ACAMS CAMS Dumps Updated Nov 09, 2023 WIith 512 Questions
View All CAMS Actual Free Exam Questions Nov 09, 2023 Updated
ACAMS CAMS certification is recognized globally and is often required for professionals working in the AML field. Certified Anti-Money Laundering Specialists certification demonstrates a high level of expertise and commitment to the fight against financial crime. It is also a valuable asset for individuals seeking career advancement in AML-related roles.
The CAMS exam is designed to test the candidates' knowledge of AML laws, regulations, and best practices, including customer due diligence, suspicious activity reporting, sanctions screening, risk assessment, and compliance monitoring. CAMS exam consists of 120 multiple-choice questions, and candidates have four hours to complete it. The passing score for the exam is 75%.
NEW QUESTION # 85
Trusts established in certain offshore jurisdictions make good vehicles to lay under money for which of the following reasons?
- A. Offshore jurisdictions are unfamiliar with trust.
- B. Trusts may hold assets of significant size.
- C. Trusts are typically set up to minimize taxes.
- D. Names of the settlor and beneficiaries are into publicly available.
Answer: C
NEW QUESTION # 86
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. The bank allows cash deposits
- B. Large cash deposits are from a high-risk jurisdiction
- C. Wire transfers are to high-risk jurisdiction
- D. The client resides in a high-risk jurisdiction
Answer: B,C
Explanation:
Reference: https://aml-cft.net/library/banks-amlcft-red-flags/
NEW QUESTION # 87
Which two channels can be utilized during a cross-border money laundering investigation to assist in gathering information according to Financial Action Task Force? (Choose two.)
- A. Submitting only formal requests for information to a financial intelligence unit
- B. Exchanging information between national law enforcement agencies
- C. Contacting existing liaison officers in the foreign jurisdiction
- D. Contacting the potential suspect or their family members to request information
Answer: B,C
NEW QUESTION # 88
An institution receives a request for credit from a local company that has been a client for many years. The information provided by the company indicates that its assets have increased substantially with the addition of several new subsidiaries. Further research performed by the institution indicates the new subsidiaries are recently created shell companies.
Could this indicate potential money laundering?
- A. No, the company has been a client for many years.
- B. Yes, the shell companies could have been created to hide beneficial ownership.
- C. No, it is normal for a business to diversify by creating shell companies.
- D. Yes, shell companies are typically created to manage tax liabilities.
Answer: B
NEW QUESTION # 89
Which statement identifies one of the duties of a government Financial Intelligence Unit?
- A. It administers and enforces economic and trade sanctions based on a government's foreign policy and national security goals.
- B. It serves as the central agency for the receipt of disclosures filed by reporting entities.
- C. It prosecutes suspected money launderers and terrorist financiers based on financial institution suspicious transaction report filings.
- D. It supervises and regulates banking institutions to ensure the safety and soundness of the nation's banking and financial system.
Answer: B
NEW QUESTION # 90
In May 2002, the Wolfsberg Principles on Private Banking were revised and included a section that prohibits the use of internal non-client accounts in a manner that would prevent officials from appropriate monitoring movements of funds or keep clients from being linked to the movement of funds on their behalf.
What is another name for these internal, non-client accounts?
- A. Correspondent accounts
- B. Pay through accounts
- C. Trust accounts
- D. Concentration accounts
Answer: D
NEW QUESTION # 91
What is the main role of the Egmont Group in combating money laundering and terrorist financing?
- A. To require that all countries participate in a global repository for the sharing of information
- B. To establish regulations that countries must use when establishing their own FIUs
- C. To find ways that FIUs can better cooperate amongst themselves and exchange information
- D. To create standards that countries can use when drafting laws to combat money laundering and terrorist financing
Answer: C
NEW QUESTION # 92
A comprehensive set of risk-based guidelines for maintaining business relationships is being developed.
Which situation indicates that the institution should terminate the relationship with a client?
- A. The client does business in countries with active terrorist organizations.
- B. The client exceeds the criteria of an acceptable risk model created by another institution that is not similar in size and complexity.
- C. The client conducts international financial transactions exceeding U.S. $500 million.
- D. The client exceeds the criteria of an acceptable risk model created by the institution and does not perform acceptable remedial actions.
Answer: D
Explanation:
Explanation/Reference: http://www.fatf-gafi.org/media/fatf/documents/reports/Risk-Based-Approach-Banking-Sector.pdf
NEW QUESTION # 93
Since its last regulatory examination, a financial institution has aggressively grown by adding profitable new products and services. The institution has not historically received regulatory criticism regarding its anti-money laundering compliance program. However, a recent regulatory examination cited significant deficiencies in the anti-money laundering program that were attributed primarily to the lack of oversight by the institution's leadership in implementing adequate controls over the new products and services.
Which area of international control should leadership first address to correct the weaknesses in the program?
- A. Money laundering risk assessment
- B. Anti-money laundering compliance staff
- C. Anti-money laundering policy
- D. Anti-money laundering training
Answer: A
Explanation:
Explanation/Reference:
NEW QUESTION # 94
What action should a bank CEO's assistant take when the bank CEO expenses large sums of money to a charitable organization run by the bank CEO's direct family member?
- A. Investigate the charitable organization's relationship with the bank CEO.
- B. Report the actions to the Executive Board of the bank.
- C. Submit the concern anonymously to the bank's internal Compliance Hotline.
- D. Meet with the bank CEO to learn why the donations are being made.
Answer: A
NEW QUESTION # 95
Enhanced due diligence (EDD) may be bypassed for which situation?
- A. On-boarding a casino headquartered in the EU or US that is part of an international hotel chain, provides less than 50% of overall revenue and that fully complies with group-wide policies and procedures.
- B. On-boarding a branch or majority-owned subsidiary of an EU or US FI located in a high-risk third country that fully complies with group-wide policies and procedures.
- C. On-boarding a reputable Politically Exposed Person (PEP) from the EU onto the wealth management arm of a US financial institution (FI).
- D. On-boarding a subsidiary in a high-risk country with a complex ownership structure of a long-standing and reputable customer based in the EU or US.
Answer: B
Explanation:
Reference: https://www.trulioo.com/blog/enhanced-due-diligence
NEW QUESTION # 96
What is an example of the integration stage of money laundering involving a bank or another deposit-taking institution?
- A. Depositing illicit funds into an account set up for a front company
- B. Directing third parties to exchange illicit cash for negotiable instruments
- C. Wiring illicit funds from an account at one bank to an account at another bank
- D. Using illicit funds that had previously been deposited to purchase a luxury vehicle
Answer: D
Explanation:
Reference: https://www.moneylaundering.ca/public/law/3_stages_ML.php
NEW QUESTION # 97
Which are social/economic consequences of money laundering? (Choose two.)
- A. Weakening of the country's infrastructure
- B. Weakening financial institutions
- C. Civil war
- D. Increase in corruption and organized crime
- E. Increase in tax revenue
Answer: B,D
Explanation:
Reference:
https://www.fatf-gafi.org/faq/moneylaundering/#:~:text=As%20for%20the%20potential%20negative,and%20ex
NEW QUESTION # 98
A foreign bank operating under an offshore license wants to open a correspondent account with a United States (U.S.) bank. The foreign bank plans to provide payable through account services to some of its customers.
What must the foreign bank provide to the U.S. bank under the USA PATRIOT Act?
- A. A list of politically exposed persons who are owners of the correspondent bank
- B. A list of anti-money laundering training records for the financial institution employees monitoring payable through account transactions
- C. A list of account holders at the financial institution who will use the payable through account
- D. The person in the United States who can receive service of legal process for the correspondent bank
Answer: C
NEW QUESTION # 99
Bank A is located in Country A.
A wire transfer from Bank B located in Country B is processes by Bank A, where the funds are being moved to a customer at Bank C located in Country C.
The wire transfer is deemed suspicious by Bank A.
Who should Bank A file a suspicious transaction report on?
- A. Bank C in Country C
- B. Bank B in Country A
- C. The transaction in Country A
- D. The transaction in Country B
Answer: C
NEW QUESTION # 100
Which three elements should be considered in an institution's enhanced due diligence process to assure itself that it has secured sufficient understanding of its higher risk respondent bank customers according to the Wolfsberg Principles on Correspondent Banking?
- A. A risk-based determination as to whether or not the respondent is a shell bank
- B. Whether a Politically Exposed Person (PEP) has an interest or management role in the respondent
- C. The quality of the respondent's AML and client identification controls
- D. The sources of wealth for all significant ownership interests
Answer: A,C,D
NEW QUESTION # 101
What does the Egmont Group's support for its members include?
- A. Issuing due diligence models for financial institutions
- B. Expanding and systematizing international cooperation in the reciprocal exchange of information
- C. Expanding the ability of FIUs to enforce laws and exchange information globally to combat money laundering and terrorist financing
- D. Issuing strategic products for law enforcement agencies and FIUs on topics of international interest
Answer: B
Explanation:
Explanation/Reference: https://egmontgroup.org/en/content/membership
NEW QUESTION # 102
Which three statements are true regarding the extraterritorial reach of laws and legislation of the U.S.?
- A. Economic and trade sanctions by OFAC may pose extraterritorial risks for financial institutions and businesses outside the U.S.
- B. The criminal anti-money laundering law can apply to transactions that occur partially overseas
- C. The defendant does not need to know the funds came from an illegal activity under state, federal or foreign law
- D. The extraterritorial reach covers all transactions throughout the global economy
Answer: A,B,C
Explanation:
Explanation/Reference:
NEW QUESTION # 103
Which does the USA PATRIOT Act stipulate for foreign banks concerning correspondent banking?
- A. A subpoena issued to a foreign bank that maintains a correspondent account in the US can require the bank to submit any records except for records in a foreign jurisdiction.
- B. The US federal banking agency can require foreign banks to produce records or information related to any account opened in the US or other countries.
- C. Illicit funds deposited with a foreign bank can be seized by the US government by confiscating the same amount of funds deposited in a correspondent account in the US.
- D. US banks that maintain correspondent accounts for foreign banks must keep identification records of foreign bank owners with 50% or more ownership in the bank
Answer: D
Explanation:
Explanation
The USA PATRIOT Act stipulates that US banks that maintain correspondent accounts for foreign banks must keep identification records of foreign bank owners with 50% or more ownership in the bank. This ensures that the US government can track the flow of funds through the correspondent accounts and prevent money laundering and terrorist financing. Additionally, the US federal banking agency can require foreign banks to produce records or information related to any account opened in the US or other countries. This allows the agency to monitor the activities of foreign banks and ensure compliance with US regulations.
NEW QUESTION # 104
A client has retained a lawyer to create a financial holding company. The lawyer resides in Europe. The client provides all requested documentation to the lawyer. However, the lawyer becomes suspicious that the customer is engaged in criminal activity and intends to use the financial holding company for money laundering purposes. Which of the following should an anti-money laundering specialist recommend according to the European Union Money Laundering Directives?
- A. Freeze the client's assets so that all records can be turned over to the competent authorities.
- B. There is no need to file a suspicious transaction report, as this activity is covered by attorney-client privilege.
- C. Report the activity as suspicious to the competent authority because the lawyer is covered by these directives.
- D. Consult with the competent authority to receive advice on how to handle the transaction.
Answer: C
NEW QUESTION # 105
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