Pass CAMS Exam in First Attempt Guaranteed 100% Cover Real Exam Questions [Aug-2022]
Valid CAMS test answers & ACAMS CAMS exam pdf
Topics Covered
All in all, the CAMS exam is based on four domains. The first of which is Risks and Methods of Money Laundering & Terrorism Financing. This topic accounts for 26% of the exam items and consists of several subdomains. Thus, the following is a brief portion of the list of those subdomains: recognize ways of money laundering used by banks and similar institutions, by insurance companies, by broker-dealers, capital markets, or investment advisors. What's more, you need to also be aware of recognizing methods of money laundering utilized by organizations such as casinos or other game-related industries, by companies dealing with precious metals or other high-value goods, real estate, etc. In addition, here, you need to know more about the red flags, commercial transactions, human trafficking, and the like.
The second objective is Compliance Standards for Anti-money Laundering (AML) and Combating the Financing of Terrorism (CFT) which stands for 25% of all test content. In particular, this domain consists of 11 areas. So, to master this topic in full, you need to learn to recognize the main aspects of the EU Directives on money laundering, the USA PATRIOT Act, and the OFAC sanctions. On top of that, you need to touch on how to identify the FATF 40 Recommendations and how to deal with the aspects of the BASEL Committee Customer Due Diligence Principles including the coverage of Egmont Group objectives.
The third section the real exam tests individuals on are AML, CFT, and Sanctions Compliance Programs that covers 28% of the exam and consists of 31 subdomains. In all, under this category, you have to recognize the main items of an anti-money laundering training program and the part that senior management and director boards play in how an organization deals with anti-money laundering oversight. Then, you need to also be proficient in handling AML tools, governance, audits, and situation.
The last part covered is Conducting and Supporting the Investigation Process detailing 21% of the exam questions. All in all, such a portion focuses on recognizing suitable methods of conducting interviews for potential parties involved in an anti-money laundering event, dealing with public source information or other sources of information that may be available for use in an investigation given a specific scenario, accepting ways in which law enforcement organizations may request data from an institution with regards to money laundering, etc.
NEW QUESTION 12
Which information must a United States financial institution retain for having foreign correspondent accounts as part of the USA PATRIOT Act record keeping requirements?
- A. A suspicious activity report filed and the supporting documentation involving foreign correspondent accounts
- B. Records identifying the owners of each foreign bank
- C. Purchase of monetary instruments of $3,000 or more involving foreign correspondent accounts
- D. Section 314(b) information sharing results related to foreign correspondent accounts
Answer: D
NEW QUESTION 13
What is an essential element of Know Your Customer (KYC) standards according to the Basel Committee's Customer Due Diligence for Banks paper?
- A. A customer acceptance policy
- B. Annual staff training
- C. All completed KYC documents must be reviewed by a senior manager not involved in the account opening process
- D. The same KYC requirements must be applied in all cases
Answer: A
Explanation:
Explanation/Reference: https://www.bis.org/publ/bcbs77.pdf
NEW QUESTION 14
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. effective laws regarding multiple sources of beneficial owner identification by a financial institution
- C. the establishment of a system for reporting "unusual" transactions, instead of "suspicious", as mentioned in the Financial Action Task force 40 Recommendations
- D. the presence of bank secrecy provisions reasonably balanced against the government's need for information
Answer: A
NEW QUESTION 15
Which of the following is the main reason Internet gambling is an ideal web-based money laundering method?
- A. Large number of offshore websites located in known high-crime areas.
- B. Ease of connection and low subscription rate with major Internet service providers.
- C. High credibility of gambling websites.
- D. Ability to transfer value across jurisdictions.
Answer: D
NEW QUESTION 16
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. Confer with the bank' s account going forward
- B. File a CTR on the customer by the end of the day
- C. Monitor the customer's account going forward
- D. File a SAR on the customer
Answer: D
NEW QUESTION 17
What are two aspects of the Wolfsberg Anti-Money Laundering (AML) Principles for Correspondent Banking?
(Choose two.)
- A. An Institution may assign a low risk rating to a correspondent bank located in a jurisdiction deemed to have an adequate AML environment (e.g., Financial Action Task Force member country) without needing to consider other factors.
- B. Correspondent banking is an inherently high risk business and all correspondent bank relationships should be reviewed on an annual basis.
- C. Factors such as politically exposed person involvement and downstream (nested) correspondents increase the risk inherent in a correspondent relationship.
- D. At least one person, aside from the person sponsoring the relationship, should approve the correspondent relationship.
Answer: B,D
Explanation:
Explanation/Reference: https://www.wolfsberg-principles.com/sites/default/files/wb/pdfs/wolfsberg-standards/8.%
20Wolfsberg-Correspondent-Banking-Principles-2014.pdf
NEW QUESTION 18
Which transaction should result in a SAR/STR filing?
- A. A small business owner deposits checks totaling $9,950 USD on a daily basis without providing a legitimate purpose.
- B. A national food-chain restaurant makes multiple, anticipated cash transactions that are above the daily reporting threshold.
- C. A small business owner deposits $25,000 USD in cash proceeds with a business equipment bill of sale.
- D. A national food-chain restaurant with multiple cash transactions at various branch locations.
Answer: A
NEW QUESTION 19
Which of the following best describes the Black Market Peso Exchange money laundering method?
- A. A method used to smuggle dollars or pesos across the border from the United States to Mexico, and vice versa
- B. The best known money laundering method used by known terrorists
- C. An undercover technique to identify politically exposed persons who may assist money launderers
- D. A method primarily used by narcotics traffickers to transfer value back to the source country
Answer: A
NEW QUESTION 20
An internal investigation log is primarily intended to:
- A. Provide training on investigations to the anti-money laundering officer and Financial IntelligenceUnit.
- B. Report status of investigations to the Board of Directors.
- C. Report status of investigations to the Board of Directors.
- D. Track the status of investigations into unusual activity.
- E. Detect and monitor possible suspicious activity.
Answer: C
NEW QUESTION 21
What is the main role of the Egmont Group in combating money laundering and terrorist financing?
- A. To establish regulations that countries must use when establishing their own FIUs
- B. To find ways that FIUs can better cooperate amongst themselves and exchange information
- C. To create standards that countries can use when drafting laws to combat money laundering and terrorist financing
- D. To require that all countries participate in a global repository for the sharing of information
Answer: C
Explanation:
Explanation/Reference: https://egmontgroup.org/en/content/about
NEW QUESTION 22
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 client is a high level government official
- B. The client is from a Caribbean country
- C. The funds are coming from several accounts in various countries.
- D. The use of an LLC to make the purchase
Answer: A,C
NEW QUESTION 23
At a small community bank, the compliance officer identifies unusual activity on a customer, who with his personal and company accounts, is the bank's largest depositor. The customer's companies have significant balances on their outstanding loans. The compliance officer notices that there is a lot of unusual movements of money between the customer's individual and business accounts. After filing a suspicious transaction report (STR), the compliance officer gets a call from law enforcement indicating that they want the bank to keep the account open while they conduct an investigation into the customer.
How should the compliance officer escalate this information to the board of directors?
- A. By providing a copy of the STR to the board
- B. By informing the regulator to bring it up with their next meeting with the board
- C. By providing a copy of the letter from law enforcement asking the bank to keep the account open.
- D. By providing a high level summary of the activity and the interactions with law enforcement
Answer: B
NEW QUESTION 24
In some instances, a financial institution may receive a warrant from law enforcement authorities to search its premises. A search warrant is a grant of permission from a court for a law enforcement agency to search certain designated premises and seize specific categories of items or information. Generally, what is the required threshold for the requesting agency to establish in order to obtain a search warrant of a financial institution?
- A. Reasonable belief
- B. Clear and convincing proof
- C. A preponderance of the evidence
- D. Probable cause
Answer: D
Explanation:
Explanation
Explanation/Reference:
A search warrant is a grant of permission from a court for a law enforcement agency to search certain designated premises and to seize specific categories of items or documents. Generally requesting agency is required to establish that probable cause exists to believe that evidence of a crime will be located. Warrant is authorized based on information contained in an affidavit submitted by a law enforcement officer.
NEW QUESTION 25
Which of the following poses the greatest money laundering risk for a financial institution offering on-line services to customers?
- A. Institutions offering on-line services have no possibility to properly verify the identity of their customers.
- B. Customers can directly access their accounts without being detected.
- C. There is greater difficulty in matching the customer with the provided identification documentation. B.
There is no human scrutinizing the customer's transactions, thus increasing the potential for large transactions.
Answer: B
Explanation:
Explanation
Correct but still under verification
NEW QUESTION 26
A compliance officer provides an overview of the bank's anti-money laundering program to a group of new tellers during employee orientation.
Which training element should be delivered to this audience?
- A. Results of recent risk assessments
- B. Large cash transaction reporting procedures
- C. Past check fraud losses incurred by the financial institution
- D. The financial institution's surprise cash audit policy
Answer: B
Explanation:
Explanation
As the compliance officer is providing overview of the "bank's anti-money laundering program to a group of new tellers during employee orientation"
NEW QUESTION 27
You design an AI solution that uses an Azure Stream Analytics job to process data from an Azure IoT hub. The IoT hub receives time series data from thousands of IoT devices at a factory.
The job outputs millions of messages per second. Different applications consume the messages as they are available. The messages must be purged.
You need to choose an output type for the job.
What is the best output type to achieve the goal? More than one answer choice may achieve the goal.
- A. Azure Blob storage
- B. Azure Cosmos DB
- C. Azure SQL Database
- D. Azure Event Hubs
Answer: B
Explanation:
Stream Analytics can target Azure Cosmos DB for JSON output, enabling data archiving and low-latency queries on unstructured JSON data.
References:
https://docs.microsoft.com/en-us/azure/stream-analytics/stream-analytics-documentdb-output
NEW QUESTION 28
In many jurisdictions, financial institutions are prohibited from hiring a person who has been convicted of what type of offense?
- A. Protests of government action
- B. Kidnapping
- C. Offenses involving dishonesty
- D. Driving while under the influence
Answer: C
Explanation:
Explanation
Explanation/Reference:
NEW QUESTION 29
Trusts established in certain offshore jurisdictions make good vehicles to lay under money for which of the following reasons?
- A. Trusts are typically set up to minimize taxes.
- B. Offshore jurisdictions are unfamiliar with trust.
- C. Trusts may hold assets of significant size.
- D. Names of the settlor and beneficiaries are into publicly available.
Answer: A
NEW QUESTION 30
Which statement about U.S. Specified Unlawful Activities (SUA) is true?
- A. SUAs are generally limited to a small sub-set of crimes
- B. SUAs are limited to crimes that occur within the borders of the U.S. and its territories and possessions
- C. At least one SUA must be proven in order to pursue a money laundering conviction
- D. In order to secure a conviction, the defendant must be proven to have known the precise nature of the source of funds
Answer: C
NEW QUESTION 31
Based on the USA PATRIOT Act, what action might the US take to demonstrate extraterritorial reach?
- A. Send requests for information to a non-US based financial institution (FI)
- B. Hand over potential penalties from the US to another government
- C. Initiate a lawsuit in the home country of the non-US FI
- D. Freeze U. S. accounts that contain funds from the non-US FI
Answer: A
NEW QUESTION 32
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. Destroy all records relating to the matter
- B. Inform the president of the regulator's suspicions and ask for his advice
- C. Insist on the president's immediate resignation
- D. Inform the bank's legal counsel and follow their instructions
Answer: D
NEW QUESTION 33
The vice president of the foreign correspondent banking department at a large United States bank has been notified that a foreign bank with an offshore license wants to open a correspondent account.
Which two things must the vice president acquire under the USA PATRIOT Act? (Choose two.)
- A. A list of all the customers of the correspondent bank
- B. Information relating to the foreign bank's anti-money laundering program
- C. The identity of 10% owners of the correspondent bank, unless it is publicly traded
- D. A list of the types of businesses served by the correspondent bank
Answer: B,C
NEW QUESTION 34
Which two aspects of the security broker dealer industry increase its exposure to money laundering? Choose 2 answers
- A. Fast paced transactions conducted electronically
- B. Disposing of cash through securities purchases
- C. The routine use of wire transfers from, to or through multiple jurisdictions
- D. They easy conversion of holdings to cash with significant loss of principal
Answer: A,B
NEW QUESTION 35
An account officer who maintains an excellent relationship with the finance manager for a correspondent bank customer learns that many records for the correspondent bank have been requested by law enforcement. In the interest of maintaining a good relationship with the customer, the account officer sets up a meeting to discuss the legal request with the customer. The account officer intends to discuss points related to the investigation during the meeting.
What should an anti-money laundering specialist recommend?
- A. Let the account manager's manager know what conversations have taken place with the customer and document the account file accordingly
- B. Discuss all the points being investigated by law enforcement to ensure the correspondent bank is well prepared when approached
- C. Limit discussions about the investigation with the customer and by satisfied that the account manager has provided proper notice to the customer
- D. Cancelled the meeting as he has already behaved inappropriately by alerting to the investigation
Answer: C
NEW QUESTION 36
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