Best Preparations of CAMS Exam 2021 CAMS Certification Unlimited 542 Questions
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NEW QUESTION 35
What must be materially true regarding transactions for United States (U.S.) sanctions laws to have jurisdiction?
- A. Transactions are processed by a U.S. person
- B. Transactions are identified as proceeds of foreign corruption
- C. Transactions are traced to illegal proceeds
- D. Transactions are stripped of beneficial owner information
Answer: A
Explanation:
Explanation/Reference: https://www.treasury.gov/resource-center/faqs/Sanctions/Documents/faq_all.html
NEW QUESTION 36
A well-developed anti-money laundering compliance program is unlikely to achieve institutional goals without
- A. Endorsement by a competent authority.
- B. Training appropriate employees.
- C. Screening all staff.
- D. Verification of account owners.
Answer: A
NEW QUESTION 37
An existing customer at a bank has recently expanded its services to provide check cashing for its customers.
Which factor indicates the bank should terminate this relationship?
- A. The business has no previous experience with this service.
- B. The business is now a Money Service Business and has not registered with FinCEN.
- C. The bank has not updated its automated monitoring system.
- D. The business has not updated its anticipated activity with the bank.
Answer: A
NEW QUESTION 38
How should a financial institution respond to a verbal request from a law enforcement agency to keep an account open to assist in an investigation?
- A. Request a search warrant from the local court
- B. Request a letter on the agency's letterhead
- C. Agree to keep the account open
- D. Request a subpoena to maintain the account
Answer: B
Explanation:
Explanation/Reference: http://files.acams.org/pdfs/English_Study_Guide/Chapter_5.pdf (12)
NEW QUESTION 39
An anti-money laundering specialist at a financial institution has received a legal request to provide all transaction records for a specific individual since 2004. Which of the following item s should be delivered?
1. Monthly statements and transaction activities for that individual since 2004.
2. All wire transfers for that individual since 2004.
3. Signature cards from accounts opened by that individual since 2004.
4. All security trading activities for that individual since 2004.
- A. 1, 3, and 4 only
- B. 1, 2, and 3 only
- C. 2, 3, and 4 only
- D. 1, 2, and 4 only
Answer: D
NEW QUESTION 40
A customer has held an account at a bank and has lived locally for over 25 years. Historically he has come into the bank monthly to deposit a $1,500 retirement check from the company where he worked. He is well known at the bank and often brings the staff cookies. Over the past four months, he has come into the bank every Monday, Wednesday, and Thursday to make $3,000 cash deposits into his account. A review of his account shows that an $8,500 check made out to cash clears his account each week. The bank has decided to file a suspicious transaction report (STR).
What is the important fact to include in the STR?
- A. The customer's work history and the amount of his monthly retirement check
- B. The fact that the customer has lived in the area and has banked at this bank for 25 years
- C. The recent change in the timing of deposits and withdrawals in the account
- D. The fact that the account holder is well known to the bank staff
Answer: A
NEW QUESTION 41
A bank has maintained an account for a European charity for several years. The charity provides clothing to persons in need in various countries with active terrorists' cells.
Which action by the charity indicates possible terrorist financing?
- A. The charity frequently withdraws cash from the bank
- B. The charity maintains a bank account for non-business-related expenses
- C. The charity has branch locations located in various countries
- D. The charity receives cash donations primarily from European countries
Answer: A
NEW QUESTION 42
What is the intentional evasion of a reporting or recordkeeping requirement?
- A. Placement
- B. Structuring
- C. Money laundering
- D. Layering
Answer: C
NEW QUESTION 43
According to Basel Committee on Banking Supervision's Customer Due Diligence for Banks, which of the following should provide an evaluation of a bank's policies and procedures independent from its management?
- A. The credit risk department
- B. The compliance function
- C. The Board
- D. A peer institution
Answer: B
NEW QUESTION 44
What was cited by the Wolfsberg Group in its Statement on the Suppression of the Financing of Terrorism as being vulnerable to terrorist financing?
- A. Alternative remittance
- B. Correspondent banking
- C. Trade finance
- D. Private banking
Answer: A
NEW QUESTION 45
What are two requirements with respect to supporting documentation that is used to identify potentially suspicious activity, according to Financial Action Task Force? (Choose two.)
- A. It must be kept in a manner so that it can be provided promptly
- B. It must be retained for at least seven years
- C. It must be retained for at least five years
- D. It must only be released to the government through a subpoena process
Answer: A,C
Explanation:
Explanation/Reference: https://www.fatf-gafi.org/media/fatf/documents/recommendations/pdfs/FATF%
20Recommendations%202012.pdf
NEW QUESTION 46
In reviewing recent activity, a compliance officer for a money transmitter that several customers are each remitting the same amount of money but much more frequently.
How should the institution respond?
- A. File a suspicious transaction report
- B. Immediately contact the customers and ask them why they are remitting money more often
- C. Instruct the tellers not to process remittances for these customers in the future
- D. Conduct further investigation to determine whether this is truly suspicious activity
Answer: D
Explanation:
Explanation/Reference:
NEW QUESTION 47
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. Report the activity as suspicious to the competent authority because the lawyer is covered by these directives.
- C. There is no need to file a suspicious transaction report, as this activity is covered by attorney-client privilege.
- D. Consult with the competent authority to receive advice on how to handle the transaction.
Answer: B
NEW QUESTION 48
Under requirements for correspondent accounts in the USA PATRIOT Act, the word "certification" refers to a written representation by a
- A. respondent bank, certifying that they do not do business with shell banks.
- B. correspondent bank, certifying that they do not open correspondent accounts for alternative remittance companies.
- C. federal receiver" certifying that he is not the beneficial owner of the correspondent account.
- D. respondent bank, certifying that they do not do business with politically exposed persons.
Answer: B
Explanation:
Explanation
Explanation/Reference:
The information contained in this Certification is sought pursuant to Sections 5318(j) and 5318(k) of Title 31 of the United State Code, as added by sections 313 and 319(b) of the USA PATRIOT Act of 2001 (Public Law 107-56).
This Certification should be completed by any foreign bank that maintains a correspondent account with any
U.S. bank or broker-dealer in securities (a covered financial institution as defined in 31 CFR 1010.605(e)). An entity that is not a foreign bank is not required to complete this Certification.
A foreign bank is a bank organized under foreign law and located outside of the United States (see definition at 31 CFR 1010.100(u)). A bank includes offices, branches, and agencies of commercial banks or trust companies, private banks, national banks, thrift institutions, credit unions, and other organizations chartered under banking laws and supervised by banking supervisors of any state (see definition at 31 CFR
1010.100(d)).
A correspondent account for a foreign bank is any account to receive deposits from, make payments or other disbursements on behalf of a foreign bank, or handle other financial transactions related to the foreign bank.
Special instructions for foreign branches of U.S. banks: A branch or office of a U.S. bank outside the United State is a foreign bank. Such a branch or office is not required to complete this Certification with respect to Correspondent Accounts with U.S. branches and offices of the same U.S. bank.
NEW QUESTION 49
Which method most likely indicates the placement stage of laundering dirty money in a land based casino?
- A. Buying casino chips against a bank draft
- B. Redeeming smaller denomination casino chips for largest denomination chips
- C. Transferring substantial amounts of money from a client's credit card to a client's casino's VIP account
- D. Using cash to buy casino winnings from legitimate winners at a premium
Answer: D
NEW QUESTION 50
How does a regulatory body typically obtain international assistance in a money Laundering inquiry?
- A. By submitting a request for overseas assistance to the corresponding supervisory body
- B. By contacting the FATF, Organization for Economic Co-operation and Development, or other international organizations and seeking their intervention
- C. By communicating with the Head of Compliance for the financial institution
- D. By filing a request under Egmont guidelines
Answer: A
NEW QUESTION 51
An anti-money laundering specialist working at a bank just received a legal request from a law enforcement agency mandating the release of all financial transaction records relating to an account at the bank. The specialist immediately recognizes the account as one owned by the bank Chief Executive Officer's brother. During research to gather the requested documents, the specialist finds several internal memos he had sent to the bank president with concerns regarding possible suspicious activity relating to this account. The specialist recalls the bank president verbally responded to each memo with an explanation of the activity and indicated there was no cause for concern. What should the specialist do with respect to these internal memos?
- A. Call the law enforcement agent and suggest he modify the legal request to include these memos
- B. Ask the bank president to document his instructions to the specialist
- C. Place these memos in his personal files in case they are subsequently requested
- D. Advise the bank's senior legal advisor of the situation
Answer: D
NEW QUESTION 52
After review of the financial institution's enterprise-wide anti-money laundering risk assessment, the new compliance officer identifies several deficiencies that need attention.
Which deficiency could lead to the highest potential for unmitigated risk?
- A. The risk assessment is several years old and does not cover all current products and services.
- B. The risk assessment does not anticipate potential risks even though the financial institution has no immediate plans involving those risks.
- C. The risk assessment is revisited too frequently thereby diverting critical resources from other compliance tasks.
- D. The risk assessment is managed by a different team from the previous assessment therefore disrupting continuity of institutional knowledge.
Answer: A
NEW QUESTION 53
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 explanation.
The account officer discovers that the restaurant has installed a privately-owned automated teller machine (ATM) onsite and has begun construction of a patio dining area.
Which red flag should trigger additional investigation?
- A. Increased credit card receipts
- B. Lower cash deposits
- C. Privately-owned ATM
- D. Construction of the new patio dining area
Answer: C
NEW QUESTION 54
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