or terrorist financing activity by the two customers?

The customers always visit together.

The customers always visit the same agent.

The funds are being sent to the same recipient each week.

The dollar amount of each transaction is just below the record keeping threshold.

NEW QUESTION 277
You need to design the Butler chatbot solution to meet the technical requirements.
What is the best channel and pricing tier to use? More than one answer choice may achieve the goal. Select the BEST answer.

Standard channels that use the S1 pricing tier

Standard channels that use the Free pricing tier

Premium channels that use the Free pricing tier

Premium channels that use the S1 pricing tier

NEW QUESTION 278
Based on the USA PATRIOT Act, what action might the US take to demonstrate extraterritorial reach?

Send requests for information to a non-US based financial institution (FI)

Hand over potential penalties from the US to another government

Freeze U. S. accounts that contain funds from the non-US FI

Initiate a lawsuit in the home country of the non-US FI

NEW QUESTION 279
What should an effective anti-money laundering training program include?

Computer-based modules titles differently for each job description in the bank

Random testing of employees to ensure proper understanding of policies

Real-life money laundering examples

Lists of anti-money laundering regulations

NEW QUESTION 280
Which is true about Financial Action Task Force (FATF)-Style Regional Bodies (FSRBs)?

FSRBs set standards for their member countries that supplement FATF’s standards.

Tools used by FRSBs include training measures and mutual evaluations of its members.

AFATF-member country cannot also be a member of an FSRB.

To be a member of an FSRB, a country must have enacted AML and Anti-Terrorist Financing laws.

NEW QUESTION 281
According to Basel Committee guidelines, which level of the organization should determine whether or not to enter business relationships with higher risk customers?

First-level management

Senior management

Account opening staff

Middle management

NEW QUESTION 282
What is the goal of the Egmont Group in providing a forum for Financial Intelligence Units (FIUs) around the world?

To improve international laws to combat money laundering and the financing of terrorism and foster the implementation of domestic programs.

To provide a forum for FIUs to improve cooperation in the fight against money laundering and the financing of terrorism and to foster the implementation of domestic programs in this field.

To improve communication with law enforcement in the fight against money laundering and the financing of terrorism and to foster the implementation of domestic programs in this field.

To improve cooperation with state and federal governments in the fight against money laundering and the financing of terrorism and to foster the implementation of domestic programs in this field.

NEW QUESTION 283
In which situation can money laundering adversely affect a country’s currencies and interest rates due to launderers investing dirty funds?

They invest in high risk ventures with high rates of return

They invest in legitimate companies as a way of making their funds appear to be legitimate

They invest in shell companies in secrecy havens that intentionally manipulate rates

They invest in a way to hide funds rather than get a high rate of return

NEW QUESTION 284
When a bank performs a risk assessment, what areas should an institution focus on?

The type and location of the institution’s clients

The nature and breadth of the services and products the institution provides

The geographic locations where the institution does business

The amount of the money the institution earns prior to taxes

A bank’s risk assessment is a process of identifying, measuring, and mitigating the potential risks that the bank faces in its operations, products, services, and customers. According to the ACAMS Study Guide, a bank should focus on the following areas when performing a risk assessment1:
The type and location of the institution’s clients. This involves analyzing the customer base, the types of accounts and transactions, the source and destination of funds, the level of due diligence and verification, and the risk profile of the customers. For example, a bank should consider whether its customers are individuals or entities, domestic or foreign, politically exposed persons, high-net-worth individuals, non-profit organizations, or cash-intensive businesses. The location of the customers may also indicate the level of exposure to money laundering, terrorist financing, sanctions, or tax evasion risks.
The nature and breadth of the services and products the institution provides. This involves evaluating the range and complexity of the products and services offered by the bank, the delivery channels, the payment methods, and the innovation and technology involved. For example, a bank should consider whether it offers wire transfers, correspondent banking, trade finance, private banking, trust and fiduciary services, prepaid cards, mobile banking, or cryptocurrency services. The nature and breadth of the services and products may also affect the level of transparency, traceability, and compliance of the transactions.
The geographic locations where the institution does business. This involves assessing the jurisdictions where the bank operates, where its customers reside, where its counterparties are located, and where the funds flow. For example, a bank should consider whether it has branches, subsidiaries, or affiliates in high-risk countries, whether it serves customers from high-risk countries, whether it engages in cross-border transactions, and whether it complies with the local laws and regulations of the countries where it does business. The geographic locations where the institution does business may also influence the level of exposure to political, legal, regulatory, or reputational risks.
References:
1: ACAMS Study Guide, Chapter 2: Risk Assessments, 1

NEW QUESTION 285
In 2004, Consolidated KYC Risk Management was issued by the Basel Committee on Banking Supervision (BCBS). What is a key message in this document?

KYC Risk Management required a yearly consolidation effort

KYC Risk Management means as established decentralized process for promulgating policies andprocedures

Policies and procedures should be designed not merely to comply strictly with all relevant lawsand regulations

Consolidated KYC risk management for a group is critical and trumps jurisdictional rules hat limitinformation sharing

NEW QUESTION 286
FATF recommends the incorporation of some measures in customer due diligence (CDD) programs including:

conducting the risk assessment of products and services.

conducting ongoing due diligence on the business relationship and monitoring of transactions.

identifying the products and services and their suitability to customers.

identifying the number of beneficial owners without the verification of their true identity.

NEW QUESTION 287
Which three stages of money laundering are on-line banking vulnerable to?

Placement

Layering

Integration

Structuring

NEW QUESTION 288
An anti-money laundering officer is conducting employee reviews.
Which employee action warrants enhanced due diligence?

The teller reviews customer profiles and makes notations of personal information to reportedly become familiar with bank customers.

The private banker has recently taken long vacations which caused staff members to fall behind in their work to help cover bank duties.

The branch manager reviews the daily hold report and releases holds on non-cash items once the bank receives credit from the paying bank.

The bank chief executive officer lives in a lavish home and has requested the board to approve a membership payment at an exclusive country club.

NEW QUESTION 289
Which is a characteristic of the Financial Action Task Force (FATF) 40 recommendations?

They enable FATF’s active engagement in law enforcement matters, investigations, or prosecutions.

They are automatically transposed into local law across the EU member states and the US.

They provide a list of mandatory requirements for an effective AML regulatory framework.

They comprise global standards for countering money laundering, recognized by government bodies across the world.

NEW QUESTION 290
A client is a wholesale auto business that operates as a used car lot. The client regularly ships vehicles internationally. In a four-month period, the client received wires totaling $ 1,250,000 from a dealer in Benin in West AfricA. All wires originated from Benin and were in increments of $50,000.
Account debits made to the account were payable to various transport companies. All incoming checks reference various vehicles purchased. Dock shipping receipts produced by the client to support account activity identify the vehicles but cannot easily be tied to the wires receives.
What is the suspicious behavior?

The dock shipping receipts match the vehicles

Vehicles are regularly shipped internationally

Wires received are in large, even dollar amounts

Account debits are payable to transport companies

NEW QUESTION 291
Which three measures are contained in Financial Action Task Force 40 Recommendations for reporting suspicious activity? (Choose three.)

The activity should be reported promptly to the country’s financial intelligence unit.

The financial institution has been contracted by law enforcement regarding the activity.

The financial institution has grounds to believe the activity is related to terrorist financing.

The financial institution has contacted the account holder to determine the activity of the account.

The financial institution has reasonable grounds to suspect the funds are proceeds of criminal activity.

NEW QUESTION 292
A U.K. real estate agent has three foreign clients interested in purchasing an apartment building, valued at E30 million, in the outskirts of London as an investment property. The clients are not willing to have their names provided to the bank. The clients want to purchase to be made in the names of three private companies for privacy reasons. The plan is to wire the funds into an account held in the name of another private company at a bank in London.
Which red flag should stop the agent from discussing this potential purchase further?

The clients are foreign

The clients have the funds necessary to fund a E30 million purchase

The clients are not willing to have their names provided to the bank

The clients want to purchase to be made in the names of the private companies

NEW QUESTION 293
Under the Wolfsberg Correspondent Banking Principles, which action is considered an enhanced due diligence obligation to correspondent banking clients that present greater risks?

Conducting reviews on all high-risk relationships

An evaluation done by the compliance officer in charge of the account

Approval of a high-risk relationship by a senior management committee

Ongoing monitoring of clients located in tax haven countries

NEW QUESTION 294
Which step should be taken to understand the types of financial institutions to whom the services are being offered when a correspondent bank permits “nested” relationships according to the Wolfsberg Group?

Review peer-group clients by risk category

Understand the type and volume of accounts serviced

Evaluate the distribution of downstream correspondents and identify any direct or indirect issues

Obtain independent audits or examination reports for “nested” relationships to determine risk levels

NEW QUESTION 295
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.
Which of the following should the compliance officer do next?

Investigate these unusual transactions further.

Contact the local Financial Intelligence Unit for advice.

File a suspicious transaction report with the competent authorities.

Document reasons for not filing a suspicious transaction report.

NEW QUESTION 296
An anti-money laundering specialist has just developed and implemented an anti-money laundering program.
What is the most effective resource to evaluate the effectiveness of the program?

The regulator authorities

A member of senior management

The anti-money laundering specialist

A qualified independent party/auditor

NEW QUESTION 297
A non-U.S. bank asks its U.S. correspondent whether there is risk of having funds seized in their correspondent account if a customer is involved in a predicate offense.The correspondent bank’s reply should be,

“No, only U.S. accounts for U.S. citizens can be seized and forfeited by the competent authority.”

“No, only correspondent accounts of U.S. banks can be seized and forfeited by govern-ment agencies.”

“Yes, if it is suspected that money laundering has occurred solely in the U.S.”

“Yes, also if the customer’s account is used in a country other than the U.S. by suspected money launderers.”

NEW QUESTION 298
How does the Financial Action Task Force (FATF) communicate its findings regarding jurisdictions with strategic anti-money laundering / Counter Financing of Terrorism deficiencies?

By issuing documentation to the private sector

By issuing two formal documents three times per year

By issuing informal communication to FATF members

By issuing four formal documents to the deficient jurisdictions

The CAMS certification is ideal for AML professionals, regulatory and law enforcement personnel, risk management professionals, and audit and compliance specialists. It is essential for those who want to enhance their career prospects in the AML field or want to demonstrate their expertise and knowledge of the AML compliance regime to their employers or clients.

ACAMS CAMS Certification provides professionals with several benefits, including enhanced credibility, marketability, and earning potential. Certified professionals are recognized as experts in the field of AML/CFT and are highly sought after by employers. Certified Anti-Money Laundering Specialists certification also provides professionals with access to a network of peers and resources, including continuing education programs and professional development opportunities.

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[May-2024] ACAMS CAMS Exam Basic Questions With Answers [Q275-Q298]

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