Released ACAMS CAMS Updated Questions PDF
CAMS Dumps and Practice Test (617 Exam Questions)
NEW QUESTION # 295
Which three entities does the Third European Union Money Laundering Directive apply to?
- A. Casinos
- B. Financial Institutions
- C. Real Estate Agents
- D. Defense Attorneys
Answer: A,B,C
Explanation:
The Third European Union Money Laundering Directive (3MLD) is a legal framework that aims to prevent the use of the financial system for the purposes of money laundering and terrorist financing. It was adopted in
2005 and repealed by the Fourth European Union Money Laundering Directive (4MLD) in 2015. The 3MLD applies to a range of entities that are considered to be exposed to the risk of money laundering and terrorist financing, such as:
Financial institutions, which include credit institutions, financial intermediaries, insurance companies, investment firms, and payment service providers.
Casinos, which include both online and offline gambling services that involve wagering a stake with monetary value.
Real estate agents, which include both natural and legal persons that act as intermediaries in the buying and selling of real property or rights over it.
The 3MLD requires these entities to implement a number of measures to prevent and detect money laundering and terrorist financing, such as:
Conducting customer due diligence, which involves identifying and verifying the customer and the beneficial owner, understanding the purpose and nature of the business relationship, and applying enhanced or simplified measures depending on the level of risk.
Keeping records of customer and transaction data for at least five years after the end of the business relationship or the execution of the transaction.
Reporting suspicious transactions or activities to the competent authorities without delay and without tipping off the customer.
Establishing internal policies, procedures, and controls to ensure compliance with the 3MLD, and providing adequate training and awareness to staff.
Cooperating with the relevant supervisory and regulatory authorities and financial intelligence units.
The 3MLD does not apply to defense attorneys, as they are not considered to be obliged entities under the directive. However, the 3MLD does apply to other legal professionals, such as notaries, lawyers, and accountants, when they perform certain activities on behalf of their clients, such as:
Buying and selling of real property or business entities
Managing of client money, securities, or other assets
Opening or managing bank, savings, or securities accounts
Organizing contributions for the creation, operation, or management of companies Creating, operating, or managing trusts, companies, foundations, or similar structures References:
THE THIRD EU DIRECTIVE ON MONEY LAUNDERING AND TERRORIST FINANCING, page
11-12
Anti-money laundering and countering the financing of terrorism legislative package, page 1 CAMS Study Guide - 6th Edition, Chapter 1, Section 1.2, page 11 V
NEW QUESTION # 296
According to the Financial Action Task Force 40 Recommendations, simplified customer due diligence or reduced measures could be acceptable for which of the following types of products or transactions?
1. Life insurance policies where the annual premium is no more than USD/EUR 1,000 or a single premium of no more than USD/EUR 2,500.
2. Insurance policies for pension schemes if there is no surrender clause and the policy cannot be used as collateral.
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4. Trusts where the settlor, trustee and beneficiaries are identified and the shares are in bearer form.
- A. 2, 3, and 4 only
- B. 1, 2, and 3 only
- C. 1, 2, and 4 only
- D. 1, 3, and 4 only
Answer: C
NEW QUESTION # 297
Which situations would require a financial institution (FI) to update its ML/TF risk assessment? (Choose two.)
- A. When the AML compliance team hires new employees
- B. When the institution faces a merger or acquisition
- C. When new products, services or customer types are introduced
- D. When opening a sales point in a new location in the same city
- E. When new board members are elected
Answer: B,D
Explanation:
Reference: https://www.fatf-gafi.org/media/fatf/content/images/National_ML_TF_Risk_Assessment.pdf
NEW QUESTION # 298
Which element is generally required of all anti-money laundering programs?
- A. A qualified compliance officer to manage the program
- B. An enhanced due diligence program for all new customers
- C. A computer-based suspicious activity monitoring system
- D. Annual in-person AML training for all employees
Answer: A
Explanation:
a qualified compliance officer is a mandatory element of all anti-money laundering programs, regardless of the type or size of the financial institution. The compliance officer is responsible for developing, implementing, and overseeing the anti-money laundering program, ensuring its compliance with the relevant laws and regulations, and reporting any suspicious activity to the appropriate authorities12. The compliance officer should have sufficient authority, resources, and expertise to perform these duties effectively.
References:
Anti-Money Laundering (AML) | FINRA.org1
Anti-Money Laundering Program and Suspicious Activity Reporting Requirements For Insurance Companies Frequently Asked Questions | FinCEN.gov2
NEW QUESTION # 299
Enhanced due diligence (EDD) may be bypassed for which situation?
- A. 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.
- B. 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.
- C. 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.
- D. On-boarding a reputable Politically Exposed Person (PEP) from the EU onto the wealth management arm of a US financial institution (FI).
Answer: A
Explanation:
Reference: https://www.trulioo.com/blog/enhanced-due-diligence
NEW QUESTION # 300
A money remittance business will most likely attract money launderers because it:
- A. does not have to comply with transaction reporting.
- B. engages in international transactions.
- C. deals primarily in cash transactions.
- D. conducts transactions for walk-in customers.
Answer: B,C,D
NEW QUESTION # 301
Which of the following customers require the most enhanced due diligence?
- A. A resident of a non-cooperative jurisdiction.
- B. A politically exposed person.
- C. An international business corporation.
- D. An established customer.
Answer: B
NEW QUESTION # 302
How does the Asian/Pacific Financial Action Task Force <FATF>-Style Regional Body help its members implement recommendations from the FATF? (Select Two.)
- A. Promotes laws that allow judicial challenges to seizure orders by an administrative body
- B. Encourages cooperative AML efforts in the region
- C. Requires members to maintain lists of regional money laundering and terrorists financing issues relevant to their region
- D. Facilitates the adoption and implementation of internationally accepted AMI measures by member jurisdictions
- E. Endorses regulations that define money laundering based on the model laws issued by the respective member states
Answer: B,D
Explanation:
The Asian/Pacific Financial Action Task Force-Style Regional Body (APG) helps its members implement recommendations from the FATF by facilitating the adoption and implementation of internationally accepted AML measures by member jurisdictions (CAMS Manual, 6th Edition, Page 22). The APG also encourages cooperative AML efforts in the region, which can include information-sharing and mutual evaluations to assess member compliance with FATF recommendations (CAMS Manual, 6th Edition, Page 25). Therefore, options C and D are the correct answers.
NEW QUESTION # 303
A SAR/STR should be filed when the accountable institution identifies that:
- A. an alert is generated by a transaction monitoring system.
- B. a customer makes a cash deposit in round dollars.
- C. cash transactions have values which avoid reporting thresholds.
- D. an employee is not clearing alerts in a timely manner.
Answer: C
Explanation:
According to the ACAMS CAMS Certification Study Guide (6th edition), one of the red flags for money laundering is the structuring of cash transactions to avoid reporting thresholds. Structuring is the practice of breaking down large amounts of cash into smaller deposits or withdrawals that are below the reporting threshold of $10,000 in the United States or equivalent amounts in other jurisdictions. Structuring is done to evade the detection and reporting of cash transactions by financial institutions to the authorities. Therefore, when an accountable institution identifies that a customer is engaging in structuring or other forms of cash transaction manipulation, it should file a SAR/STR to report the suspicious activity1 References: 1: ACAMS CAMS Certification Study Guide (6th edition), page 64.
Reference:
https://www.fdic.gov/regulations/examinations/supervisory/insights/siwin07/article03_connecting.html
NEW QUESTION # 304
An audit completed the previous week revealed that a private banking customer submitted incomplete documents when establishing an account earlier m the year. The customer received weekly electronic fund transfers from a narcotic-producing jurisdiction. While the relationship manager who opened the account is on leave for 5 weeks, the customer requests that the institution remit a substantial sum to a country that represents a high risk of money laundering. The relationship manager is a friend of the anti-money laundering specialist.
What should the anti-money laundering officer do first?
- A. Suspend the transfer until the relationship manager returns
- B. File a suspicious transaction report with the competent authority
- C. Investigate the transfer of funds
- D. Postpone the follow-up on the audit finding
Answer: B
NEW QUESTION # 305
Which are primary purposes of Financial Action Task Force {FATF)-Style Regional Bodies? (Select Two.)
- A. Providing expertise and input in FATF policy-making
- B. Imposing special measures for non-cooperative jurisdictions
- C. Promoting effective implementation of FATF recommendations
- D. Acting as a prudential regulatory body for financial institutions
- E. Providing due diligence for foreign correspondent banks
Answer: A,C
Explanation:
Explanation
The primary purposes of Financial Action Task Force (FATF)-Style Regional Bodies are to promote effective implementation of FATF recommendations and to provide expertise and input in FATF policy-making.
(CAMS Manual, 6th Edition, Page 180)
NEW QUESTION # 306
Which action should an FIU consider taking when it has information that might be useful to another FIU?
- A. In accordance with Wolfsberg guidelines, submit the information to the other FIU in written form
- B. Request approval from the Egmont Group prior to sharing the information with the other FIU
- C. Take no action until contacted by the other FIU
- D. Supply the information to the other FIU spontaneously as soon as the relevance of sharing the information is identified
Answer: D
NEW QUESTION # 307
A local law enforcement officer notifies the bank compliance officer that he is working on an insurance fraud scheme that appears to be running transactions using the account of a bank employee. The law enforcement officer refers to a kiting suspicious transaction report filed by the compliance officer and requests further information.
What action should the compliance officer take?
- A. Call the employee and demand an explanation
- B. Allow access to the bank's documents immediately
- C. Inform the board of directors
- D. Provide the information to the law enforcement in response to a formal written request
Answer: D
NEW QUESTION # 308
What is true regarding disclosure to a law enforcement agency by a financial institution of the supporting documentation for a suspicious transaction report?
- A. Documentation must be provided as quickly as possible using email
- B. Confirm that the request originated from a representative of the law enforcement agency
- C. A copy of all the documentation released must also be provided to the account holder's attorney
- D. The financial institution may notify the account holder of the request
Answer: B
Explanation:
Reference: https://www.sec.gov/about/offices/ocie/aml2007/fin-2007-g003.pdf
NEW QUESTION # 309
What is the goal of the Egmont Group in providing a forum for Financial Intelligence Units (FIUs) around the world?
- A. 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.
- B. 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.
- C. 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.
- D. To improve international laws to combat money laundering and the financing of terrorism and foster the implementation of domestic programs.
Answer: C
Explanation:
According to the web search results, the Egmont Group is a united body of 170 Financial Intelligence Units (FIUs) that provides a platform for FIUs to securely exchange expertise and financial intelligence to combat money laundering, terrorist financing, and associated predicate offences12. The goal of the Egmont Group is to provide a forum for FIUs around the world to improve support to their respective governments in the fight against money laundering, terrorist financing, and other financial crimes345. The other options are not correct because they either do not capture the full scope of the Egmont Group's activities, or they are not the primary focus of the Egmont Group.
References: https://egmontgroup.org/
https://2009-2017.state.gov/j/inl/rls/nrcrpt/2015/vol2/239473.htm\
Reference: https://en.wikipedia.org/wiki/Egmont_Group_of_Financial_Intelligence_Units
NEW QUESTION # 310
Under the USA PATRIOT Act, in which scenario would the US not have jurisdiction?
- A. Shell banks operating in foreign jurisdictions
- B. Foreign bank with a US correspondent account
- C. Foreign branch of a bank located in the US
- D. US bank subsidiaries located in foreign jurisdictions
Answer: A
NEW QUESTION # 311
You are developing an application that will perform optical character recognition of photos of medical logbooks.
You need to recommend a solution to validate the data against a validated set of records.
Which service should you include in the recommendation?
- A. Bing Autosuggest
- B. Text Analytics
- C. Azure Data Catalog
- D. Master Data Services (MDS) in Microsoft SQL Server
Answer: D
Explanation:
Explanation/Reference:
References:
https://docs.microsoft.com/en-us/sql/master-data-services/validation-master-data-services?view=sql-server-
2017
NEW QUESTION # 312
Why do governments and multi-national bodies impose economic sanctions?
- A. To enforce foreign policy objectives
- B. To impede kleptocracy
- C. To combat an imminent terrorist threat
- D. To prevent fraudulent international trade transactions
Answer: A
Explanation:
Explanation/Reference: https://en.wikipedia.org/wiki/Economic_sanctions
NEW QUESTION # 313
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. The transaction in Country B
- B. Bank C in Country C
- C. Bank B in Country A
- D. The transaction in Country A
Answer: D
NEW QUESTION # 314
Which statement about a multinational institution's ability to fully investigate unusual activity in all its foreign operations is correct?
- A. Certain account documents may be stored only in local language which will prohibit a global assessment.
- B. Local privacy and data protection laws may prevent an affiliate from sharing information.
- C. The institution should consult with the customer and request permission to conduct a full investigation into all the accounts.
- D. Enterprise-wide compliance oversight rules issued in the global institution's headquarters country will override any local limitations in other countries.
Answer: D
NEW QUESTION # 315
When assessing and managing money laundering risks while operating in foreign jurisdictions different from that of the head office, an effective AML monitoring program should:
- A. be tailored to the higher of standards between the jurisdictions.
- B. conform to the foreign jurisdiction policies to align with the head office policies.
- C. provide all foreign jurisdiction reports to the head office for approval.
- D. be consistent with the head office audits.
Answer: B
Explanation:
When assessing and managing money laundering risks while operating in foreign jurisdictions different from that of the head office, an effective AML monitoring program should conform to the foreign jurisdiction policies to align with the head office policies. This ensures that the organization's AML/CFT risk management remains consistent across all jurisdictions, while allowing local compliance staff to assess and manage the risks specific to their jurisdiction. Additionally, the program should be tailored to the higher of standards between the jurisdictions, and should be consistent with the head office audits. Providing all foreign jurisdiction reports to the head office for approval is not necessary, as long as the program is consistent with the head office policies.
NEW QUESTION # 316
An anti-money laundering specialist notes a significant reduction in suspicious transaction report filings at a particular branch. Which of the following actions is most appropriate?
- A. Review staff records to see whether inexperienced personnel are in critical positions without appropriate training.
- B. Review branch exception reports to determine changes in activity in accordance with customer profiles.
- C. Analyze the branch activity reports to determine whether there has been a decrease in branch activity.
- D. Place the branch on the watchlist to assure a review during the next quarter.
Answer: C
NEW QUESTION # 317
After a FATF mutual evaluation process, which are resulting actions for jurisdictions that are determined to have strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing? (Choose two.)
- A. Expect private statements from FATF regarding the level of compliance of the jurisdiction, when insufficient progress is made.
- B. Request FATF for an extension of deadlines in order to provide local awareness on the improvements that are necessary to solve the deficiencies.
- C. Report to FATF on the implementation of their progress under the enhanced follow-up mechanism.
- D. Demonstrate a high-level commitment to swiftly resolve the identified deficiencies in the FATF mutual evaluation report.
- E. Appeal to FATF for a technical compliance re-rating based on the jurisdiction's own experts criteria.
Answer: C,D
NEW QUESTION # 318
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Career Opportunities
Individuals who have obtained the CAMS designation may receive a range of benefits. They include furthering one's professional portfolio via demonstrating a better understanding of the detection and prevention techniques of financial crime, helping to protect their organization from money laundering threats, and lessening financial crime risks. What's more, by flaunting this qualification on your resume, you can opt for such job roles as an Anti-Money Laundering Analyst, Bank Secrecy Act (BSA) Officer, Staff Auditor, Management Consultant, etc. When it comes to the annual payment received by those specialists who got CAMS certified, it equals almost $82k per year as shown by Payscale.com.
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