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Free ACAMS CAMS Exam Questions and Answer
Recertification
Individuals must get recertified every three years if they wish to maintain their CAMS certification. To get recertified, individuals must have maintained their ACAMS membership, provide proof of having continued their professional education, and submit an online application along with a recertification fee.
Career Path
After obtaining this specialist-level CAMS certification, individuals may go on to get more advanced CAMS designations by ACAMS, which are offered in three fields. Thus, they are the Advanced CAMS - Audit, Advanced CAMS - Financial Crimes Investigations, and Advanced CAMS - Risk Management.
NEW QUESTION 85
What is the goal of the Egmont Group in providing a forum for Financial Intelligence Units (FIUs) around the world?
- A. To improve communication with law enforcement in the fight against money laundering and the financing of terrorism and to foster the implementation of domestic programs in this field.
- B. To provide a forum for FIUs to improve cooperation in the fight against money laundering and the financing of terrorism and to foster the implementation of domestic programs in this field.
- C. To improve cooperation with state and federal governments in the fight against money laundering and the financing of terrorism and to foster the implementation of domestic programs in this field.
- D. To improve international laws to combat money laundering and the financing of terrorism and foster the implementation of domestic programs.
Answer: B
Explanation:
Explanation/Reference: https://en.wikipedia.org/wiki/Egmont_Group_of_Financial_Intelligence_Units
NEW QUESTION 86
A customer has held an account at a bank and has lived locally for over 25 years. Historically he has come into the bank monthly to deposit a $1,500 retirement check from the company where he worked. He is well known at the bank and often brings the staff cookies. Over the past four months, he has come into the bank every Monday, Wednesday, and Thursday to make $3,000 cash deposits into his account. A review of his account shows that an $8,500 check made out to cash clears his account each week. The bank has decided to file a suspicious transaction report (STR).
What is the important fact to include in the STR?
- A. The customer's work history and the amount of his monthly retirement check
- B. The fact that the account holder is well known to the bank staff
- C. The fact that the customer has lived in the area and has banked at this bank for 25 years
- D. The recent change in the timing of deposits and withdrawals in the account
Answer: A
NEW QUESTION 87
An institution receives a request for credit from a local company that has been a client for many years. The information provided by the company indicates that its assets have increased substantially with the addition of several new subsidiaries. Further research performed by the institution indicates the new subsidiaries are recently created shell companies.
Could this indicate potential money laundering?
- A. Yes, shell companies are typically created to manage tax liabilities.
- B. Yes, the shell companies could have been created to hide beneficial ownership.
- C. No, it is normal for a business to diversify by creating shell companies.
- D. No, the company has been a client for many years.
Answer: A
NEW QUESTION 88
A client is a wholesale auto business that operates as a used car lot. The client regularly ships vehicles internationally. In a four-month period, the client received wires totaling $ 1,250,000 from a dealer in Benin in West AfricA. All wires originated from Benin and were in increments of $50,000.
Account debits made to the account were payable to various transport companies. All incoming checks reference various vehicles purchased. Dock shipping receipts produced by the client to support account activity identify the vehicles but cannot easily be tied to the wires receives.
What is the suspicious behavior?
- A. Account debits are payable to transport companies
- B. Vehicles are regularly shipped internationally
- C. The dock shipping receipts match the vehicles
- D. Wires received are in large, even dollar amounts
Answer: D
NEW QUESTION 89
Which statement identifies one of the duties of a government Financial Intelligence Unit?
- A. It prosecutes suspected money launderers and terrorist financiers based on financial institution suspicious transaction report filings.
- B. It supervises and regulates banking institutions to ensure the safety and soundness of the nation's banking and financial system.
- C. It serves as the central agency for the receipt of disclosures filed by reporting entities.
- D. It administers and enforces economic and trade sanctions based on a government's foreign policy and national security goals.
Answer: A
NEW QUESTION 90
What are three potential issues for foreign financial institutions maintaining correspondent accounts with U.S.
banks under the Patriot Act?
- A. Forfeiture of funds in a U.S. interbank account
- B. Cancellation of correspondent banking relationships
- C. Prohibition of correspondent accounts for shell banks
- D. U.S. residents maintaining private banking accounts
Answer: A,B,C
NEW QUESTION 91
What are two requirements of United States financial institutions when conducting business with an international financial 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,D
NEW QUESTION 92
Which three are principles found in the document "Principles of information Exchange between Financial Intelligence Units (FIUs)"?
- A. It should be possible for communication between FIUs to take place directly and without intermediaries
- B. The Egmont principle of free exchange of information at the FIU level should be possible on the basis of reciprocity, including spontaneous exchange
- C. The exchange of information between FIUs should take place as informally and as rapidly as possible and with no prerequisites, while guaranteeing protection of privacy and confidentiality of the shared data
- D. Differences in the definition of offenses that fall under the competence of FIUs should be before free exchange of information takes place
Answer: A,B,C
NEW QUESTION 93
Why do organized crime groups often use front companies? (Choose two).
- A. Because they can use the company's bank accounts to comingle deposits with those of legal businesses.
- B. Because front companies generally charge higher prices than legitimate companies, so profit margins are higher.
- C. Because using multiple front companies can make it easier to control an entire sector of the economy.
- D. Because they are not registered, front companies are not subject to income and other sales taxes.
- E. Because they are generally subject to lighter due diligence requirements by banks and other financial services providers.
Answer: A,E
NEW QUESTION 94
Since its last regulatory examination, a financial institution has aggressively grown by adding profitable new products and services. The institution has not historically received regulatory criticism regarding its anti-money laundering compliance program. However, a recent regulatory examination cited significant deficiencies in the anti-money laundering program that were attributed primarily to the lack of oversight by the institution's leadership in implementing adequate controls over the new products and services.
Which area of international control should leadership first address to correct the weaknesses in the program?
- A. Money laundering risk assessment
- B. Anti-money laundering policy
- C. Anti-money laundering compliance staff
- D. Anti-money laundering training
Answer: A
Explanation:
Explanation/Reference:
NEW QUESTION 95
What are three factors a financial institution should examine with regard to a new customer who is opening up a new account? Choose 3 answers
- A. The type and size of the business the customer runs
- B. The legal structure of the customer's business
- C. The previous financial institutions where the customer has banked
- D. The country or location where the customer is from or does business
Answer: A,B,C
NEW QUESTION 96
A bank compliance officer has implemented enhanced monitoring rules that have identified some unusual activity that may be indicative of human trafficking.
Which red flag should prompt additional transactional review?
- A. Cash deposits that occur in cities where the customer resides and conducts business
- B. Wire transfer activity from countries with significant migrant populations
- C. Cash deposits that occur in cities where the customer does not reside or conduct business followed by same-day withdrawals
- D. Cash deposits that occur in cities where the customer does not reside or conduct business
Answer: C
NEW QUESTION 97
A U.K. real estate agent has three foreign clients interested in purchasing an apartment building, valued at £30 million, in the outskirts of London as an investment property. The clients are not willing to have their names provided to the bank. The clients want to purchase to be made in the names of three private companies for privacy reasons. The plan is to wire the funds into an account held in the name of another private company at a bank in London.
Which red flag should stop the agent from discussing this potential purchase further?
- A. The clients have the funds necessary to fund a £30 million purchase
- B. The clients are not willing to have their names provided to the bank
- C. The clients are foreign
- D. The clients want to purchase to be made in the names of the private companies
Answer: B
NEW QUESTION 98
What are some red flags financial institutions should be aware of when trying to verify the identity of a customer? Choose 3 answers
- A. Customer being new to the community
- B. Customer not having a connected phone
- C. Customer having no permanent address
- D. Customer having unusual documents from a foreign country
Answer: A,C,D
NEW QUESTION 99
Which of the following activities is most likely associated with a lawyer participating in a money laundering scheme?
- A. Creates corporate entities to disguise true beneficial ownership of clients.
- B. Engages clients with high-net worth in foreign countries.
- C. Frequently travels to countries considered tax havens.
- D. Represents persons accused of crimes against financial institutions.
Answer: A
NEW QUESTION 100
Which three characteristics make non-profit organizations vulnerable to misuse for terrorist financing?
- A. Enjoying the public trust
- B. Being listed as government nonprofit organization
- C. Having access to a considerable sources of funds
- D. Having a global presence for national and international operations and financial transactions
Answer: A,C,D
NEW QUESTION 101
The board of directors receives notice from the primary regulator of the bank that potentially suspicious activity has been identified and the bank president appears to be involved. The Board asks the compliance officer for advice.
Which action should the compliance officer take when informed?
- A. Insist on the president's immediate resignation
- B. Destroy all records relating to the matter
- C. Inform the bank's legal counsel and follow their instructions
- D. Inform the president of the regulator's suspicions and ask for his advice
Answer: C
NEW QUESTION 102
Pursuant to the Third European Union Money Laundering Directive, how long after being out of prominent office should a person NOT be considered to be a Politically Exposed Person (PEP)?
- A. 2 years
- B. 4 years
- C. 3 years
- D. 1 year
Answer: D
NEW QUESTION 103
A customer comes into the bank and appears to be ill-at-ease waiting in the teller line. When the customer gets to the teller, he become exceedingly nervous and asks for a large cashier's check to be cashed and disbursed to him in $100 bills.
What should the teller do after completing the transaction?
- A. File a CTR on the customer by the end of the day
- B. Confer with the bank' s account going forward
- C. Monitor the customer's account going forward
- D. File a SAR on the customer
Answer: D
NEW QUESTION 104
Which assessments are involved in the processes of mutual evaluation and follow-up by the FATF?
- A. Technical compliance assessments and effectiveness assessment
- B. Country audit assessments and transaction monitoring assessments
- C. Sanction risk assessments and the country's National Risk Assessment
- D. Risk assessments and technical standards assessments
Answer: A
NEW QUESTION 105
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 isdeemed suspicious by Bank A.
- A. Bank B in Country A.
- B. The transaction in Country B.
- C. The transaction in Country A.
- D. Bank C in Country C.
Answer: C
Explanation:
Explanation
Another simpler way of looking at the problem is by seeing this case as a Correspondent Banking relationship:
-A is the primary correspondent bank.
-B is the respondent bank.
-C is the receiving bank (of the wire transfer).
Since A is conducting the transaction on behalf of B's customer via the correspondent relationship deemed suspicious, it is the transaction in Country A by the correspondent bank that files the STR. Also, per the regular process, it is on the transaction, not the bank, that the STR is filed against.
NEW QUESTION 106
A junior account manager within an international private bank in Country A noticed that one of his valued customers, who has held an account for several years in the institution, started making cash deposits in batches through various banks in Country B.
The account never received cash deposits and the junior account manager knew that banks in Country B were located very close to each other. What should the junior account manager do?
- A. Offer the customer a more secure method of depositing in the hope of learning something more during the conversation.
- B. File a suspicious transaction report with the Financial Intelligence Unit.
- C. Close the account.
- D. Notify the anti-money laundering specialist of his bank, but do not call the customer.
Answer: B
NEW QUESTION 107
When the minimum CDD standards of the home and host countries differ, the offices in the host countries should follow which requirements?
- A. The higher standard of the two
- B. The CDD standards required by the home country
- C. Local rules and regulations
- D. The minimum required
Answer: A
NEW QUESTION 108
Which action does the Financial Action Task Force (FATF) recommend be taken against jurisdictions that have strategic deficiencies?
- A. Apply counter-measures
- B. Conduct due diligence
- C. Add the jurisdiction to the United Nations' list of sanctioned jurisdictions
- D. Create an action plan to address the deficiencies without the support of the FATF
Answer: A
NEW QUESTION 109
What is a key objective of the Egmont Group?
- A. To safeguard the financial system from illicit use and combat money laundering and promote national security.
- B. To issue binding standards that establish consistently operated Financial Intelligence Units in member jurisdictions.
- C. To find ways to promote the development of Financial Intelligence Units and the sharing of expertise.
- D. To provide best practices for financial institutions on how to report suspicious activity to best share the information with law enforcement.
Answer: C
Explanation:
Explanation
https://egmontgroup.org/en/content/about
"The Egmont Group is a united body of 165 Financial Intelligence Units (FIUs). The Egmont Group provides a platform for the secure exchange of expertise and financial intelligence to combat money laundering and terrorist financing (ML/TF). This is especially relevant as FIUs are uniquely positioned to cooperate and support national and international efforts to counter terrorist financing and are the trusted gateway for sharing financial information domestically and internationally in accordance with global Anti Money Laundering and Counter Financing of Terrorism (AML/CFT) standards.
NEW QUESTION 110
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