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Who should take the CAMS exam
The CAMS certification is an internationally-recognized credential that identifies persons who earn it as possessing specialized AML knowledge. AML professionals who earn the CAMS designation position themselves to be leaders in the business and to expertise professional growth. If a candidate wants significant improvement in career growth needs enhanced knowledge, skills, and talents. The CAMS certification provides proof of this advanced knowledge and skill. If a person fulfills the following eligibility requirements of the CAMS exam then he should take this exam.
- Submit supporting documents.
- Provide three professional references.
- Document a minimum of 40 qualifying credits based on education, other professional certification and professional expertise in the field.
NEW QUESTION # 74
A US casino customer has won 55,518 USD. The customer goes to the casino cashier cage to execute some transactions. Which ^transactions are an indicator of money laundering? (Select Two.)
- A. The customer transfers 100.000 USD to another personal bank account located outside the customer's resident country,
- B. The customer requests the cashing out of the winnings in a single check.
- C. The customer requests the cashing out of the winnings in checks under 10.000 USD.
- D. The customer transfers 50.000 USD to another personal bank account located in the customer's resident country.
- E. The customer transfers all the winnings to another personal bank account located outside the customer's resident country.
Answer: A,C
Explanation:
These options involve transferring funds to another country, which could indicate cross-border movement of illicit funds, and cashing out winnings in checks under 10,000 USD, which could indicate structuring to avoid reporting thresholds. The other options do not seem as suspicious or relevant to money laundering.
NEW QUESTION # 75
A periodic review of the account of a small household goods business reveals multiple shipments of goods to a country classified by the bank as high risk. They were transshipped through another country prior to the final destination. In the past three months, volumes over 25,000 units. The business has been a customer of a bank for 10 years.
Records show previous shipments to destinations primarily in Europe involving quantities of 5,000 units or less.
Recent shipments are listed as being received by the same company as the earlier shipments and payments are being received from the same originator, but the unit price of the goods is three times higher than before.
Which two red flags indicate potential trade-based money laundering? (Choose two.)
- A. The goods are shipped to a jurisdiction that the bank classifies as "high risk" for money laundering activities.
- B. The goods are transshipped through one or more jurisdictions for no apparent economic reason.
- C. The shipments of the same goods are now going to a different location.
- D. The size of the shipments appear inconsistent with the exporter's previous business activities.
Answer: A,D
NEW QUESTION # 76
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?
- A. Determine the purpose of the account
- B. Determine if the client appears on the Basel Committee on Banking Supervision's list of public officials
- C. Take all reasonable steps to check the background of the individual based on public information
- D. Investigate the source of funds
Answer: A,C,D
NEW QUESTION # 77
A suspicious transaction report has been filed on an account owned by the wife of the bank's ChiefExecutive Officer. Which of the following is the most important consideration when deciding whether to recommend closing the account?
- A. Requests from the competent authority
- B. Customer relations
- C. Chief Executive's reputational risk
- D. The institution's anti-money laundering policy
Answer: D
Explanation:
The most important consideration when deciding whether to recommend closing the account is the institution's anti-money laundering policy. This is because the policy should provide clear and consistent criteria for account closure decisions, based on the risk assessment, the nature and severity of the suspicious activity, the customer due diligence information, and the legal and regulatory obligations of the institution.
The policy should also ensure that the account closure process is independent, objective, and transparent, and that it does not compromise the confidentiality of the suspicious transaction report or the investigation.
References: =
ACAMS Study Guide for the CAMS Certification Examination, 6th Edition, Chapter 5, Section 5.4.2, page 1971 ACAMS CAMS Certification Video Training Course, Module 5, Lesson 5.4, video time 9:00-10:302 ACAMS CAMS Certification Practice Exam, Question 145, page 2863
NEW QUESTION # 78
Which of the following provides anti-money laundering specialists information related to money laundering trends?
- A. The Wolfsburg Principles
- B. FinCEN's SAR Activity Review
- C. Egmont Group's 100 Cases
- D. Financial Action Task Force Typologies
Answer: A,C,D
NEW QUESTION # 79
What describes the Black Market Peso Exchange money laundering method?
- A. A method used to smuggle dollars or pesos across that border from the U.S. to Mexico, and vice versa
- B. An undercover technique to identify politically exposed persons who may assist money launderers
- C. The best known money laundering method used by known terrorists
- D. A method primarily used by narcotics traffickers to transfer value back to the source country
Answer: D
Explanation:
The Black Market Peso Exchange (BMPE) is a trade-based money laundering technique commonly used by narcotics traffickers based in Colombia and Mexico. The central feature is the use of a money trader to ensure that the revenue from drug sales in the U.S. doesn't actually cross any borders. Instead, those dollars are used to purchase any number of legitimate commodities from unsuspecting businesses on behalf of legitimate South American businesspersons, whose legitimate imports are used to obtain pesos for the drug cartels12.
The BMPE involves six distinct steps:
* Obtaining criminal proceeds: The drug cartels sell drugs for dollars in the U.S.
* Involvement of intermediary services: The drug cartels sell the dollars to black market peso exchangers in Colombia at a discounted rate.
* Identification of complicit companies: The black market peso exchangers identify exporting companies in the U.S. and importing companies in South America that are willing to participate in the scheme.
* Placement of funds: The black market peso exchangers deposit the dollars into U.S. bank accounts or use money service businesses or other methods to transfer the funds.
* Layering of funds: The black market peso exchangers use the funds to purchase monetary instruments such as checks, money orders, or wire transfers, or to pay for the goods ordered by the South American importers.
* Integration of funds: The South American importers receive the goods or the monetary instruments and use them to pay for their imports or to sell them for pesos in the local market.
References:
* 1: Black Market Peso Exchange in Money Laundering - Financial Crime Academy
* 2: Overview - FinCEN.gov
NEW QUESTION # 80
FATF recommends the incorporation of some measures in customer due diligence (CDD) programs including:
- A. identifying the products and services and their suitability to customers.
- B. identifying the number of beneficial owners without the verification of their true identity.
- C. conducting the risk assessment of products and services.
- D. conducting ongoing due diligence on the business relationship and monitoring of transactions.
Answer: D
Explanation:
Reference:
https://www.fatf-gafi.org/media/fatf/documents/recommendations/pdfs/FATF%20Recommendations%202012.p (15)
NEW QUESTION # 81
Which of the following are the most suspicious transaction indicators related to casino activities?
1. A client requests a winnings check (cheque) in a third party's name.
2. Acquaintances bet against each other in even-money games and it appears they are intentionally losing to one of the parties.
3. A new client who is a large volume player asks the casino operator about the ability to transfer the funds to other locations in the same country.
4. A client requests the transfer of winnings to the bank account of a third party in a country without an effective anti-money laundering regime.
- A. 1, 2, and 4 only
- B. 2, 3, and 4 only
- C. 1, 2, and 3 only
- D. 1, 3, and 4 only
Answer: A
NEW QUESTION # 82
Which red flag indicates high potential for money laundering in a real estate purchase?
- A. The purchaser had a previous bankruptcy
- B. The purchaser owns a cash intensive business
- C. The purchaser is not a resident where the property is located
- D. The purchaser is a nominee
Answer: B
NEW QUESTION # 83
According to the Financial Action Task Force 40 Recommendations, Designated Non-Financial Businesses and Professionals include which entities?
- A. Real estate agents
- B. Commodities traders
- C. Hawala operators
- D. Money services businesses
Answer: A
Explanation:
Reference: http://www.fatfgafi.org/media/fatf/documents/recommendations/pdfs/FATF%20Recommendations%20
(approved%20February%202012)%20reprint%20May%202012%20web%20version.pdf (page 19, DNFBPs: customer due diligence, bulleted point (b))
NEW QUESTION # 84
A casino incorporated in an offshore location approaches a financial institution to open an account relationship. The casino operates in a country that complies with Financial Action Task Force 40 Recommendations. The casino provides documentation of beneficial ownership. According to the Financial Action Task Force 40 Recommendations, the primary concern for the financial institution prior to opening the account is to
- A. Determine whether the casino conducts on-line gaming.
- B. Verify the casino is licensed.
- C. Secure gaming insurance.
- D. Ensure the financial institution knows the casino's customers.
Answer: B
NEW QUESTION # 85
Which is often an indirect consequence of non-compliance with AML laws?
- A. Punitive fines
- B. Drop in stock value
- C. Sanctioning
- D. Criminal proceedings
Answer: B
Explanation:
Non-compliance with anti-money laundering (AML) laws and regulations can lead to severe consequences for both financial institutions and individuals. One of the indirect consequences is the imposition of punitive fines. These fines can vary based on the type of violation and the institution's willingness to address the issue.
Additionally, non-compliance may damage a company's reputation, impacting its standing in the market and potentially leading to financial losses beyond the fines themselves123.
References:
Consequences of AML Non-Compliance
Understanding, Consequences & Changes in Anti-Money Laundering
Mastering Compliance: Effective AML Controls for Non-Bank Financial Institutions AML Compliance: The Risks of Poor Practice and What Not to Miss
NEW QUESTION # 86
Which type of transactions present the highest risk?
- A. Payroll payments
- B. Wire transfers from a publicly listed company
- C. Social insurance payments
- D. Foreign exchanges
Answer: D
NEW QUESTION # 87
Which is a goal of Financial Action Task Force Regional-Style Bodies?
- A. Analyzing new or developing methods in which criminals or terrorists abuse the financial system in their region
- B. Enforcing local AML laws and regulations
- C. Setting standards to assess whether members have an adequate AML regime
- D. Executing sound AML processes in response to recommendations
Answer: C
Explanation:
Explanation
Setting standards to assess whether members have an adequate AML regime. Financial Action Task Force (FATF) Regional-Style Bodies (RSBs) are regional organizations that operate under the aegis of the FATF.
The purpose of the RSBs is to promote and facilitate the implementation of effective AML/CFT measures in the region and to facilitate international cooperation on AML/CFT [1][2]. One of the main goals of the RSBs is to set standards to assess whether member countries have an adequate AML/CFT regime and are meeting the FATF Recommendations. The RSBs also provide guidance to member countries in setting up effective AML/CFT regimes, and support them in their efforts to combat money laundering and terrorist financing.
NEW QUESTION # 88
Under which two circumstances may law enforcement be given access to a financial institution customer's financial records? (Choose two.)
- A. If law enforcement has circumstantial evidence to suspect money laundering
- B. If law enforcement serves a legal summons or subpoena
- C. If the person is named in a suspicious transaction report
- D. If the investigation of a customer is made public in the media
Answer: A,B
Explanation:
Explanation/Reference:
NEW QUESTION # 89
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