[Dec-2023] ACAMS CAMS Exam Basic Questions With Answers [Q202-Q226]

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[Dec-2023] ACAMS CAMS Exam: Basic Questions With Answers

New 2023 Realistic Free ACAMS CAMS Exam Dump Questions and Answer

ACAMS CAMS Certification Exam is a computer-based exam consisting of 120 multiple-choice questions that must be completed within three and a half hours. CAMS exam covers four main areas: AML/CFT compliance programs, money laundering risks and methods, compliance standards for correspondent banking and money services businesses, and conducting AML/CFT investigations.

NEW QUESTION 202
Which step should be taken to understand the types of financial institutions to whom the services are being offered when a correspondent bank permits “nested” relationships according to the Wolfsberg Group?

Review peer-group clients by risk category

Understand the type and volume of accounts serviced

Evaluate the distribution of downstream correspondents and identify any direct or indirect issues

Obtain independent audits or examination reports for “nested” relationships to determine risk levels

NEW QUESTION 203
A bank maintains a number of United States (U.S.) dollar correspondent accounts for foreign financial institutions. Upon a routine review of a U.S. dollar correspondent account owned by Foreign Bank A, a number of transactions appear to have been originated by Foreign Bank B outside the expected activity for this account. These transactions appear suspicious and a suspicious transaction report was filed by the compliance officer.
Which step should the compliance officer take?

File a report with the appropriate tax authorities in the jurisdictions of Foreign Bank A and Foreign Bank B

Notify senior management of the money laundering risks by allowing Foreign Bank A to maintain its U.S.
dollar correspondent account

Notify Foreign Bank A of the discovery and seek documentation supporting Foreign Bank A was collusive and a willing partner with Foreign Bank B in the activity

Notify other U.S. financial institutions who maintain U.S. dollar correspondent accounts for Foreign Bank A and Foreign Bank B in an effort to shut down the activity

NEW QUESTION 204
Which factor should a bank consider before sharing information about a customer with its broker-dealer affiliate in the case of an investigation?

Whether the broker-dealer affiliate can rely on the due diligence done by the bank

Whether there is a mutual legal assistance treaty in place between the two institutions

Whether privacy and data protection rules permit the bank to share the information with the affiliate

Whether both institutions have an account or are in the process of opening an account for the customer

NEW QUESTION 205
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?

The institution should close the account in order not to be caught in the middle of a law enforcement investigation

The institution should follow the request of the law enforcement agent and keep the account open

The institution should request a written letter from the law enforcement (agency signed by an appropriate authorized signature)

The institution should keep the account open only if doing so comports with the bank’s own AML procedures

NEW QUESTION 206
Which two statements are true regarding the European Union Money Laundering Directives? (Choose two.)

They apply to member states of the European Union

They require member states to enact laws and/or regulations to comply with the directives

They set forth non-binding best practices for financial institutions within the member states

They have extraterritorial impact and apply to states that have diplomatic relations with member states

NEW QUESTION 207
Bank A is located in Country A. A wire transfer from Bank B located in Country B is processes by Bank A, where the funds are being moved to a customer at Bank C located in Country C. The wire transfer is deemed suspicious by Bank A.
Who should Bank A file a suspicious transaction report on?

The transaction in Country A

Bank B in Country A

The transaction in Country B

Bank C in Country C

NEW QUESTION 208
Which insurance product is particularly vulnerable to money laundering?

Annuity

Casualty

Collateral

Regulated pension

NEW QUESTION 209
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.)

Conduct enhanced ongoing monitoring of the business relationship

Expedite due diligence when a PEP is pre-approved by a member of senior management

Obtain appropriate senior management approval for establishing a business relationship with a PEP from a high risk country

Take adequate measures to establish the source of wealth and source of funds which are involved in the business relationship or occasional transaction

NEW QUESTION 210
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?

The institution should close the account in order not to be caught in the middle of a lawenforcement investigation

The institution should follow the request of the law enforcement agent and keep the accountopen

The institution should request a written letter From the law enforcement ( agency signed by anappropriate authorized signature

The institution should keep the account open only if doing so comports with the bank’s ownAML procedures

NEW QUESTION 211
Which trading pattern may be indicative of money laundering in capital markets?

Free of payment asset transfer

Remittance of a round dollar amount

Trading on an account

Transacting with multiple counterparties

NEW QUESTION 212
A popular restaurant in town has begun depositing less cash than it has in prior years. In a review of the customer’s accounts, you notice that credit card receipts have increased with no .
The account officer discovers that the restaurant has installed a privately-owned automated teller machine (ATM) onsite and has begun construction on a patio dining area.
Which red flag should trigger additional investigation?

Privately-owned ATM

Lower cash deposits

Increased credit card receipts

Construction of the new patio dining area

NEW QUESTION 213
A potential client calls a broker-dealer wishing to purchase securities. The client does not appear to be concerned with any fees associated with the account or price of the securities. Further information provided by the potential client indicates the individual may have relatives working for a company in which the potential client wants to invest. Which type of activity is the potential client attempting to commit?

Transfer of value to relatives

Usage as a deposit account

Usage of insider information

Transfer funds to a third-party

NEW QUESTION 214
A bank employee reviews wire transactions looking for indications of wire stripping.
Which two actions should the employee take to complete appropriate bank procedures? (Choose two.)

Compare the wire transaction as it enters and after it leaves the bank

Check for suspicious phrases usually used to conceal originator or beneficiary identity

Identify large incoming wire transactions received on behalf of a foreign client with no explicit reason

Identify wire transaction activity to or from a financial institution located in a higher risk jurisdiction

NEW QUESTION 215
Which red flag should a compliance officer prioritize first for investigation?

A loan is paid off in full with cash after the sale of the vehicle that was used as collateral for the loan.

Several cross-border transfers are received and immediately wired to another beneficiary.

A customer has 20 monthly transactions that are repetitive but less than $500 USD per transaction.

A convenience store cashes government checks for its customers in amounts less than $1,000 USD per day.

NEW QUESTION 216
An anti-money laundering expert is hired by a new Internet bank to assess the money laundering threat to the bank. What is the most important recommendation for the expert to make given it is an on-line bank?

The bank should limit the amount of money which can be processed per transaction

The bank should ensure that prospective new customers can be properly identified

The bank should set up automated programs to analyze transactions for money laundering activity

The bank should ensure that a firewall is set up to protect the transactions

NEW QUESTION 217
A non-U.S. bank wants to open an account at Bank A, which is a U.S.-based bank.
Which information must Bank A obtain under the USA PATRIOT Act?

A complete client list from the non-U.S. bank

The identity of owners and percentage of ownership of the non-U.S. bank

The structure and identity of the management team at the non-U.S. bank

The details of the non-U.S. bank’s anti-money laundering compliance training program

NEW QUESTION 218
A retail bank has just acquired a credit card business. The bank’s anti-money laundering policy requires that new employees are trained within 30 days of their hire date and refresher training is delivered to all employees on an annual basis.
Is the bank’s existing anti-money laundering training adequate to be delivered to employee of the newly acquired credit card business?

Yes, the existing training covers the bank’s policies, procedures, and processes.

No, anti-money laundering training needs to be delivered face-to-face for credit card businesses.

No, anti-money laundering training needs to be tailored and focused on the risks specific to the business.

Yes, the existing training covers the anti-money laundering regulations that the bank is required to follow.

NEW QUESTION 219
Historically, which of the following vehicles is most often used to hide beneficial ownership?

an offshore company

a professional association

a limited liability partnership

a charitable organization

NEW QUESTION 220
A law enforcement agency is reviewing a suspicious transaction report (STR) filed by a financial institution for suspicious activity on a client’s account.
Subsequently, the agency requests further information.
Which supporting documentation might the law enforcement agency request from the institution to facilitate its investigation?

Previously filed STRs on the same customer

Account opening documents and account statements

Copies of promotional materials sent to the customer

A copy of the institution’s STR policy and procedures

NEW QUESTION 221
A financial institution files a suspicious transaction report on a customer as the result of a high volume of large currency deposits to pay off a loan. A law enforcement officer calls the anti-money laundering officer to discuss the suspicious transaction report. Which of the following is the anti-money laundering officer legally permitted to do?
1. Discuss any aspects of the reported activity.
2. Provide copies of the customer’s loan documents.
3. Explain the customer’s loan payment history.
4. Send the deposit documents referenced in the suspicious transaction report.

1 and 2 only

1 and 4 only

2 and 3 only

2 and 4 only

NEW QUESTION 222
Which three circumstances are indicators for defining a customer as required additional diligence according to the Wolfsberg Principles on Private Banking? Choose 3 answers

Persons residing in a having funds from countries with inadequate AML standards

Persons engaged in business activities known to be susceptible to money laundering

Persons who receive funds from a correspondent banking relationship

Persons determined to be Politically Exposed Persons (PEPs)

NEW QUESTION 223
In May 2002, the Wolfsberg Principles on Private Banking were revised and included a section that prohibits the use of internal non-client accounts in a manner that would prevent officials from appropriate monitoring movements of funds or keep clients from being linked to the movement of funds on their behalf.
What is another name for these internal, non-client accounts?

Trust accounts

Correspondent accounts

Concentration accounts

Pay through accounts

NEW QUESTION 224
Which three are the most commonly used risk criteria?

Country Risk

Customer Risk

Reputation Risk

Product and Service Risk

NEW QUESTION 225
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.

NEW QUESTION 226
Which action should financial institutions with cross border correspondent banking activity be required to perform according to the Financial Action Task Force 40 Recommendations?

Gather a list of their politically exposed customers

Identify natural persons who own or control more than 5%

Obtain senior management approval before establishing the relationship

Obtain a third party independent review of the respondent’s anti-money laundering program

The CAMS exam is designed to test the candidates’ knowledge of AML laws, regulations, and best practices, including customer due diligence, suspicious activity reporting, sanctions screening, risk assessment, and compliance monitoring. CAMS exam consists of 120 multiple-choice questions, and candidates have four hours to complete it. The passing score for the exam is 75%.

Guaranteed Success in CAMS Certification CAMS Exam Dumps: https://www.prepawaypdf.com/ACAMS/CAMS-practice-exam-dumps.html

[Dec-2023] ACAMS CAMS Exam Basic Questions With Answers [Q202-Q226]

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