[Jun-2024] Feel ACAMS CAMS Dumps PDF Will likely be The best Option [Q167-Q188]

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[Jun-2024] Feel ACAMS CAMS Dumps PDF Will likely be The best Option

CAMS exam torrent ACAMS study guide

NO.167 According to the Financial Crimes Enforcement Network, after an initial suspicious activity report has been filed for a customer, a financial institution must perform a continuing review of the account for a period of how many days?

30 days

60 days

90 days

120 days

NO.168 Which three do the Office of Foreign Asset Control regulations cover? Choose 3 answers

All persons and entities within the U.S.

All U.S.-domiciled entities and their foreign branches

All foreign-based entities that have U.S. customers

All U.S. citizens

NO.169 A company service provider in Country A sets up a corporate structure for a client from Country B, which is known for corruption. The corporate structure includes a holding company in Country A with a bank account in one of the international banks located there.
During on-boarding, the client’s wealth was estimated at $7 million. Shortly thereafter, the client’s father became president of Country B. During a routine client review two years later, it was identified that client’s wealth had grown to $510 million.
What are two red flags that indicate money laundering or financial terrorism? (Choose two.)

The client is from a country known for corruption.

The substantial growth in wealth during a short period of time.

The client is a family member of a PEP from a country known for corruption.

The holding company is in Country A with a bank account in one of the international banks.

NO.170 The marketing department presents a business plan targeting individuals holding important public positions.
What are some steps the financial institution should implement as part of the plan to target such individuals?

Investigate the source of funds

Determine the purpose of the account

Determine if the client appears on the Basel Committee on Banking Supervision’s list of public officials

Take all reasonable steps to check the background of the individual based on public information

NO.171 Enhanced due diligence (EDD) may be bypassed for which situation?

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.

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.

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.

On-boarding a reputable Politically Exposed Person (PEP) from the EU onto the wealth management arm of a US financial institution (FI).

Enhanced due diligence (EDD) is a set of additional measures that must be applied by financial institutions (FIs) in higher-risk situations, such as when dealing with customers or transactions from high-risk third countries, customers who are politically exposed persons (PEPs), or customers who present a higher risk of money laundering or terrorist financing. EDD may include obtaining more information on the customer’s identity, source of funds, source of wealth, business relationships, and purpose of the transaction, as well as conducting more frequent and intensive ongoing monitoring of the customer’s activities.
However, EDD may be bypassed for certain situations where the risk of money laundering or terrorist financing is low, and where the customer is subject to adequate supervision and regulation in the EU or the US. According to the CAMS Study Guide – 6th Edition1, one such situation is when on-boarding a casino 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. This is because such a casino is likely to have a low risk profile, as it is not the main source of income for the hotel chain, and it adheres to the same standards and controls as the rest of the group. Therefore, EDD may not be necessary for this situation, and the FI may apply simplified due diligence (SDD) instead.
The other situations listed in the question are not eligible for bypassing EDD, as they involve higher-risk factors, such as dealing with customers or entities from high-risk third countries, customers with complex ownership structures, or customers who are PEPs. These situations require FIs to apply EDD measures to mitigate the risk of money laundering or terrorist financing.
References:
CAMS Study Guide – 6th Edition, Chapter 3, Section 3.4, page 84
White Paper on KYC – Enhanced Due-Diligence, page 2
Anti-money laundering – a guide to customer due diligence, page 3
Enhanced Due Diligence for High-risk Customers, page 1

NO.172 A European Union (EU) bank has a correspondent banking relationship with a U.S. bank. Under USA PATRIOT Act Section 311, the U.S. government has enacted special measures against a designated entity that has a payable-through account with the EU bank. Which of the following actions might the U.S. bank be required to take regarding the EU bank’s services for the designated entity?

Ensure the designated entity’s confidential information is not shared with other entities.

Obtain additional information about customers permitted to use this account.

Verify that the EU bank serves the designated entity.

Perform enhanced due diligence on the EU bank.

NO.173 What is an example of the integration stage of money laundering involving a bank or another deposit-taking institution?

Depositing illicit funds into an account set up for a front company

Directing third parties to exchange illicit cash for negotiable instruments

Wiring illicit funds from an account at one bank to an account at another bank

Using illicit funds that had previously been deposited to purchase a luxury vehicle

NO.174 What action does the USA PATRIOT Act allow the US government to take regarding financial institutions (Fls) that are based outside of the US?

Allow all US regulators to place a non-US FI on the Specially Designated Nationals and Blocked Persons List.

Subpoena documents from Fls that have no presence in the US.

Revoke the banking licenses of non-US Fls in countries outside the US.

Sanction a country when an individual FI does not comply with US law.

NO.175 A financial institution (FI) has decided to revamp its compliance program to be more risk-based. Which option should the FI use as part of the new risk-based compliance program?

Leadership-based

Predictive-based

Transaction-based

Data-based

NO.176 An offshore company is owned by four equal partners that reside in separate jurisdictions. One partner presents an authenticated power of attorney apparently executed by the remaining three partners in his favor and requests that a bank account be opened on behalf of all partners. He needs this done quickly because there is a large deposit pending. The account-opening officer contacts the bank’s anti-money laundering officer for advice. Which of the following should the anti-money laundering officer advise as an initial step?

Verify the identity of all the partners.

Verify the source of the deposit.

File a suspicious transaction report with the appropriate Financial Intelligence Unit.

File a suspicious transaction report with the Egmont Group.

NO.177 Which is an example of structuring with regards to money laundering?

A person uses the hawala system to transfer 10,000 USD from Australia to a family member in China.

A person deposits 100,000 USD in cash at a bank.

A person deposits substantial sums of currency into a number of local branches by making several cash transactions of less than 10,000 USD.

A person deposits a large amount of more than 100,000 USD in cash and transfers it to another person’s account.

Structuring is a technique used in the placement stage of money laundering, in which the launderer deposits or withdraws cash in amounts below the reporting threshold to avoid detection or suspicion. Structuring is also known as smurfing, because it involves using multiple individuals or locations to carry out the transactions. Structuring is illegal in many jurisdictions and is a red flag for money laundering12.
Option A is not an example of structuring, but of using an alternative remittance system, which is a method of transferring money outside the formal financial sector. Hawala is a type of alternative remittance system that relies on a network of brokers who settle the transactions through trust and honor. Hawala can be used for legitimate purposes, but also poses a risk for money laundering and terrorist financing13.
Option B is not an example of structuring, but of a large cash transaction, which is a common indicator of money laundering. Large cash transactions may involve the proceeds of crime or the attempt to evade taxes or currency controls. Financial institutions are required to report large cash transactions above a certain threshold to the relevant authorities14.
Option D is not an example of structuring, but of a wire transfer, which is a method of moving funds electronically from one account to another. Wire transfers can be used for legitimate purposes, but also pose a risk for money laundering and terrorist financing, especially if they involve high-risk jurisdictions, shell companies, or complex chains of transactions1 .
References: 1: ACAMS (2020), Study Guide for the Certification Examination, 6th Edition, ACAMS, Miami, FL, USA, www.acams.org/en/cams-certification-package-6th-edition, pp. 12-14, 18-19, 22-23, 26-27. 2:
ACAMS (2020), CAMS Examination Preparation Video, 6th Edition, ACAMS, Miami, FL, USA, www.acams.org/en/cams-certification-package-6th-edition, Module 1, Section 1.2.2. 3: ACAMS (2020), CAMS Examination Preparation Video, 6th Edition, ACAMS, Miami, FL, USA, www.acams.org/en/cams-certification-package-6th-edition, Module 1, Section 1.2.3. 4: ACAMS (2020), CAMS Examination Preparation Video, 6th Edition, ACAMS, Miami, FL, USA, www.acams.org/en/cams-certification-package-6th-edition, Module 1, Section 1.2.1. : ACAMS (2020), CAMS Examination Preparation Video, 6th Edition, ACAMS, Miami, FL, USA, www.acams.org/en/cams-certification-package-6th-edition, Module 1, Section 1.2.4.

NO.178 Which of the following provides anti-money laundering specialists information related to money laundering trends?
1. Egmont Group’s 100 Cases
2. Financial Action Task Force Typologies
3. FinCEN’s SAR Activity Review
4. The Wolfsberg Principles

1, 2, and 3 only

1, 2, and 4 only

1, 3, and 4 only

2, 3, and 4 only

NO.179 A bank compliance officer has implemented enhanced monitoring rules that have identified some unusual activity that may be indicative of human trafficking.
Which red flag should prompt additional transactional review?

Wire transfer activity from countries with significant migrant populations

Cash deposits that occur in cities where the customer resides and conducts business

Cash deposits that occur in cities where the customer does not reside or conduct business

Cash deposits that occur in cities where the customer does not reside or conduct business followed by same-day withdrawals

NO.180 The compliance officer at a crowdfunding website is in charge of monitoring new crowdfunding projects. Recently, the number of crowdfunding projects has significantly increased.
Which red flag indicates the highest anti-money laundering risk?

Those with the largest number of donors

Projects that get funding within days of their start

Projects with the highest monetary success threshold

Projects that start and close and are fully funded within a very short period

NO.181 Which two aspects of precious metals pose the highest risk of money laundering? (Choose two.)

Some precious metals can be formed into other objects, making easier to transport

Precious metals have high intrinsic value in a relatively compact form and are easy to convert into currency

The value of precious metals can be inflated easily, making it easy to increase the amount of money laundered

Precious metals can be readily used in many high-tech commercial applications, making them all the more valuable

Precious metals, such as gold and silver, pose a high risk of money laundering because they have some features that make them attractive to criminals. According to the FATF Guidance on the Risk-Based Approach for Dealers in Precious Metals and Stones1, these features include:
Some precious metals can be formed into other objects, making easier to transport. For example, gold can be melted and shaped into jewellery, coins, bars, or other items that can be easily concealed and moved across borders. This makes it difficult for law enforcement and customs authorities to detect and seize the illicit proceeds of crime.
Precious metals have high intrinsic value in a relatively compact form and are easy to convert into currency. For example, gold has a stable and universal value that can be exchanged for cash or other assets in any market. This makes it easy for criminals to store, transfer, and launder their illicit funds without leaving a trace in the formal financial system.
The other two options, C and D, are not as relevant to the risk of money laundering. The value of precious metals is determined by the market forces of supply and demand, and it is not easy to inflate or manipulate it.
Precious metals can be used in many high-tech commercial applications, but this does not necessarily make them more valuable or more prone to money laundering.
References:
1: FATF Guidance on the Risk-Based Approach for Dealers in Precious Metals and Stones, 2008,
https://www.fatf-gafi.org/en/publications/Fatfrecommendations/Fatfguidanceontherisk-basedapproachford
2: Money laundering and terrorist financing risks and vulnerabilities associated with gold, 2015,
https://www.fatf-gafi.org/en/publications/Methodsandtrends/Ml-tf-risks-and-vulnerabilities-gold.html
3: The anti-money laundering framework for precious stones and metals dealers in Singapore, 2021,
https://www.emerald.com/insight/content/doi/10.1108/JMLC-07-2021-0074/full/html
4: Gold and Money Laundering, 2019,
https://www.moneylaunderingnews.com/2019/04/gold-and-money-laundering/

NO.182 Which factors should lead to a reassessment of the current AML program? (Select Two.)

Expansion of business to new territories

Appointment of a new Chief Financial Officer

Change of company name

Change of internal audit team members

New product offering

According to the ACAMS CAMS Study Guide, 6th Edition, Chapter 2, Section 2.1, the AML program should be reassessed periodically or when there are significant changes in the business environment, such as:
Expansion of business to new territories: This could expose the business to new risks, regulations, and customers that require different AML policies, procedures, and controls. The AML program should be updated to reflect the new jurisdictions and their AML requirements, as well as to conduct appropriate risk assessments and due diligence on the new markets and customers.
New product offering: This could introduce new vulnerabilities, opportunities, and challenges for the AML program. The AML program should be revised to incorporate the new product features, benefits, and risks, as well as to ensure compliance with any applicable AML rules and standards for the new product.
The other options are not factors that would necessarily lead to a reassessment of the current AML program, unless they have a material impact on the AML risks, objectives, or performance of the business:
Appointment of a new Chief Financial Officer: This could affect the AML program if the new CFO has a different vision, strategy, or approach to AML than the previous one, or if the new CFO has a significant role or responsibility in the AML program. However, the appointment of a new CFO alone does not trigger a reassessment of the AML program, unless there are other changes or issues that warrant a review.
Change of company name: This could affect the AML program if the change of name reflects a change of ownership, structure, or nature of the business that could alter the AML risks, obligations, or expectations. However, the change of name alone does not necessitate a reassessment of the AML program, unless there are other implications or consequences that affect the AML program.
Change of internal audit team members: This could affect the AML program if the new internal audit team members have different qualifications, skills, or experiences than the previous ones, or if the new internal audit team members have a different scope, methodology, or frequency of auditing the AML program. However, the change of internal audit team members alone does not require a reassessment of the AML program, unless there are other factors or findings that indicate a need for a review.
References:
ACAMS CAMS Study Guide, 6th Edition, Chapter 2, Section 2.1
ACAMS CAMS Certification Video Training Course – Exam-Labs
Exam CAMS: Certified Anti-Money Laundering Specialist (the 6th edition)

NO.183 Which statement identifies one of the duties of a government Financial Intelligence Unit?

It serves as the central agency for the receipt of disclosures filed by reporting entities.

It administers and enforces economic and trade sanctions based on a government’s foreign policy and national security goals.

It supervises and regulates banking institutions to ensure the safety and soundness of the nation’s banking and financial system.

It prosecutes suspected money launderers and terrorist financiers based on financial institution suspicious transaction report filings.

NO.184 An anti-money laundering specialist at a large institution is responsible for informing senior management about the status of the anti-money laundering program across the organization. The global institution handles retail banking, commercial banking, global markets, private banking and has an affiliated securities dealer.
The specialist and the team provide corporate strategic direction to these areas on anti-money laundering related subjects. The following information is reported to executive management on a regular basis:
*Total number of suspicious transactions identified and reported
*Suspicious transaction trends
*Training that has occurred for the various units
*Status report on the anti-money laundering regulatory environment
*Summary of exception reports
Which of the following additional elements is the most useful?

The total credit exposure for non-cooperative countries and territories.

Results of related audits and examinations.

Details on inquiries received from law enforcement.

Notification of management changes in the different major divisions.

NO.185 What are three factors a financial institution should examine with regard to a new customer who is opening up a new account? Choose 3 answers

The country or location where the customer is from or does business

The type and size of the business the customer runs

The legal structure of the customer’s business

The previous financial institutions where the customer has banked

NO.186 A client is a wholesale auto business that operates as a used car lot. The client regularly ships vehicles internationally. In a four-month period, the client received wires totaling $1,250,000 from a dealer in Benin in West Africa. All wires originated from Benin and were in increments of $50,000.
Account debits made to the account were payable to various transport companies. All incoming checks reference various vehicles purchased. Dock shipping receipts produced by the client to support account activity identify the vehicles but cannot easily be tied to the wires received.
What is the suspicious behavior?

The dock shipping receipts match the vehicles

Vehicles are regularly shipped internationally

Wires received are in large, even dollar amounts

Account debits are payable to transport companies

NO.187 The compliance officer for a bank is reviewing on-boarding documents for a new business account for a domestic corporation. The officer is unable to verify the identity of the beneficial owners of the company. Only information on the nominee owners was provided, and none of the listed addresses are local. The purpose of the business and future expected activity were disclosed to include cash letters, money orders and international remittance transfers.
Which red flag identifies a heightened money laundering risk?

Expected activity was advised to include cash letter and money orders

The nature and purpose of the business include international remittance transfers

The names provided at account opening are identified as the corporation’s representative nominees

Account signer’s government issued identification lists addresses outside of where the branch account was opened

NO.188 Which two individuals are ordinarily beneficial owners of a private banking account according to the Wolfsberg Anti-Money Laundering Principles for Private Banking? (Choose two.)

Those two are authorized signers on the account

Those who have legal title to a controlling share interest in the customer

Those who generally have ultimate control through ownership or other means over the funds in the account

Those who are the ultimate source of funds for the account and whose source of wealth should be subject to due diligence