[Oct-2023] Verified ACAMS CAMS Bundle Real Exam Dumps PDF
CAMS Dumps PDF New [2023] Ultimate Study Guide
ACAMS CAMS (Certified Anti-Money Laundering Specialists) certification exam is designed for professionals who work in the field of money laundering prevention and financial crime detection. CAMS exam covers a wide range of topics such as money laundering techniques, risk assessment, compliance regulations, and investigation methods. Certified Anti-Money Laundering Specialists certification is recognized globally and is a highly respected credential in the financial services industry.
To prepare for the CAMS Exam, candidates can take advantage of ACAMS resources, such as study materials, webinars, and practice exams. Candidates can also attend CAMS Exam Preparation Seminars, which are offered by ACAMS and cover the key topics and concepts tested on the exam. With the right preparation and dedication, AML professionals can earn the CAMS certification and take their careers to the next level.
The CAMS Certification Exam is a comprehensive and challenging exam that requires extensive preparation and study. CAMS exam consists of 120 multiple-choice questions that must be completed within four hours. To be eligible to take the exam, candidates must have at least 40 hours of AML training or related work experience and must meet other eligibility requirements set by ACAMS.
NEW QUESTION # 221
Which are red flags indicating potential engagement of a bank employee in money laundering? (Select Two.)
- A. Failure to meet business goals for more than one period
- B. Providing longer than usual services for a certain customer
- C. Reluctance to take a vacation when the employee has sufficient leave
- D. Maintaining friendships with customers and going to restaurants, games, and other events
- E. Lavish lifestyle that cannot be supported by an employee's salary
Answer: D,E
Explanation:
Explanation
The two red flags indicating potential engagement of a bank employee in money laundering are A. Lavish lifestyle that cannot be supported by an employee's salary, and E. Maintaining friendships with customers and going to restaurants, games, and other events. A bank employee who has a lifestyle that cannot be supported by their salary could be receiving money from illicit activities. Similarly, if the employee is maintaining friendships and going to social events with customers, they could be receiving money in exchange for providing special services. These behaviors should be monitored closely to ensure that the employee is not engaging in activities that could be linked to money laundering.
NEW QUESTION # 222
Why do government entities around the world believe that a risk-based approach to AML/CFT compliance is a preferable prescriptive measure?
- A. It is easier for examiners to make subjective criticisms
- B. It allows the creation of hard and fast rules that must be followed
- C. It allows institutions to focus their attention on only high risk customers
- D. It is more flexible, effective and proportionate
Answer: D
NEW QUESTION # 223
Which three areas do FATF's 40 recommendations cover? Choose 3 answers
- A. International Cooperation
- B. Financial systems and their regulation
- C. The criminal justice system
- D. Prescriptive sentences for predicate offenses
Answer: A,B,C
NEW QUESTION # 224
A New York-based lawyer is interested in purchasing a luxury condo in Manhattan listed at $30 million for a client based in the Caribbean.
The client does not want to be named on the deed and wants the purchase to be made under the name of a limited liability company (LLC). The client states that the reason for this arrangement is that he is a high level government official who is concerned about his privacy if the purchase were to be made in his name.
The funds for the purchase are to be wired from several accounts in various countries.
Which two facts lead to gathering more information about this potential client before moving forward with the transaction? (Choose two.)
- A. The funds are coming from several accounts in various countries.
- B. The client is from a Caribbean country
- C. The use of an LLC to make the purchase
- D. The client is a high level government official
Answer: A,D
NEW QUESTION # 225
In which three situations is correspondent banking most vulnerable to money laundering? Choose 3 answers
- A. When allowing the correspondent bank account to be used as a payable through account (PTA)
- B. When allowing financial institutions, without proper due diligence, to access correspondent network for routing their financial transactions
- C. When allowing foreign banks to use the correspondent account to conduct large financial transactions on behalf of their customers
- D. When allowing the correspondent bank account to be used by other banks
Answer: A,D
NEW QUESTION # 226
A compliance officer is developing an anti-money laundering program for a financial institution located in a Financial Action Task Force member country. The institution conducts business with customers located in countries/jurisdictions that are not members of Financia Action Task Force. Which of the following issues should be addressed in the program?
1. The requirement to identify the beneficial owners of accounts.
2. The requirement for customer identification for the opening of new accounts.
3. The financial institution's obligation to report suspicious transactions.
4. The obligation to freeze funds involved in suspicious transactions.
- A. 1, 3, and 4 only
- B. 2, 3, and 4 only
- C. 1, 2, and 3 only
- D. 1, 2, and 4 only
Answer: C
NEW QUESTION # 227
According to the Financial Action Task Force 40 Recommendations, Designated Non-Financial Businesses and Professions include
- A. real estate agents.
- B. commodities traders.
- C. hawala operators.
- D. money services businesses.
Answer: C
NEW QUESTION # 228
Which of the following is considered a shell bank as defined by the USA PATRIOT Act?
- A. A bank run by a foreign holding company with offices and staff in an offshore jurisdiction.
- B. An Internet bank operating in the U.S. providing services worldwide.
- C. A local bank with offices in a non-cooperative jurisdiction which is subject to minimal regulatory supervision.
- D. A bank incorporated in an offshore jurisdiction without a physical presence or employees.
Answer: D
NEW QUESTION # 229
OFAC-issued regulations apply to which entities? (Choose two.)
- A. Intermediaries transacting with US banks
- B. Foreign subsidiaries of US banks
- C. Foreign banks with US customers
- D. US branches of a foreign bank
- E. Foreign import-export companies
Answer: A,B
NEW QUESTION # 230
In which two ways does a government Financial Intelligence Unit interact with public and private sectors?
(Choose two.)
- A. It receives and analyzes disclosures filed by financial and non-bank institutions
- B. It mediates disputes between financial institutions and investigative authorities
- C. It governs the methods of investigation used by competent authorities
- D. It disseminates information and the results of its analysis to competent authorities
Answer: A,D
NEW QUESTION # 231
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. Geographic Risk
- B. Credit Risk
- C. Customer Risk
- D. Transaction Risk
Answer: A,C,D
Explanation:
Reference:http://www.fatfgafi.org/media/fatf/documents/reports/RBA%20Guidance%20for%20Real%20Estate%20Agents.p df(page 20, second paragraph)
NEW QUESTION # 232
What kind of person should perform the independent testing of an institution's anti-money laundering program?
- A. A former anti-money laundering officer from a similar institution
- B. A retired government regulator or federal law enforcement officer
- C. A person who reports directly to the Board of Directors or a Board Committee
- D. A certified specialist in the anti-money laundering field
Answer: D
NEW QUESTION # 233
Which should authorities do to safeguard AML information exchanged with other countries?
- A. Use the court system to ensure confidentiality of exchanged information through court orders.
- B. Destroy the information once the investigation is complete.
- C. Require the use of non-disclosure agreements with anyone accessing the exchanged information.
- D. Protect exchanged information as they would protect similar information received from domestic sources.
Answer: C
Explanation:
Reference:
https://cfatf-gafic.org/index.php/documents/fatf-40r/406fatf-recommendation-40-other-forms-of-international-co
NEW QUESTION # 234
Sanctions screening requirements include that a financial institution should:
- A. compare customer and transaction records against periodically updated sanctions lists provided by governmental bodies.
- B. immediately freeze the bank account of an individual that appears on a sanctions list.
- C. immediately close the bank account of an entity who appears on a sanctions list.
- D. report an individual whose name appears on a sanctions list to the police.
Answer: A
Explanation:
Explanation
Compare customer and transaction records against periodically updated sanctions lists provided by governmental bodies. This is stated in the Certified Anti-Money Laundering Specialist (the 6th edition) manual on page 595, which states: "Sanctions screening requirements include that a financial institution should compare customer and transaction records against periodically updated sanctions lists provided by governmental bodies."
NEW QUESTION # 235
What describes the Black Market Peso Exchange money laundering method?
- A. A method primarily used by narcotics traffickers to transfer value back to the source country
- B. An undercover technique to identify politically exposed persons who may assist moneylaunderers
- C. The best known money laundering method used by known terrorists
- D. A method used to smuggle dollars or pesos across that border from the U.S. to Mexico, and viceversa
Answer: A
NEW QUESTION # 236
In its paper. Customer Due Diligence for Banks, the Basel Committee on Banking Supervision identified which risks on banking institutions as a result of an inadequate KYC program?
- A. Credit, operational, market, concentration
- B. Legal, reputational, operational, concentration
- C. Outsourcing, legal, concentration, reputational
- D. Security, information, local, operational
Answer: B
Explanation:
Explanation
The Basel Committee on Banking Supervision identified four risks to banking institutions as a result of an inadequate KYC program: legal, reputational, operational, and concentration. Legal risks include the potential for fines or sanctions for non-compliance with applicable laws and regulations. Reputational risks include the loss of customer confidence due to the institution's involvement in illicit activities. Operational risks include the potential for fraudulent or suspicious activity to go undetected. Finally, concentration risks involve the potential for a single customer or group of related customers to dominate the institution's operations.
NEW QUESTION # 237
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?
- A. Review peer-group clients by risk category
- B. Evaluate the distribution of downstream correspondents and identify any direct or indirect issues
- C. Understand the type and volume of accounts serviced
- D. Obtain independent audits or examination reports for "nested" relationships to determine risk levels
Answer: B
Explanation:
Explanation/Reference: http://www.qfcra.com/en-us/whatwedo/AntiMoneyLaundering/Documents/Guidance%20on%
20Correspondent%20Banking%20May%202018.pdf (7)
NEW QUESTION # 238
Which information should be gathered as part of enhanced due diligence (EDD) for a high-risk customer?
- A. Details on individuals with control over the account
- B. Plans for traveling in business trips
- C. Personal references
- D. Explanations for changes in marital status
Answer: A
Explanation:
Reference: https://sanctionscanner.com/knowledge-base/customer-due-diligence-cdd-15
NEW QUESTION # 239
What are two requirements of United States financial institutions when conducting business with an international institution as a result of the USA PATRIOT Act? (Choose two.)
- A. Visiting the head office of the international financial institution
- B. Complying with Special Measures issued under the USA PATRIOT Act
- C. Performing enhanced due diligence on shell banks
- D. Performing due diligence on correspondent accounts
Answer: B,C
NEW QUESTION # 240
Which two steps should a financial institution take when it receives a law enforcement request to keep an account open that may be associated with suspicious or criminal activity? (Choose two.)
- A. Ask for a written request from the law enforcement agency that defines the duration
- B. Maintain account records for at least five years after the request expires
- C. Stop filing suspicious transaction reports because law enforcement will be monitoring the account
- D. File a suspicious transaction report on the account owner(s)
Answer: A,B
NEW QUESTION # 241
Which of the following is the financial stage of money laundering?
- A. placement
- B. integration
- C. structuring
- D. off shoring
Answer: B
Explanation:
Explanation
Explanation/Reference:
The Integration Stage
The final stage of the money laundering process is termed the integration stage. It is at the integration stage where the money is returned to the criminal from what seem to be legitimate sources. Having been placed initially as cash and layered through a number of financial transactions, the criminal proceeds are now fully integrated into the financial system and can be used for any purpose. There are many different ways in which the laundered money can be integrated back with the criminal; however, the major objective at this stage is to reunite the money with the criminal in a manner that does not draw attention and appears to result from a legitimate source. For example, the purchases of property, art work, jewellery, or high-end automobiles are common ways for the launderer to enjoy their illegal profits without necessarily drawing attention to themselves.
NEW QUESTION # 242
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 was disclosed to include cash letters, money orders and international remittance transfers.
Which red flag identifies a heightened money laundering risk?
- A. The names provided at account opening are identified as the corporation's representative nominees
- B. Account signer's government issued identification lists addresses outside of where the branch account was opened
- 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: D
NEW QUESTION # 243
An EU Trust and Company Service Provider (TCSP) analyst notices some unusual activity while looking through a customer's financial statements and detailed general ledger. The customer is in the business of importing and exporting machineries. Which transaction indicator warrants further escalation to the compliance officer?
- A. The payment of consultancy fees to unrelated companies and service providers established in a foreign jurisdiction.
- B. Inter-company loans from the holding company to the subsidiary company to finance the shipment of machinery.
- C. The payment of virtual offices services overseas.
- D. The payment of company secretarial retainer fees to a foreign company in a tax efficient jurisdiction.
Answer: A
NEW QUESTION # 244
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