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CAMS Certification Dumps CAMS Exam for Full Questions - Exam Study Guide
NEW QUESTION 14
After evaluating recent changes to international standards, an anti-money laundering specialist should consider enhanced due diligence on accounts held by which three groups of people?
- A. Retail Account Holders
- B. Precious Metal Dealers
- C. Foreign Exchange Dealers
- D. Lawyers
Answer: B,C,D
NEW QUESTION 15
Which of the following reflect money laundering risk indicators in relation to a securities account?
1. A high level of activity in that securities account immediately followed by a high volume of securities transactions.
2. Frequent wire transfers into an account immediately followed by debit card transactions.
3. Frequent wire transfers into an account immediately followed by checks (cheques) or other payment instruments drawn on the account.
- A. 2 and 3 only
- B. 1 and 3 only
- C. 1, 2, and 3
- D. 1 and 2 only
Answer: A
NEW QUESTION 16
Why is the Mutual Legal Assistance Treaty (MLAT) a gateway for international cooperation?
- A. They obtain intelligence that might lead to evidence
- B. They provide a legal basis for transmitting evidence that can be used for prosecution and judicialproceedings
- C. They receive reports of suspicious transactions from financial institutions to disseminate to localLaw enforcement and foreign FIUs
- D. They issue the Prmc4es of Information Exchange Between Financial intelligence Units (FIUs)
Answer: B
NEW QUESTION 17
- A. Seize Bank A's $5 million correspondent account in the U.S.
- B. Seize WTS' $1 million account at the non-U.S. branch of Bank A.
- C. Seize $1 million from Bank A's correspondent account in the U.S.
- D. The U.S. government has initiated forfeiture action against the WTS.
Which potential action can the U.S. take under the USA PATRIOT ACT pursuant to the issuance seizure warrant? - E. Seize $5 million from the non-U.S. branch of Bank A where the WTS' account is located.
Answer: C
NEW QUESTION 18
In reviewing recent transaction activity, a compliance officer for a money transmitter notices that several customers are each remitting the same amount of money but much more frequently.
How should the institution respond?
- A. Immediately contact the customers and ask them why they are remitting money more often
- B. File a suspicious transaction report
- 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: B
NEW QUESTION 19
A suspicious transaction report filed on a car dealer structuring deposits initiates a criminal investigation. The dealer changes branches and begins placing transactions with a frontline employee to whom the dealer has given numerous gifts.
This employee handles all of the dealer's structured deposits and does not report the suspicious activity internally.
The competent authority has advised the anti-money laundering specialist to avoid tipping off the employee until the investigation is finalized.
What action should the specialist take next?
- A. Consult with senior management and the legal advisor.
- B. Advise that the dealer's accounts should be closed.
- C. Recommend the immediate termination of the employee.
- D. Inform the institution's regulatory agency of the situation.
Answer: A
NEW QUESTION 20
A financial institution has expanded its scope of services so that it is attracting the business of politically exposed persons (PEPs) who had previously never been part of the customer base.
Which two courses of action should the compliance officer include in the institution's procedures for considering PEPs as customers? (Choose two.)
- A. Conduct enhanced ongoing monitoring of the business relationship
- B. Obtain appropriate senior management approval for establishing a business relationship with a PEP from a high risk country
- C. Take adequate measures to establish the source of wealth and source of funds which are involved in the business relationship or occasional transaction
- D. Expedite due diligence when a PEP is pre-approved by a member of senior management
Answer: A,D
Explanation:
Explanation/Reference:
NEW QUESTION 21
Which three circumstances are indicators for defining a customer as required additional diligence according to the Wolfsberg Principles on Private Banking? Choose 3 answers
- A. Persons engaged in business activities known to be susceptible to money laundering
- B. Persons determined to be Politically Exposed Persons (PEPs)
- C. Persons who receive funds from a correspondent banking relationship
- D. Persons residing in a having funds from countries with inadequate AML standards
Answer: A,C,D
NEW QUESTION 22
Why do governments and multi-national bodies impose economic sanctions?
- A. To prevent fraudulent international trade transactions
- B. To impede kleptocracy
- C. To combat an imminent terrorist threat
- D. To enforce foreign policy objectives
Answer: D
Explanation:
Explanation/Reference: https://en.wikipedia.org/wiki/Economic_sanctions
NEW QUESTION 23
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?
- A. Account signer's government issued identification lists addresses outside of where the branch account was opened
- B. The names provided at account opening are identified as the corporation's representative nominees
- C. Expected activity was advised to include cash letter and money orders
- D. The nature and purpose of the business include international remittance transfers
Answer: B
NEW QUESTION 24
When an institution files an STR with regard to a particular account, what steps should the institution take via account?
- A. The institution should consult its counsel and AML compliance officer and determine whether closing the account is in accord with the institution's procedures
- B. The institution should not close the account due to the risk of tipping off the customer and upsetting the criminal investigation
- C. The institution should close the account due to the obvious risk it represents
- D. The institution should keep the account open due to the need to continue to monitor the account
Answer: D
NEW QUESTION 25
Which two statements about the Wolfsberg Group are true?
- A. It has no power to impose itsprinciples/guidance
- B. It is composed of representatives of financial intelligence units from around the world
- C. It focuses primarily on Know Your Customer, AML and CTF guidance
- D. It based its original guidancearoundcombating the laundering ofproceedsof narcoticstrafficking
Answer: A,C
NEW QUESTION 26
What should a compliance officer do during an ongoing investigation into a client's activities by a competent authority?
- A. Communicate with regulatory and law enforcement authorities in line with applicable local laws
- B. Ensure communication with regulatory and law enforcement authorities is conducted only through the Board of Directors
- C. Only provide information that is specifically and directly requested
- D. Communicate only in writing regulatory and law enforcement authorities in line with applicable local laws
Answer: C
NEW QUESTION 27
An incoming urgent international wire transfer in U.S. dollars has been identified by the sanctions screening team. The transaction is a large rounded amount and the name of the beneficiary is "North Korean Cigars Company" with an address in an industrial zone in Tianjin, China.
Which action should the sanctions team take?
- A. Release the transaction so that the Chinese correspondent bank will not be negatively impacted
- B. Call the correspondent bank and ask if it has performed due diligence on the originator
- C. Block the transaction immediately because it contains a reference to North Korea
- D. Hold the transaction and investigate the company before releasing the funds
Answer: C
NEW QUESTION 28
A customer comes into a financial institution and deposits a large amount of cash. He has never done that before. When asked about the deposit, he indicates he recently sold a used car and received cash.
He does not trust forms of payment and is wary of counterfeit money orders. What should the bank do?
- A. The bank has received a plausible explanation, so it should do nothing
- B. The institution should close the account before another issues arise
- C. While the explanation appears plausible, the institution should, for a period of time, monitor the account for cash transactions and suspicious activity
- D. While the explanation may be plausible, the institute should nonetheless file a Suspicious Transaction Report to protect itself
Answer: D
NEW QUESTION 29
An automotive parts company in South America sends multiple $500,000 wire transfers per week to ABC Holdings Ltd. in Asia referencing payment for silk flower shipments. Research reveals Sunrise Holdings, Ltd is registered in the British Virgin Islands with no available ownership information.
What are two red flags that indicate how trade-based money laundering could be occurring in this instance?
(Choose two.)
- A. The transaction involves the use of front (or shell) companies
- B. The type of commodity being shipped appears inconsistent with the exporter or importer's regular business activities
- C. Significant discrepancies appear between the description of the commodity on the bill of lading and the invoice
- D. The packaging is inconsistent with the commodity or shipping method
Answer: A,C
NEW QUESTION 30
What is an example of the integration stage of money laundering involving a bank or another deposit-taking institution?
- A. Using illicit funds that had previously been deposited to purchase a luxury vehicle
- B. Wiring illicit funds from an account at one bank to an account at another bank
- C. Directing third parties to exchange illicit cash for negotiable instruments
- D. Depositing illicit funds into an account set up for a front company
Answer: A
Explanation:
Explanation/Reference: https://www.moneylaundering.ca/public/law/3_stages_ML.php
NEW QUESTION 31
What are three indicators of money laundering associated with using electronic funds transfers? Choose 3 answers
- A. Regular and frequent transfers from the account of a large company said to be payment for goods bought on credit
- B. Funds transfers to or from a financial secrecy haven without an apparent business reason
- C. Payment or receipts with no apparent link to legitimate contracts, goods or services
- D. Funds transfers are received or sent from the same person to or from different accounts
Answer: B,C,D
NEW QUESTION 32
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 33
What is the appropriate compliance control for identifying politically exposed persons (PEPs) according to the Basel Committee's paper on Customer Due Diligence for Banks?
- A. Requiring that the customer discloses that they are a PEP or an associate of a PEP
- B. Determining that a local figure is a PEP
- C. Reviewing relationships at account opening and on a periodic basis
- D. Reviewing when a relationship is established
Answer: C
Explanation:
Explanation/Reference: http://www.menafatf.org/sites/default/files/Newsletter/PEPs_in_relat_on_to_AMLCFT.pdf
NEW QUESTION 34
After an institution files an STR with regard to a particular account, a law enforcement agent requests the institution to keep the account open until advised otherwise by law enforcement. What steps should the institution take?
- A. The institution should request a written letter From the law enforcement ( agency signed by an appropriate authorized signature
- B. The institution should close the account in order not to be caught in the middle of a law enforcement investigation
- C. The institution should follow the request of the law enforcement agent and keep the account open
- D. The institution should keep the account open only if doing so comports with the bank's own AML procedures
Answer: A
NEW QUESTION 35
Which three areas do FATF's 40 recommendations cover? Choose 3 answers
- A. Financial systems and their regulation
- B. Prescriptive sentences for predicate offenses
- C. International Cooperation
- D. The criminal justice system
Answer: A,C,D
NEW QUESTION 36
What are two reasons physical certificates present a money laundering risk to broker-dealers? (Choose two.)
- A. The trade information on a physical certificate can be easily altered
- B. Physical certificates may be provided to nominees for deposit or settled in off-market transactions
- C. Physical certificates do not expire and may be held by the owner for perpetuity
- D. There is little information readily available to the broker confirming the source of the funds
Answer: B,D
NEW QUESTION 37
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