[Feb 09, 2025] CAMS Dumps PDF and Test Engine Exam Questions - TestPDF
Verified CAMS exam dumps Q&As with Correct 645 Questions and Answers
NEW QUESTION # 138
Federal law requires all U.S. financial institutions to secure and maintain all records and supporting documentation used m suspicious activity reporting for how many years?
- A. 5 years
- B. 10 years
- C. 2 years
- D. No requirement
Answer: A
NEW QUESTION # 139
Upon a routine account review a money laundering investigator identified a number of large round dollar wire transfer deposits into a business account owned by a local auto repair shop. The wire transfers all originated from a country that is a known financial secrecy haven with poor anti-money laundering controls. The investigator concludes there appears to be no legitimate business purpose for the wire transfers and files a suspicious transaction report. The owner of the auto repair shop is popular in the community and is a wellknown philanthropist.
To whom should the investigator escalate these concerns?
- A. Audit committee
- B. The owner of the auto repair shop
- C. The bank anti-money laundering officer
- D. Chairman of the Board
Answer: C
Explanation:
The investigator should escalate these concerns to the bank anti-money laundering officer, who is responsible for overseeing the implementation and effectiveness of the bank's AML/CFT policies and procedures, as well as ensuring compliance with relevant laws and regulations. The bank anti-money laundering officer can then decide on the appropriate course of action, such as conducting further investigation, reporting to the regulators, or terminating the relationship with the customer. The other options are not suitable for escalating these concerns, as they may not have the authority, expertise, or responsibility to handle such matters.
References:
* ACAMS, CAMS Examination Study Guide, 6th Edition, Chapter 4, pp. 113-114
* FATF Guidance: The Role of Hawala and Other Similar Service Providers in Money Laundering and Terrorist Financing, October 20131, p. 19
* Basel Committee on Banking Supervision, Sound management of risks related to money laundering and financing of terrorism, June 20172, p. 10
NEW QUESTION # 140
Which factor should a bank consider before sharing information about a customer with its broker-dealer affiliate in the case of an investigation?
- A. Whether the broker-dealer affiliate can rely on the due diligence done by the bank
- B. Whether both institutions have an account or are in the process of opening an account for the customer
- C. Whether privacy and data protection rules permit the bank to share the information with the affiliate
- D. Whether there is a mutual legal assistance treaty in place between the two institutions
Answer: D
NEW QUESTION # 141
Which response represents a high-level principle for FATF-Style Regional Bodies (FSRB)?
- A. Membership, mission, financial procedures, and budget
- B. Dependent with different experiences to strengthen the overall effort
- C. Access to documents and assistance with meetings
- D. Reciprocity for effective participation and recognition of work
Answer: D
Explanation:
Reciprocity is one of the high-level principles that govern the relationship between the FATF and the FSRBs.
It means that both the FATF and the FSRBs should respect and acknowledge each other's work, such as standard setting, mutual evaluations, and follow-up processes. Reciprocity also implies that the FATF and the FSRBs should have similar mechanisms or practices for ensuring effective participation of their members in their activities.
References: = The main reference for this question is the document titled "High-Level Principles and Objectives for FATF and FATF-style regional bodies" published by the FATF in February 2019. You can access it by clicking here. You can also find more information about the FSRBs and their roles on the FATF website and the Sygna blog.
Reference:https://www.fatf-gafi.org/media/fatf/documents/High-Level%20Principles%20and%20Objectives%20 (4)
NEW QUESTION # 142
What are the three basic functions of a national financial intelligence unit?
- A. Train, share, collect
- B. Compile, assess, monitor
- C. Investigate, report, record
- D. Receive, analysis, disseminate
Answer: D
Explanation:
A National Financial Intelligence Unit (FIU) has three primary functions: receiving, analyzing, and disseminating information related to suspicious financial activities. The FIU's main focus is to identify and investigate suspicious activities, such as money laundering, terrorist financing, and other financial crimes. The FIU also works with other organizations and agencies to develop effective and efficient financial crime prevention strategies. The FIU is tasked with developing an effective system for receiving, analyzing, and disseminating information related to suspicious financial activities. The information collected is then used to identify, investigate, and prosecute financial crimes.
NEW QUESTION # 143
Which method is indicative of potential money laundering and terrorist financing activity?
- A. A commercial client in the export business regularly receives wire transfers from high risk countries
- B. An unknown client pays $1,000 in cash for an urgent transfer to a high risk country
- C. Client converts 500 Euro in mixed denomination notes to small denomination U.S. bills in a single transaction
- D. An unknown client purchases multiple monetary instruments for one person during the course of one day
Answer: B
Explanation:
This method is indicative of potential money laundering and terrorist financing activity because it involves several red flags, such as:
The use of cash, which is anonymous and difficult to trace
The urgency of the transfer, which may suggest a need to move funds quickly before they are detected The destination of the transfer, which may be a high risk country with weak anti-money laundering (AML) and counter-terrorism financing (CTF) controls or sanctions The lack of information about the client and the beneficiary, which may indicate a lack of due diligence or customer identification These factors may indicate that the client is trying to conceal the source, ownership, or purpose of the funds, or that the funds are related to illicit activities such as money laundering or terrorist financing.
References:
ACAMS CAMS Certification Video Training Course1, Module 2: Money Laundering Risks and Methods, Lesson 2.2: Money Laundering Methods ACAMS CAMS Study Guide, 6th Edition2, Chapter 2: Money Laundering Risks and Methods, Section
2.2: Money Laundering Methods, pp. 35-36
ACAMS CAMS Examination Preparation Seminar, 6th Edition3, Chapter 2: Money Laundering Risks and Methods, Section 2.2: Money Laundering Methods, Slide 14
NEW QUESTION # 144
Which is a FATF characteristic used to assess a country's effectiveness of its AML regime?
- A. Legal persons are prevented from misuse for money laundering or terrorist financing.
- B. Supervisors appropriately supervise, monitor, and regulate financial institutions (Fls).
- C. FIs adequately apply preventive measures.
- D. Funds supporting and proceeding from crime or terrorism are prevented from entering the financial sector.
Answer: D
NEW QUESTION # 145
A casino incorporated in an offshore location approaches a financial institution to open an account relationship. The casino operates in a country that complies with Financial Action Task Force 40 Recommendations. The casino provides documentation of beneficial ownership. According to the Financial Action Task Force 40 Recommendations, the primary concern for the financial institution prior to opening the account is to
- A. Ensure the financial institution knows the casino's customers.
- B. Determine whether the casino conducts on-line gaming.
- C. Secure gaming insurance.
- D. Verify the casino is licensed.
Answer: D
NEW QUESTION # 146
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. The person in the United States who can receive service of legal process for the correspondent bank
- B. A list of politically exposed persons who are owners of the correspondent bank
- C. A list of anti-money laundering training records for the financial institution employees monitoring payable through account transactions
- D. A list of account holders at the financial institution who will use the payable through account
Answer: B
Explanation:
Reference: https://www.wolfsberg-principles.com/sites/default/files/wb/pdfs/CBDDQ-Capacity-Building/ Wolfsberg%27s_CBDDQ_Capacity_Building_Guidance_Final%20V1.1.pdf
NEW QUESTION # 147
A compliance officer at a financial institution (FI) received an investigation request for a customer from a local law enforcement agency. Which action should be taken by the FI?
- A. Assign employees responsible for the customer to the investigation team.
- B. Obtain approval from the Financial Intelligence Unit (FIU) before submitting the customer's information.
- C. Consider retaining qualified, experienced legal counsel.
- D. Omit some responses to meet the regulatory deadline.
Answer: C
Explanation:
The best course of action for the FI in this scenario is to consider retaining qualified, experienced legal counsel. This is because the investigation request from the local law enforcement agency may involve complex legal issues, such as confidentiality, privacy, data protection, and cooperation obligations. The FI may need to balance the interests of the customer, the law enforcement agency, and the FI itself, and ensure that it complies with the applicable laws and regulations in responding to the request. The legal counsel can advise the FI on the scope, validity, and implications of the request, and help the FI to prepare and submit the required information in a timely and appropriate manner. The legal counsel can also protect the FI from any potential liability or litigation arising from the investigation.
References:
1: Requests by Law Enforcement for Financial Institutions to Maintain Accounts and/or Conduct Transactions1
2: Answers to Frequently Asked Questions Regarding Suspicious Activity Reporting and Other Anti-Money Laundering Considerations2
3: ACAMS Study Guide for the CAMS Certification Examination3
NEW QUESTION # 148
Which two methods have terrorist groups used to diversify their revenue stream and to fund their operations? (Choose two.)
- A. Human trafficking
- B. Engaging in wire transfer activity
- C. Smuggling cultural artifacts
- D. Engaging in civil conflict
Answer: A,B
NEW QUESTION # 149
A prospective client walks into an accounting firm wanting to incorporate a company. The accountant feels uncomfortable after the meeting. Which two of the accountant's observations warrant escalation to the compliance officer? (Select Two.)
- A. The prospective client presents confusing details about the proposed business and has very little knowledge about the proposed business activity.
- B. The prospective client is unable to provide information about the beneficial owners.
- C. The prospective client is able to provide source of funds and source of wealth documents.
- D. The prospective client exhibits confidence when speaking to the accountant when providing personal details.
- E. The principal activities of the proposed company are importing and exporting new furniture.
Answer: A,B
Explanation:
A lack of information about beneficial owners is a red flag for potential money laundering or terrorist financing. It is important to identify who the actual owners of the company are to understand their potential risk exposure.
Confusing details about the proposed business activity and lack of knowledge about the proposed business are also red flags for potential money laundering or terrorist financing. This could indicate that the proposed business activity is not legitimate and is being used to conceal illegal activities.
Therefore, these two observations should be escalated to the compliance officer for further investigation.
NEW QUESTION # 150
You need to recommend a data storage solution that meets the technical requirements.
What is the best data storage solution to recommend? More than one answer choice may achieve the goal.
Select the BEST answer.
- A. Azure Databricks
- B. Azure SQL Database
- C. Azure Cosmos DB
- D. Azure Table storage
Answer: B
Explanation:
Explanation/Reference:
References:
https://docs.microsoft.com/en-us/azure/architecture/example-scenario/ai/commerce-chatbot Design solutions Question Set 1
NEW QUESTION # 151
Which two aspects of precious metals pose the highest risk of money laundering? (Choose two.)
- A. Precious metals can be readily used in many high-tech commercial applications, making them all the more valuable
- B. Some precious metals can be formed into other objects, making them easier to transport
- C. Precious metals have high intrinsic value in a relatively compact form and are easy to convert into currency
- D. The value of precious metals can be inflated easily, making it easy to increase the amount of money laundered
Answer: A,C
NEW QUESTION # 152
What might limit a compliance officer's ability to respond to a foreign law enforcement official's request to provide information with regard to an anti-money laundering investigation?
- A. Anti-money laundering laws that require the confidential treatment of Suspicious Transaction Reports in the law enforcement official's country
- B. Whether the request has been processed by the foreign law enforcement official's embassy in the compliance officer's country
- C. Whether there is a mutual legal assistance treaty between the countries of the compliance officer and the law enforcement official
- D. Privacy and data protection laws in the compliance officer's country
Answer: C
NEW QUESTION # 153
Which situation would require enhanced due diligence be performed on a customer?
- A. A prospective customer recently started and incorporated a new business.
- B. The low-risk rating for a customer has not changed since the relationship was established 5 years ago.
- C. Company ownership is held in bearer share form.
- D. A customer closes their store location and opens a new store location across town.
Answer: C
Explanation:
Company ownership is held in bearer share form. Bearer share ownership can make it difficult to identify the actual owners of a company and is therefore considered a high risk for money laundering or terrorist financing.
Enhanced due diligence measures may include obtaining additional identification and ownership information, conducting more frequent reviews of the account, and monitoring transactions more closely.
Reference: Certified Anti-Money Laundering Specialist (the 6th edition) Study Guide, Chapter 6, "Customer Due Diligence (CDD) and Know Your Customer (KYC)", page 115.
NEW QUESTION # 154
Which statements regarding the USA PATRIOT ACT best describe key aspects that have extraterritorial reach? (Choose three.)
- A. It allows federal banking supervisors to require records of the identity of the owners of a foreign bank from a Fl operating in the US.
- B. It excludes as foreign FIs businesses that would be considered broker-dealers, money transmitters, and currency exchangers.
- C. It obliges the government to trace the origin of the funds when a seizure of assets occurs in a correspondent account that has been opened and maintained for a foreign bank in the US.
- D. It allows foreign banks to voluntarily designate a registered agent in the US to accept service of subpoenas.
- E. It allows the Secretary of the Treasury to order a US financial institution (FI) to close a correspondent account when a subpoena has not been responded by a foreign bank in a timely manner.
- F. It allows for the US Attorney General to subpoena records from a foreign bank with US correspondent accounts, including those that are located outside the US.
Answer: B,E,F
NEW QUESTION # 155
A bank employee reviews wire transactions looking for indications of wire stripping.
Which two actions should the employee take to complete appropriate bank procedures? (Choose two.)
- A. Check for suspicious phrases usually used to conceal originator or beneficiary identity
- B. Identify large incoming wire transactions received on behalf of a foreign client with no explicit reason
- C. Identify wire transaction activity to or from a financial institution located in a higher risk jurisdiction
- D. Compare the wire transaction as it enters and after it leaves the bank
Answer: B,C
Explanation:
Explanation/Reference: https://www.lexology.com/library/detail.aspx?g=79732c5e-b4bf-456a-9604-712f44f5a930
NEW QUESTION # 156
What is a tool governments and multi-national bodies can use to prevent the proliferation of weapons of mass destruction?
- A. Economic Sanctions
- B. Commission Rogatoire
- C. Mutual Legal Assistance Treaties
- D. Account Monitoring Order
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.
References:
* 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 # 157
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