Updated Dec-2023 Official licence for CAMS Certified by CAMS Dumps PDF
Grab latest Amazon CAMS Dumps as PDF Updated on 2023
The CAMS Exam is a comprehensive test that covers a wide range of topics related to AML, including federal and international AML laws and regulations, financial crimes, compliance programs, and risk assessments. CAMS exam consists of 120 multiple-choice questions that must be completed within four hours. Candidates must answer at least 75% of the questions correctly to pass the exam and earn the CAMS certification.
NEW QUESTION # 201
A compliance officer at an insurance company has been reviewing the transaction activity of several clients.
Which transaction is considered a red flag for potential money laundering?
- A. A client paid the quarterly life insurance premium using money orders from two different banks.
- B. A corporation owns several affiliates and recently opened separate group life insurance policies for each of the affiliates.
- C. A client from a high-risk jurisdiction recently purchased property insurance for a real-estate development.
- D. A client established a $100,000 charitable annuity with a non-profit organization that provides health and safety assistance internationally.
Answer: D
NEW QUESTION # 202
Which should authorities do to safeguard AML information exchanged with other countries?
- A. Protect exchanged information as they would protect similar information received from domestic sources.
- B. Require the use of non-disclosure agreements with anyone accessing the exchanged information.
- C. Destroy the information once the investigation is complete.
- D. Use the court system to ensure confidentiality of exchanged information through court orders.
Answer: B
Explanation:
Reference:
https://cfatf-gafic.org/index.php/documents/fatf-40r/406fatf-recommendation-40-other-forms-of-international-co
NEW QUESTION # 203
What indicates potential money laundering activity by a lawyer?
- A. A lawyer's trust account regularly receives wire transfers from unknown remitters in a high risk country and immediately redirects the same funds to the same remitters account in a low risk country
- B. A lawyer's account in a low risk country receives a bank draft from another lawyer firm in a high risk country
- C. A lawyer's account in a high risk country receives a cash deposit of an amount that is considerable below the reporting threshold
- D. A lawyer's trust account receives a large value wire transfer from a publicly listed life insurance company and then immediately transfers the same funds out to an unknown individual in a low risk country
Answer: A
NEW QUESTION # 204
A remittance company received a money order from a senior political figure m the Philippines to transfer a large sum of money to a charity group in the Philippines. A review of the charity group revealed a director having dose ties with a known terrorist group primarily financed through kidnapping and extortion.
What is a key risk indicator associated with terrorism financing?
- A. There is a link between the charity group and a known terrorist group
- B. A large sum sent by money order to a charity
- C. There is no risk relating of terrorism financing when the charity group is operating legitimately inthat country
- D. The sender is a Political Exposed Person (PEP) and should be subject to enhanced due diligence
Answer: A
NEW QUESTION # 205
Which action should an FIU consider taking when it has information that might be useful to another FIU?
- A. Supply the information to the other FIU spontaneously as soon as the relevance of sharing the information is identified
- B. Request approval from the Egmont Group prior to sharing the information with the other FIU
- C. In accordance with Wolfsberg guidelines, submit the information to the other FIU in written form
- D. Take no action until contacted by the other FIU
Answer: A
NEW QUESTION # 206
Financial Action Task Force (FATF)-style regional bodies are created and obliged to understand the inherent money laundering and terrorist financing risks in the region of the world they serve.
What is one of the methods they use to understand these risks?
- A. They conduct global research on money laundering and terrorist financing trends and report their findings in their own typologies report
- B. They require participating financial institutions of their members to file suspicious transaction reports to the regional body
- C. They conduct regional-level research and analysis of the money laundering and terrorist financing methods and trends using standards and templates used for FATF typologies reports
- D. They require member countries to develop statistical metrics over money laundering and terrorist financing crimes
Answer: B
NEW QUESTION # 207
An anti-money laundering specialist at a financial institution has received a legal request to provide all transaction records for a specific individual since 2004. Which of the following item s should be delivered?
- A. Signature cards from accounts opened by that individual since 2004.
- B. Monthly statements and transaction activities for that individual since 2004.
- C. All wire transfers for that individual since 2004.
- D. All security trading activities for that individual since 2004.
Answer: B,C,D
NEW QUESTION # 208
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. Take adequate measures to establish the source of wealth and source of funds which are involved in the business relationship or occasional transaction
- C. Expedite due diligence when a PEP is pre-approved by a member of senior management
- D. Obtain appropriate senior management approval for establishing a business relationship with a PEP from a high risk country
Answer: A,D
NEW QUESTION # 209
Which three should real estate agents include in the criteria to assess their company's potential money laundering and terrorist financing risks when implementing a reasonable risk-based approach?
- A. Credit Risk
- B. Customer Risk
- C. Transaction Risk
- D. Geographic Risk
Answer: B,C,D
Explanation:
Reference:
http://www.fatf-gafi.org/media/fatf/documents/reports/RBA%20Guidance%20for%20Real%20Estate%20Agents (page 20, second paragraph)
NEW QUESTION # 210
When should new business products to evaluate for AML concerns?
- A. Before they are launched into the market
- B. At the time of the next enterprise risk assessment
- C. After they have been implemented so there is empirical data to review
- D. On an annual basis
Answer: A
NEW QUESTION # 211
What is an example of the integration stage of money laundering involving a bank or another deposit-taking institution?
- A. Directing third parties to exchange illicit cash for negotiable instruments
- B. Wiring illicit funds from an account at one bank to an account at another bank
- C. Using illicit funds that had previously been deposited to purchase a luxury vehicle
- D. Depositing illicit funds into an account set up for a front company
Answer: C
NEW QUESTION # 212
How does a regulatory body typically obtain international assistance in a money Laundering inquiry?
- A. By contacting the FATF, Organization for Economic Co-operation and Development, or otherinternational organizations and seeking their intervention
- B. By submitting a request for overseas assistance to the corresponding supervisory body
- C. By filing a request under Egmont guidelines
- D. By communicating with the Head of Compliance for the financial institution
Answer: B
NEW QUESTION # 213
Which payment method for purchasing luxury items is a red flag for potential money laundering?
- A. Cash
- B. Credit card
- C. Personal loan
- D. Wire transfer
Answer: A
Explanation:
Explanation
According to the Financial Action Task Force (FATF), the use of large amounts of cash is a common method for money launderers to move illicit funds [1]. Purchasing luxury items with cash can indicate an attempt to convert illegal funds into tangible assets that can be easily resold or moved across borders. As a result, businesses that deal with luxury items are required to implement enhanced due diligence measures, including monitoring transactions involving large amounts of cash [1].
Reference: [1] Financial Action Task Force. (2013). Money Laundering & Terrorist Financing Through the Real Estate Sector. https://www.fatf-gafi.org/media/fatf/documents/reports/ML-TF-through-real-estate.pdf
NEW QUESTION # 214
Which is a red flag for funds transfers?
- A. Funds transfers are repeatedly sent to the same beneficiary out of line with the business purpose.
- B. Funds transfers are to a higher-risk geographic location with a known supplier within the same industry as the originator.
- C. Funds transfers are repetitive and within expected patterns.
- D. Funds transfers are received in numerous small quantities from entities that are in related industries.
Answer: C
Explanation:
Reference: https://www.fmu.gov.pk/docs/Red-flags-for-banks.pdf
NEW QUESTION # 215
What does the Financial Action Task Force 40 Recommendations address on transparency of beneficial ownership?
- A. Legal persons and arrangements
- B. Correspondent banking
- C. Gatekeepers
- D. Payable through accounts
Answer: A
Explanation:
Reference: https://www.fatf-gafi.org/documents/news/transparency-and-beneficial-ownership.html
NEW QUESTION # 216
A compliance officer identifies a potentially significant risk in a popular financial product. Further investigation reveals there is no mitigating control.
Which course of action should the compliance officer take?
- A. Immediately cease providing the product and only offer it after effective permanent mitigation is implemented
- B. Implement a temporary mitigation that enables effective management of the risk until a permanent plan can be developed
- C. Launch a long-term project to remediate the control deficiency
- D. Note the risk and address it during the next round of policy and procedure review
Answer: B
Explanation:
Explanation/Reference:
NEW QUESTION # 217
A relationship manager in a bank has had a private banking customer for 10 years. The customer has business accounts and investments and seeks advice on the creation of a company overseas. The relationship manager refers the customer to the commercial banking manager and vouches for the customer. Which of the following risk factors is the most important?
- A. The proposed offshore jurisdiction is known for its strong privacy laws limiting access to customer information by law enforcement.
- B. Entities that are to receive funds from this company are located in the same country.
- C. The customer does not want to provide more information than when the first account was opened. C.
The company wants to transfer funds in large, even amounts.
Answer: C
NEW QUESTION # 218
In which two ways does a government Financial Intelligence Unit interact with public and private sectors?
(Choose two.)
- A. It governs the methods of investigation used by competent authorities
- B. It disseminates information and the results of its analysis to competent authorities
- C. It mediates disputes between financial institutions and investigative authorities
- D. It receives and analyzes disclosures filed by financial and non-bank institutions
Answer: B,D
NEW QUESTION # 219
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. Private banking
- B. Alternative remittance
- C. Correspondent banking
- D. Trade finance
Answer: B
NEW QUESTION # 220
A quarterly review is conducted on a retail customer's account at a bank located in a jurisdiction with currency reporting thresholds. A number of large deposits of financial instruments drawn on other institutions in amounts under thresholds were noted. This activity did not fit the account's historical profile. A suspicious transaction report will most likely be filed if what also occurred?
- A. The deposited financial instruments were sequentially numbered
- B. Four deposits were made during this period that exceeded the thresholds
- C. The customer purchased financial instruments exceeding the threshold on three occasions
- D. The customer has defaulted on a large loan with the bank
Answer: A
NEW QUESTION # 221
What does the Egmont Group's support for its members include?
- A. Issuing due diligence models for financial institutions
- B. Issuing strategic products for law enforcement agencies and FIUs on topics of international interest
- C. Expanding and systematizing international cooperation in the reciprocal exchange of information
- D. Expanding the ability of FIUs to enforce laws and exchange information globally to combat money laundering and terrorist financing
Answer: C
Explanation:
Reference: https://egmontgroup.org/en/content/membership
NEW QUESTION # 222
Who has the day-to-day responsibility of communicating and reinforcing the established anti-money laundering compliance culture and program?
- A. Board of directors
- B. Business lines
- C. Compliance officer
- D. Senior management
Answer: C
Explanation:
Reference:
http://files.acams.org/pdfs/English_Study_Guide/Chapter_4.pdf
NEW QUESTION # 223
Which of the following is among the Financial Action Task Force criteria defining non-cooperative countries and territories?
- A. inadequate rules for the licensing and creation of financial institutions, including assessing backgrounds of managers and beneficial owners
- B. the presence of bank secrecy provisions reasonably balanced against the government's need for information
- C. effective laws regarding multiple sources of beneficial owner identification by a financial institution
- D. the establishment of a system for reporting "unusual" transactions, instead of "suspicious", as mentioned in the Financial Action Task force 40 Recommendations
Answer: A
NEW QUESTION # 224
Which principles should be included in a FATF-Style Regional Body (FSRB) update? (Choose two.)
- A. Identify jurisdictions with weak AML/CFT regimes
- B. Protect the reputation and standing of FATF
- C. Issue country-specific Mutual Evaluation reports
- D. Establish AML/CFT standards and typologies
- E. Address AML/CFT technical assistance of individual members
Answer: C,D
NEW QUESTION # 225
......
The CAMS exam is a comprehensive test that covers a wide range of topics related to AML, including the history of money laundering, the international regulatory environment, risk assessment, customer due diligence, and transaction monitoring. CAMS exam is designed to assess the knowledge and skills of AML professionals and to ensure that they have the necessary expertise to detect and prevent money laundering activities.
To earn the CAMS certification, candidates must pass a rigorous exam that covers a wide range of topics related to AML, including the detection and prevention of money laundering, terrorist financing, and other financial crimes. CAMS exam consists of multiple-choice questions and is administered online or in-person at testing centers around the world. Candidates must also meet certain educational and experience requirements to be eligible to take the exam.
Latest CAMS Exam Dumps ACAMS Exam from Training: https://www.testsdumps.com/CAMS_real-exam-dumps.html
Newly Released CAMS Dumps for CAMS Certification Certified: https://drive.google.com/open?id=1y8GysGDRWTLkrSOD8ZYqCCV0GQMGlQxE
