CAMS Exam Questions - Real & Updated Questions PDF
Pass Guaranteed Quiz 2022 Realistic Verified Free ACAMS
NEW QUESTION 193
Which measure to mitigate risk does the Basel Committee's Customer Due Diligence Principles suggest banks apply when accepting business from non-face-to-face customers?
- A. Imposing a limit on permissible account activity for a defined period of time
- B. Requiring an in person interview with the customer
- C. Requiring additional review of account opening documents by senior management
- D. Certification of documents presented
Answer: D
Explanation:
Explanation/Reference: https://books.google.com.pk/books?id=gy8qBAAAQBAJ&pg=PA219&lpg=PA219&dq=measure+to
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20mitigate%20risk%20does%20the%20Basel%20Committee%20Customer%20Due%20Diligence%
20Principles%20suggest%20banks%20apply%20when%20accepting%20business%20from%20non-face-to- face%20customers&f=false
NEW QUESTION 194
A junior account manager within an international private bank in Country A was asked by one of his valued customers, who has held an account for several years in the institution, about depositing a large sum of cash into her account. The junior account manager informed his customer that his bank does not accept cash. The junior account manager later reviewed a customer activity report and noticed a number of smaller dollar wires from banks in neighboring Country B, which has lax currency controls, had totaled about as much as the customer intended to deposit. What should the junior account manager do?
- A. File a suspicious transaction report with the Financial Intelligence Unit
- B. Close the account
- C. Notify the anti-money laundering specialist of his bank, but do not call the customer
- D. Offer the customer a more secure method of depositing in the hope of learning something more during the conversation
Answer: A
NEW QUESTION 195
In the summer, an institution identifies anti-money laundering concerns regarding a customer's account activity.
The customer, an ice cream parlor, has deposited a lot of checks drawn on banks in foreign countries, sent large number of high dollar international wires to different countries, made cash deposits of a few hundred dollars every few days and written multiple checks for a few hundred dollars to the same dozen payees every two weeks.
Which two transaction types warrant investigation? (Choose two.)
- A. Checks drawn on banks in foreign countries
- B. The wires to foreign countries
- C. Regular cash deposits
- D. Repeated checks to the same payees
Answer: A,B
NEW QUESTION 196
An anti-money laundering analyst is reviewing a new customer list to confirm potentially high risk customers have been identified and subject to enhanced due diligence.
Which new customer warrants enhanced due diligence?
- A. A non-profit hospital
- B. An employee benefit plan trust
- C. A fundraising organization
- D. A medical practice limited partnership
Answer: C
NEW QUESTION 197
Historically, a tour guide has made monthly cash deposits averaging $10,000. Over the past three months, the monthly deposits have averaged $100,000. When the financial institution questions the increased deposits, the tour guide explains that there have been numerous conventions in town so business has increased substantially.
Which further action(s) should the financial institution take?
- A. Schedule a periodic review of activity
- B. Immediately terminate the relationship
- C. Perform further investigation, it appropriate report the activity to the authorities and consider terminating the relationship
- D. Perform further investigation, if appropriate report the activity to the authorities and place a limit on future transactions
Answer: C
NEW QUESTION 198
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. Lawyers
- B. Foreign Exchange Dealers
- C. Retail Account Holders
- D. Precious Metal Dealers
Answer: A,B,D
NEW QUESTION 199
What was cited by the Wolfsberg Group in its Statement on the Suppression of the Financing of Terrorism as being vulnerable to terrorist financing?
- A. Correspondent banking
- B. Trade finance
- C. Alternative remittance
- D. Private banking
Answer: C
NEW QUESTION 200
The bank's internal financial intelligence unit (FIU) has reviewed activity related to a politically exposed person (PEP); the activity in the account contains a large, round number, one time wire to an obscure organization. Which would not be a sufficient reason to file a SAR/STR?
- A. Wire is a large amount
- B. Maintain the bank's reputation
- C. Customer activity is unreasonable
- D. Beneficiary is largely unknown
Answer: C
NEW QUESTION 201
The Wolfsberg Principles for Private Banking list circumstances that would require additional due diligence, including activities that involve which three of these choices?
- A. Public officials, including those individuals who have or had positions of public trust
- B. igh Risk activities, involving clients and beneficial owners whose source of wealth originatesfrom activities known to be vulnerable to money laundering
- C. Foreign jurisdictions
- D. High Risk Countries, including those identified by credible sources as having inadequate Anti-Money Laundering standards
Answer: A,B,D
NEW QUESTION 202
You plan to deploy two AI applications named AI1 and AI2. The data for the applications will be stored in a relational database.
You need to ensure that the users of AI1 and AI2 can see only data in each user's respective geographic region. The solution must be enforced at the database level by using row-level security.
Which database solution should you use to store the application data?
- A. Microsoft SQL Server on a Microsoft Azure virtual machine
- B. Microsoft Azure Database for MySQL
- C. Microsoft Azure Cosmos DB
- D. Microsoft Azure Data Lake Store
Answer: A
Explanation:
Row-level security is supported by SQL Server, Azure SQL Database, and Azure SQL Data Warehouse.
References:
https://docs.microsoft.com/en-us/sql/relational-databases/security/row-level-security?view=sql-server-2017
NEW QUESTION 203
Which two factors assist a money laundering investigation that involves multiple countries? (Choose two.)
- A. Law enforcement and other authorities should have access to financial information that is pertinent to the investigation.
- B. Law enforcement and other authorities should not expedite information sharing between countries to ensure that all information is provided at the same time to avoid premature conclusions.
- C. Every country should share all their information with foreign law enforcement and government authorities to facilitate rapid investigations.
- D. Law enforcement and other authorities should be allowed to establish and utilize joint investigative teams with law enforcement in other countries.
Answer: A,D
NEW QUESTION 204
What is an essential element of Know Your Customer (KYC) standards according to the Basel Committee's Customer Due Diligence for Banks paper?
- A. A customer acceptance policy
- B. The same KYC requirements must be applied in all cases
- C. Annual staff training
- D. All completed KYC documents must be reviewed by a senior manager not involved in the account opening process
Answer: A
Explanation:
Explanation/Reference: https://www.bis.org/publ/bcbs77.pdf
NEW QUESTION 205
In many jurisdictions, financial institutions are prohibited from hiring a person who has been convicted of what type of offense?
- A. Driving while under the influence
- B. Offenses involving dishonesty
- C. Protests of government action
- D. Kidnapping
Answer: B
Explanation:
Reference:http://www.capitol.hawaii.gov/hrscurrent/vol07_ch0346-0398/HRS0378/HRS_03780003.htm(See 9th point)
NEW QUESTION 206
The vice president of the foreign correspondent banking department at a large United States bank has been notified that a foreign bank with an offshore license wants to open a correspondent account.
Which two things must the vice president acquire under the USA PATRIOT Act? (Choose two.)
- A. A list of all the customers of the correspondent bank
- B. A list of the types of businesses served by the correspondent bank
- C. The identity of 10% owners of the correspondent bank, unless it is publicly traded
- D. Information relating to the foreign bank's anti-money laundering program
Answer: C,D
NEW QUESTION 207
Which should be provided to the board of directors or designated specialized committee when reporting SARs/STRs?
- A. Names of all customers subject to SARs/STRs filed during the reported period.
- B. All possible details of SARs/STRs filed during the reported period.
- C. Statistical data regarding SARs/STRs filed during the reported period.
- D. Copies of all SARs/STRs filed during the reported period.
Answer: C
NEW QUESTION 208
A bank customer operates a fuel station as a sole proprietorship.
The customer places deposits and other credits in a business account.
The customer routinely transfers money from the business account to a brokerage account where he invests in money market securities.
The customer also routinely makes monthly transfers to a credit card and line of credit to pay off balances.
The volume of activity flowing through the business account has doubled in the past 3 months.
An internal investigator reviews business account statements and credit card activity for the past 3 months, scans media articles about the customer, and interviews the account officer about the customer and account activity.
This internal investigation did not provide an explanation for the increased activity1.
Which of the following should the anti-money laundering specialist recommend to the internal investigator?
- A. Analyze account activity for selected accounts since the accounts were opened.
- B. Review activity in all related customer accounts in the past year.
- C. Concentrate on trades made in the brokerage account.
- D. No additional steps are necessary because this was a thorough review of the activity.
Answer: C
NEW QUESTION 209
In addition to monitoring for suspicious activity, what are electronic monitoring systems also valuable for?
- A. Proving to the Board of Directors that the FIU is doing its job
- B. Meeting mandatory regulatory requirements for system implementation
- C. Highlighting the skills of the system analysts
- D. Identifying how customers are using products
Answer: B
Explanation:
Explanation/Reference:
NEW QUESTION 210
Which requirement is included in the Fourth European Union Directive on money laundering?
- A. It requires obliged entities to consider politically exposed persons as high risk for life
- B. It requires member states to enact economic sanctions against countries that do not cooperate with Financial Action Task Force recommendations
- C. It requires member countries to maintain registries of the beneficial owners of legal entities
- D. It requires obliged entities to conduct enhanced due diligence on all prepaid card holders
Answer: C
Explanation:
Explanation/Reference: https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32018L0843&from=EN
NEW QUESTION 211
You have an Azure Machine Learning experiment that must comply with GDPR regulations.
You need to track compliance of the experiment and store documentation about the experiment.
What should you use?
- A. Azure Security Center
- B. An Azure Log Analytics workspace
- C. Compliance Manager
- D. Azure Table storage
Answer: C
Explanation:
Explanation/Reference:
References:
https://azure.microsoft.com/en-us/blog/new-capabilities-to-enable-robust-gdpr-compliance/
NEW QUESTION 212
A customer has held an account at a local credit institution for 10 years. The account has received deposits twice weekly for the same amount and has never shown signs of suspect behavior. Monitoring software indicated that in the past few months the account has received several large deposits that were not in line with the account history.
When asked, the customer states she recently sold a piece of property, which is supported with a proof of sale.
Which of the following should the compliance officer do next?
- A. File a suspicious transaction report with the competent authorities.
- B. Investigate these unusual transactions further.
- C. Contact the local Financial Intelligence Unit for advice.
- D. Document reasons for not filing a suspicious transaction report.
Answer: D
Explanation:
Explanation
The decision of whether or not to file a suspicious transaction report (also known as a suspicious activity report or SAR in the United States) often involves weighing the aggravating and mitigating factors arising from the research conducted during the investigative process. The final decision should be documented and supported by the reasoning that was used to make the determination. The transaction has already been investigated which led to the requesting of the document. The document checked out and the question did not specify the document was suspicious, therefore we can conclude an STR does not need to be completed and thus should move to document the reason why an STR wasn't completed.
NEW QUESTION 213
What correspondent banking risk factor increases the risk for a Correspondent Bank?
- A. Limited product offering to customers in high-risk jurisdictions
- B. Major service provider to money service businesses
- C. Offers international funds transfer to customers
- D. Multi-national financial institution with global operations
Answer: B
NEW QUESTION 214
What is a major economic consequence of money laundering through the use of front companies?
- A. Creating a more competitive pricing environment
- B. Placing more emphasis on manufacturing
- C. Aligning management principles between criminal enterprises and legitimate businesses
- D. Weakening of the legitimate private sector
Answer: D
Explanation:
Explanation/Reference: http://people.exeter.ac.uk/watupman/undergrad/rtb/effects2.htm
NEW QUESTION 215
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