ACAMS CAMS Questions and Answers Guarantee you Oass the Test Easily [Q11-Q31]

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ACAMS CAMS Questions and Answers Guarantee you Oass the Test Easily

Share Latest CAMS DUMP with 865 Questions and Answers

The CAMS exam covers a wide range of topics related to AML, including money laundering trends and methods, risk assessment, customer due diligence, suspicious activity reporting, and sanctions compliance. CAMS exam is designed to measure a candidate’s knowledge and understanding of these topics, as well as their ability to apply this knowledge in real-world situations.

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.

QUESTION 11
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

QUESTION 12
Which of the following should an anti-money laundering specialist consider the most serious deficiency when detected during a regulatory audit of the anti-money laundering program?

The compliance officer fails to have on-going meetings with upper management to keep them apprised of current money laundering trends.

The company’s anti-money laundering manual has not been updated to reflect a recent internal control enhancement.

The company has failed to download the most recent regulation from the Financial Intelligence Unit web site.

The company has not implemented an anti-money laundering training program.

QUESTION 13
What describes the Black Market Peso Exchange money laundering method?

The best known money laundering method used by known terrorists

An undercover technique to identify politically exposed persons who may assist money launderers

A method primarily used by narcotics traffickers to transfer value back to the source country

A method used to smuggle dollars or pesos across that border from the U.S. to Mexico, and vice versa

QUESTION 14
A local law enforcement officer, who is conducting a criminal investigation, requests information about a customer.
Which two actions should the bank take? (Choose two.)

Close the account immediately

File a suspicious transaction report

Monitor the account for suspicious activity

Review the money laundering risk posed by the account

QUESTION 15
Following a recent exercise which explained how a correspondent banking operation could be used by money launderers, an anti-money laundering specialist decided to re-write the due diligence procedures for entering into agreements with foreign financial institutions. Which of the following information should be included to establish a rigorous “Know Your Respondent” procedure?
1.Respondent’s management, nature of license, and major business activity.
2. Computer equipment and software capability.
3. The quality of supervision in the home country.
4. Respondent’s location, in particular the existence of a real physical presence.

1, 2, and 3 only

1, 2, and 4 only

1, 3, and 4 only

2, 3, and 4 only

These are the information that can help the correspondent bank to assess the risk profile, the regulatory compliance, and the operational capacity of the respondent bank, and to verify its identity and legitimacy. The correspondent bank should obtain and verify the following information about the respondent bank:
* Respondent’s management, nature of license, and major business activity. This can help the correspondent bank to understand the governance, the legal status, and the core functions of the respondent bank, and to evaluate its reputation, integrity, and competence.
* The quality of supervision in the home country. This can help the correspondent bank to determine the level of oversight and regulation that the respondent bank is subject to, and to identify any potential gaps or weaknesses in the anti-money laundering and counter-terrorist financing (AML/CTF) framework of the home country.
* Respondent’s location, in particular the existence of a real physical presence. This can help the correspondent bank to verify the actual existence and operation of the respondent bank, and to avoid dealing with shell banks or banks located in high-risk or non-cooperative jurisdictions.
The other option is not necessarily information that should be included to establish a rigorous “Know Your Respondent” procedure, although it may have some relevance or importance depending on the circumstances and the nature of the correspondent relationship. Option 2 describes computer equipment and software capability, which may be useful to assess the technical and operational compatibility and efficiency of the respondent bank, but it is not essential to evaluate its risk or compliance level.
ACAMS CAMS Certification Video Training Course – 6th Edition1
Exam CAMS: Certified Anti-Money Laundering Specialist (the 6th edition)2 ACAMS CAMS Study Guide – 6th Edition, Chapter 7, pages 154-155
https://www.acams.org/wp-content/uploads/2019/09/ACAMS-CAMS-Study-Guide-6th-Edition-Chapter-7.pdf

QUESTION 16
The AML compliance officer of a financial institution (Fl) has been advised that the institution is being investigated by the country’s financial intelligence unit (FIU). What should the AML compliance officer do?
(Select Two.)

inform senior leadership and the board of the investigation.

Share investigation results with other FIs to help them prepare.

Monitor the progress of the investigation by keeping clear records.

Send an informative communication to all employees about the investigation.

Provide all information to the FIU as soon as possible to avoid delays.

QUESTION 17
Which of the following activities is most likely associated with a lawyer participating in a money laundering scheme?

Frequently travels to countries considered tax havens.

Engages clients with high-net worth in foreign countries.

Represents persons accused of crimes against financial institutions.

Creates corporate entities to disguise true beneficial ownership of clients.

QUESTION 18
An institution has made the decision to exit a client relationship due to anti-money laundering concerns. Prior to starting the close out process, the institution receives a written request from a law enforcement agency to keep the account open. The client is the subject of an ongoing investigation and law enforcement wants the institution to continue to monitor the account and report any suspicious activity.
What is a primary consideration the institution should keep in mind when deciding whether to agree to this request?

The anticipated cost of complying with the law enforcement request

The number of suspicious transaction reports previously filed on the client

The fact that the institution has a solid record in complying with law enforcement requests

Whether the institution can continue to meet its regulatory obligations with the accounts open

QUESTION 19
When creating an anti-money laundering program for a foreign bank with branches in the United States, which of the following are included among the four minimum elements required under the USA PATRIOT Act?
1. The development of a Know Your Customer program.
2. An ongoing employee training program.
3. The designation of a compliance officer.
4. An independent audit function to test the program.

1, 2, and 3 only

1, 2, and 4 only

1, 3, and 4 only

2, 3, and 4 only

According to the USA PATRIOT Act, the four minimum elements required for an anti-money laundering program for a foreign bank with branches in the United States are:
An ongoing employee training program. This is to ensure that the employees are aware of the anti-money laundering policies and procedures, the legal and regulatory requirements, the red flags and indicators of suspicious activity, and their roles and responsibilities in detecting and reporting money laundering and terrorist financing.
The designation of a compliance officer. This is to ensure that there is a person responsible for overseeing the implementation and effectiveness of the anti-money laundering program, ensuring compliance with the applicable laws and regulations, and liaising with the regulators and law enforcement agencies.
An independent audit function to test the program. This is to ensure that the anti-money laundering program is periodically reviewed and evaluated by an independent and qualified auditor, who can assess the adequacy and effectiveness of the program, identify any weaknesses or deficiencies, and recommend corrective actions or improvements.
The development of internal policies, procedures, and controls. This is to ensure that the foreign bank has a written and documented anti-money laundering program that establishes the standards, guidelines, and processes for preventing, detecting, and reporting money laundering and terrorist financing, and that the program is consistent with the risk profile and business activities of the foreign bank.
The development of a Know Your Customer program is not a minimum element required under the USA PATRIOT Act, although it is a recommended best practice and may be required by other laws or regulations.
References:
CAMS Study Guide – 6th Edition, Chapter 5, pages 141-142
CAMS Certification Exam Outline, Domain 2, Task 2.2, Skill 2.2.1
Anti-Money Laundering Initiatives Under the USA Patriot Act, FindLaw, March 2008
[The U.S. PATRIOT Act and AML: What You Need to Know], Dow Jones Risk & Compliance, June
2020

QUESTION 20
A local law enforcement officer notifies the bank compliance officer that he is working on an insurance fraud scheme that appears to be running transactions using the account of a bank employee. The law enforcement officer refers to a kiting suspicious transaction report filed by the compliance officer and requests further information.
What action should the compliance officer take?

Inform the board of directors

Call the employee and demand an explanation

Allow access to the bank’s documents immediately

Provide the information to the law enforcement in response to a formal written request

QUESTION 21
Which two actions should Financial Intelligence Units (FIUs) take when submitting a request to another FIU?
(Choose two.)

Send the same request to all FIUs

Disclose the reason and purpose for the request

Provide feedback on how the information was used

Make best efforts to provide complete and factual information

QUESTION 22
During a law enforcement investigative interview regarding potential money laundering, the suspect starts making assertions and statements that the investigator believes are false.
How should the investigator respond?

Inform the suspect that deception is obvious and continue the interview

Advise the suspect that the interview will be terminated if there is suspicion of deception

Direct the interview in another direction until there is better rapport before returning back to the troubling question

Ask question of a material nature about the suspected false statements without revealing the suspected deception

QUE According to the ACAMS Study Guide, one of the skills of an effective AML investigator is to conduct investigative interviews using appropriate techniques and methods1. One of the techniques is to use open-ended questions that elicit detailed responses from the interviewee, and to avoid leading or suggestive questions that may reveal the investigator’s assumptions or suspicions1. Therefore, the best option is to ask question of a material nature about the suspected false statements without revealing the suspected deception, as this would allow the investigator to gather more information and evidence, and to test the consistency and credibility of the interviewee’s answers.
The other options are not advisable or effective, because:
* A. Informing the suspect that deception is obvious and continuing the interview is not a good strategy, because it may antagonize the suspect and make them less cooperative or more defensive. It may also alert the suspect to the investigator’s knowledge and sources, and give them an opportunity to change or modify their story2.
* B. Advising the suspect that the interview will be terminated if there is suspicion of deception is not a good strategy, because it may create a negative impression of the investigator and the investigation, and it may discourage the suspect from providing any useful information. It may also imply that the investigator has insufficient evidence or authority to pursue the case2.
* C. Directing the interview in another direction until there is better rapport before returning back to the troubling question is not a good strategy, because it may waste time and resources, and it may lose the focus and momentum of the investigation. It may also signal to the suspect that the investigator is not confident or competent, and it may give the suspect a chance to prepare or rehearse their answers2.
References:
1: ACAMS Study Guide, 6th Edition, Chapter 4: Conducting and Supporting the Investigation, page 105. 2: 46 AML Investigator Interview Questions (And Sample Answers)

QUESTION 23
When a government imposes economic sanctions on a target the purpose is to:

protect the rights of the citizens of the state target against their own government and improve financial stability in the region.

indicate that the use of military force is likely unless the state or non-state target complies with the government’s

interests encourage non-governmental organizations to increase the provision of humanitarian and charitable aid to the target

alter the behavior of the state or non-state target that threatens the interests of that government or violates international norms

QUESTION 24
Which of the following facilitates law enforcement agents obtaining evidence from authorities in a foreign country relating to criminal activity?

Mutual Legal Assistance Treaties

USA PATRIOT Act Communications System

The World Wide Network of Information Sharing

The International Agreement for Mutual Assistance

QUESTION 25
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?

Launch a long-term project to remediate the control deficiency

Note the risk and address it during the next round of policy and procedure review

Immediately cease providing the product and only offer it after effective permanent mitigation is implemented

Implement a temporary mitigation that enables effective management of the risk until a permanent plan can be developed

QUESTION 26
The ultimate goal of economic sanctions is to:

protect the reputation of the country.

prevent terrorists from profiting from trade.

protect national security.

reduce the profits of sanctioned countries.

QUESTION 27
Combating the Financing of Terrorism (CFT)]
Which are common types of economic sanctions? (Choose three.)

Targeted sanctions

Technological sanctions

SWIFT network sanctions

Sectoral sanctions

Supervisory sanctions

Comprehensive sanction

Economic sanctions are penalties imposed by a country or a group of countries on another country, entity, or individual for foreign policy or security purposes. There are different types of economic sanctions, depending on the scope, objective, and mechanism of the sanctions. Some of the common types are:
* Targeted sanctions: These are sanctions that aim to minimize the adverse effects on the general population and the environment, and focus on specific individuals, entities, sectors, or activities that are responsible for or involved in the undesirable behavior or conduct. Targeted sanctions can include travel bans, asset freezes, arms embargoes, and trade restrictions on certain goods or services. For example, the United States and the European Union have imposed targeted sanctions on various officials, entities, and sectors in Russia, Iran, Syria, Venezuela, and other countries for human rights violations, nuclear proliferation, terrorism, corruption, and other reasons.
* Sectoral sanctions: These are sanctions that target a specific sector or industry of the economy of the sanctioned country, such as energy, finance, defense, or transportation. Sectoral sanctions aim to disrupt the economic activity and revenue of the targeted sector, and to create pressure on the government or regime to change its policies or behavior. For example, the United States has imposed sectoral sanctions on Iran’s oil, gas, petrochemical, and automotive industries, as well as its central bank and other financial institutions, to curb its nuclear program and support for regional proxies.
* Comprehensive sanction: These are sanctions that impose a total or near-total ban on trade, investment, and other economic relations with the sanctioned country. Comprehensive sanctions are the most severe and broadest form of economic sanctions, and they aim to isolate the country from the global market and cause severe economic hardship and social unrest. Comprehensive sanctions are often accompanied by diplomatic isolation and military intervention. For example, the United States has maintained a comprehensive embargo on Cuba since 1962, prohibiting most trade, travel, and financial transactions with the island nation, as well as supporting its political opposition and dissidents.
:
What Are Economic Sanctions?, Council on Foreign Relations
Types of Economic Sanctions, Profolus
Economic sanctions, Wikipedia
How Economic Sanctions Work, Investopedia
CAMS Certification Package – 6th Edition, ACAMS
CAMS Certifications: How to Get CAMS Certified, ACAMS
Reference: https://www.cfr.org/backgrounder/what-are-economic-sanctions

QUESTION 28
the Financing of Terrorism (CFT)]
OFAC-issued regulations apply to which entities? (Choose two.)

Intermediaries transacting with US banks

Foreign banks with US customers

Foreign subsidiaries of US banks

US branches of a foreign bank

Foreign import-export companies

QUESTION 29
Which of the following statements is true regarding Office of Foreign Assets Control (OFAC) sanctions?
(Select Two.)

Sanctions can only be placed on certain individuals in foreign countries as designated by OFAC

Blocked funds must be placed into an interest-bearing account on a financial institution’s books

Sanctions can be either comprehensive or selective using the blocking of assets and trade restrictions to accomplish foreign policy and national security goals

OFAC sanctions automatically expire after five years unless renewed by Congress

QUESTION 30
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 which of the following also occurred?

The customer has defaulted on a large loan with the bank.

The deposited financial instruments were sequentially numbered.

Four deposits were made during this period that exceeded the thresholds.

The customer purchased financial instruments exceeding the threshold on three occasions.

QUESTION 31
Whichsection of the USA PATRIOT Actrelates toforfeiture of funds and allows for extraterritorial reach?

Section319(a)

Section314(a)

Section319(b)

Section314(b)

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ACAMS CAMS Questions and Answers Guarantee you Oass the Test Easily [Q11-Q31]

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