[2024] CAMS by CAMS Certification Actual Free Exam Practice Test [Q154-Q178]

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[2024] CAMS by CAMS Certification Actual Free Exam Practice Test

Free CAMS Certification CAMS Exam Question

The Certified Anti-Money Laundering Specialists (CAMS) Certification Exam is a globally recognized certification that is designed to equip professionals with the knowledge and skills required to detect and prevent money laundering activities. Certified Anti-Money Laundering Specialists certification is offered by the Association of Certified Anti-Money Laundering Specialists (ACAMS), which is the largest international membership organization for anti-money laundering professionals. The CAMS certification is highly respected and recognized by regulatory bodies, financial institutions, and law enforcement agencies around the world.

NO.154 What are some red flags financial institutions should be aware of when trying to verify the identity of a customer? Choose 3 answers

Customer having unusual documents from a foreign country

Customer being new to the community

Customer having no permanent address

Customer not having a connected phone

NO.155 The main purpose of the US Treasury Department for OFAC’s extraterritorial reach is to:

accomplish the foreign policy and national security goals of the US.

defend the US against questionable trade practices of its economic rivals.

protect allied nations of the US from the economic threats of non-allied nations.

align OFAC’s and other countries’ extraterritorial reach requirements.

NO.156 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.)

It must be retained for at least five years

It must be retained for at least seven years

It must be kept in a manner so that it can be provided promptly

It must only be released to the government through a subpoena process

NO.157 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?

Agree to keep the account open

Request a subpoena to maintain the account

Request a letter on the agency’s letterhead

Request a search warrant from the local court

NO.158 What does designing a country as being of “prime money laundering concern” allow the U.S. government to do?

Obtain transactional information from U.S.-owned subsidiary banks located outside the U.S.

Close some or all correspondent or payable-through accounts

Ensure the inclusion of that country onto FATF’s Non-Cooperative Country and Territory list

Ensure the inclusion of that country into the office of Foreign Asset Control country sanctions programs

NO.159 The branch manager calls the compliance officer and informs her that a law enforcement officer has just left the branch and was asking a lot of questions and left a business card.
What should the compliance officer do?

File a suspicious transaction report

Follow up to verify that the officer received all necessary information

Verify that the reported officer was an actual authorized representative

Require the branch manager to write a detailed memo about the request

NO.160 A compliance analyst is reviewing recent activity between a publicly traded company and a company in a high risk jurisdiction. Which detail suggests that escalation is warranted?

The activity is a reputational risk to the financial institution.

It is the first time the originator wires the beneficiary.

Beneficiary is active in a related industry.

Payments to the beneficiary are for large dollar amounts.

NO.161 Which function provided by lawyers can be useful to a potential money launderer as documented by FATF in its typology report 2000-2001? Choose 3 answers

Creating complex legal arrangements

Buying and selling property

Performing financial transactions on behalf of a client

Providing legal advice

NO.162 A compliance officer is looking to modify procedures covering correspondent banking relationships. Which three would be recommended under the Wolfsburg Principles on Correspondent Banking? Choose 3 answers

Prohibition on offering products or services to shell banks

Risk-based rating of central banks and regional development banks

Periodic risk-based reviews of cents

Assessing the regulatory status and history of the client

NO.163 The owner of a real estate investment company deposits multiple cashier’s checks that were bought using cash over a three-month period, from the sale of two apartments. This account also receives several electronic transfers from other financial institutions for 10.000 USD each. What activity is considered suspicious of money laundering?

Using cash to buy multiple cashier’s checks over a period of time

Using cashier’s checks in the transactions with the real estate investment company’s account

Performing operations with real estate investment companies

Receiving electronic transfers for 10.000 USD amounts from other financial institutions

NO.164 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.)

Expect private statements from FATF regarding the level of compliance of the jurisdiction, when insufficient progress is made.

Appeal to FATF for a technical compliance re-rating based on the jurisdiction’s own experts criteria.

Demonstrate a high-level commitment to swiftly resolve the identified deficiencies in the FATF mutual evaluation report.

Request FATF for an extension of deadlines in order to provide local awareness on the improvements that are necessary to solve the deficiencies.

Report to FATF on the implementation of their progress under the enhanced follow-up mechanism.

NO.165 Law enforcement submitted a request to a bank for information regarding one of its customers.
How should the bank respond according to Financial Action Task Force Guidance?

Provide all information requested to support the investigation

Ensure that the request will not violate any local privacy regulations or legislation

Ensure the information is necessary to the investigation before responding to the request

Contact the customer informing the person of the investigation to ensure the bank provides correct information

NO.166 A bank receives an anonymous tip from an employee about another employee through its confidential hotline.
Which activity warrants further review?

A mortgage officer works with home loan applicants to resolve adverse credit issues

An employee in bookkeeping accepts funds transfer requests from customers via telephone

An employee in accounting works with customers to help understand how to reduce service charges

A teller distributes bank brochures to customers who regularly conduct cash transactions below reporting limits

NO.167 A Money Laundering Reporting Officer’s (MLRO) lack of action led to deficiencies in the bank’s AML program and a civil monetary penalty being levied against the MLRO. Why was this direct action taken against the MLRO?

The MLRO is the only individual that can be held responsible for AML program deficiencies.

MLROs can be held to an individual accountability standard and face potential penalties for contributing to AML program deficiencies.

The MLRO agreed to the civil penalty so that the bank would not be found liable for the AML program deficiencies.

Action was brought against the MLRO because banks cannot be found liable for AML program deficiencies.

NO.168 A benefit of using bearer shares in corporate formations is that bearer shares are:

widely accepted in the financial world.

entered in the register of owners.

associated with lower costs in setting up a company.

easily transferred so the holder claims ownership.

NO.169 Which method most likely indicates the placement stage of laundering dirty money in a land based casino?

Transferring substantial amounts of money from a client’s credit card to a client’s casino’s VIP account

Buying casino chips against a bank draft

Redeeming smaller denomination casino chips for largest denomination chips

Using cash to buy casino winnings from legitimate winners at a premium

NO.170 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?

The bank has not updated its automated monitoring system.

The business has no previous experience with this service.

The business has not updated its anticipated activity with the bank.

The business is now a Money Service Business and has not registered with FinCEN.

NO.171 What are three potential issues for foreign financial institutions maintaining correspondent accounts with U.S.
banks under the Patriot Act?

Cancellation of correspondent banking relationships

Forfeiture of funds in a U.S. interbank account

Prohibition of correspondent accounts for shell banks

U.S. residents maintaining private banking accounts

NO.172 How do drug traffickers and other criminals use the fine art industry to disguise illicit proceeds?

They use forged or fraudulent invoicing of priceless works of art by auction houses

They commingle legitimate and illicit proceeds by principals for payment of fine art

They immediately resell priceless works of art after purchase from a foreign auction house

They use anonymous agents to buy the art and have the payment wired from offshore havens

NO.173 What does the Egmont Group’s support for its members include?

Issuing due diligence models for financial institutions

Expanding and systematizing international cooperation in the reciprocal exchange of information

Issuing strategic products for law enforcement agencies and FIUs on topics of international interest

Expanding the ability of FIUs to enforce laws and exchange information globally to combat money laundering and terrorist financing

NO.174 What is a criterion for FATF membership?

The country should be democracy

The country should be a member of a FATF-style regional body

The country should have already implemented all of the FATF Recommendations

The country should have already implemented the standards of the European Union Directives

NO.175 Which three procedures should a compliance officer looking to revise an institution’s CTF efforts include in accordance with the Wolfsberg Group’s Statement on the Suppression of the Financing of Terrorism?

Consulting applicable lists and taking appropriate actions to determine if customers appear on such lists

Reporting matches from lists of known or suspected terrorists to relevant authorities

Maintaining customer information to facilitate timely retrieval of such information

Reviewing only original identification documents when verifying customers

NO.176 Which AML standards have force of law?

Standards as defined in the Third European Union Money Laundering Directive (2005/60/EC)

Standards as defined by the United Nations (UN)

Standards as defined by World Bank / International Monetary Fund (IMF)

40 Recommendations

NO.177 What are two purposes of the USA PATRIOT Act? (Choose two.)

To strengthen United States’ measures to prevent, detect, and prosecute international money laundering and financing of terrorism

To subject to special scrutiny foreign jurisdictions, foreign financial institutions, and classes of international transactions or types of accounts that are susceptible to criminal abuse

To administer and enforce economic and trade sanctions based on United States foreign policy and national security goals against targeted foreign countries and regimes, terrorists, and international narcotics traffickers

To set standards and promote effective implementation of legal, regulatory, and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system

NO.178 Which is a key goal of EU Directives on money laundering?

Establish a consistent regulatory environment across the EU to prevent money laundering

Address control of payments in EU countries to reduce money laundering

Allow member states to discuss the draft legislation with the cooperation of the EU Financial Intelligence Units (FIUs)

Build a network of financial institutions (FIs) that work together to prevent money laundering across the EU