Latest ACAMS CAMS Actual Free Exam Questions & Community Discussion, Page 7

Question #91

What are two reasons physical certificates present a money laundering risk to broker-dealers? (Choose two.)

A. Physical certificates may be provided to nominees for deposit or settled in off-market transactions

B. The trade information on a physical certificate can be easily altered

C. There is little information readily available to the broker confirming the source of the funds

D. Physical certificates do not expire and may be held by the owner for perpetuity

Discussion 0

Correct Answer: A,B Vote an answer

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Question #92

Which aspect of the USA PATRIOT Act impacts foreign financial institutions?

A. Expanding sanctions requirements to a U.S. financial institution's foreign branches

B. Providing authority to impose special measures on institutions that are of primary money- launderingconcern

C. Expanding the anti-money laundering program requirements to all foreign financial institutions

D. Requiring enhanced due diligence for foreign shell banks

Discussion 0

Correct Answer: B Vote an answer

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Question #93

A new compliance officer is reviewing the bank's anti-money laundering program and notices that the risk assessment was completed six months ago. Since that time, the bank acquired another financial institution, renamed the internal records group, and streamlined cash handling procedures.
Which factor causes the compliance officer to update the bank's risk assessment?

A. The internal records group has been re-named

B. The risk assessment was completed six months ago

C. The cash handling procedures were streamlined

D. The bank acquired another institution

Discussion 0

Correct Answer: D Vote an answer

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Question #94

Which scenario indicatespotential money laundering activity by a lawyer?

A. A lawyer's trust account receives a large-value wire transfer from a regulated insurance company and immediately transfers the same amount of funds received to the beneficiary's bank account located in a low-risk country.

B. A lawyer's trust account regularly receives wire transfers from unknown remitters from a higher-risk country and immediately transfers the same amount of funds received to a known beneficiary's account in a low-risk country.

C. A lawyer's trust account receives a large wire transfer deposit from a client that wanted to purchase a piece of property and then transfers the same amount to the property seller's lawyer's trust account.

D. A lawyer located in a higher-risk country deposits their firm's bank draft issued from their trust account to another lawyer's trust account located in a low-risk country for legal services rendered.

Discussion 0

Correct Answer: B Vote an answer

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Question #95

Which event occurs most frequently in money laundering in the insurance industry?

A. Redeeming a policy at the end of its term

B. Getting a reimbursement from an overfunded policy

C. Purchasing full-term insurance bonds

D. Failing to take advantage of the free-look period

Discussion 0

Correct Answer: B Vote an answer

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Question #96

In order to demonstrate commitment to AML compliance within a bank, the Board of Directors should:

A. establish a written AML policy that contains the basic principles to be followed by staff from the top down.

B. keep senior management apprised of key developments in the AML regime and the impact of applicable laws and legislations.

C. monitor the fulfilment of AML compliance duties within the bank.

D. ensure senior management maintains accountability for the effectiveness of the AML program implementation.

Discussion 0

Correct Answer: A Vote an answer

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Question #97

Whichline of defenseissolely tasked with providing assurance to the Board of Directorsof an organization?

A. The second line of defense

B. The third line of defense

C. The fourth line of defense

D. The first line of defense

Discussion 0

Correct Answer: B Vote an answer

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Question #98

A credit institution has been served with a preliminary findings report highlighting major deviations from AML obligations in its country and stating that it faces the possibility of withdrawal of its banking license.
Which authorities could have issued the report?

A. A banking sector self-regulatory body

B. Financial Action Task Force (FATF)

C. AML supervisory authority

D. Law enforcement authority

Discussion 0

Correct Answer: C Vote an answer

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Question #99

In addition to monitoring for suspicious activity, what are electronic monitoring systems also valuable for?

A. Highlighting the skills of the system analysts

B. Meeting mandatory regulatory requirements for system implementation

C. Identifying how customers are using products

D. Proving to the Board of Directors that the FIU is doing its job

Discussion 0

Correct Answer: B Vote an answer

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Question #100

What should senior management do in order to promote a culture of anti-money laundering compliance?

A. They should have close ties with the independent auditors of the AML program

B. They should include compliance with AML procedures as condition of employment

C. They should base employee compensation on the amount of suspicious activity they detect

D. They should attend all training sessions with front-line employment

Discussion 0

Correct Answer: B Vote an answer

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Question #101

Alegal instrument executed between two nationsthat governscross-border information sharingis known as a:

A. Request for Urgent Information.

B. Memorandum of Agreement.

C. Mutual Legal Assistance Treaty.

D. Memorandum of Understanding.

E. Declaration of Understanding.

Discussion 0

Correct Answer: C Vote an answer

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Question #102

What does the Basel Committee's Customer Due Diligence for Banks paper suggest that a bank needs to have in place when establishing an account for a corporate business entity?

A. A policy requiring all identified beneficial owners to undergo a national police check

B. A process to ensure that the approval of senior management is obtained prior to opening the account

C. A fee structure that reflects the banks' costs in monitoring the risks associated with entity's business activities

D. An understanding of the structure of the company

Discussion 0

Correct Answer: D Vote an answer

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Question #103

The USA PATRIOT Act requires United States (U.S.) financial institutions to collect certain information from non-U.S. banks that hold a correspondent account.
Which two pieces of information must a non-U.S. bank provide to its U.S. correspondent to enable them to comply with this requirement? (Choose two.)

A. The name and address of a U.S. person who is authorized to receive service of legal process for the bank

B. The name and address of all beneficial owners who own 25% or more of the bank

C. The name and address of all shell banks the bank maintains accounts for

D. Prompt notice of any suspicious activity it detects on any customer who uses the correspondent account

Discussion 0

Correct Answer: A,C Vote an answer

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Question #104

The ultimate goal of economic sanctions is to:

A. prevent terrorists from profiting from trade.

B. protect the reputation of the country.

C. reduce the profits of sanctioned countries.

D. protect national security.

Discussion 0

Correct Answer: D Vote an answer

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Question #105

Which of the following arekey metricsthat providevaluable data to senior managementabout the effectiveness of an FI'sAML controls?

A. Theratio of true positives to false positivesgenerated by the automated monitoring system.

B. Thenumber of high-risk customers onboardedeach month.

C. Thenumber of money laundering alertsgenerated by the watchlist screening system.

D. Thenumber of clients exitedfor commercial reasons.

Discussion 0

Correct Answer: A Vote an answer

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