[Q37-Q56] Latest CAMS Practice Test Questions Verified Answers As Experienced in the Actual Test!

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Latest CAMS Practice Test Questions Verified Answers As Experienced in the Actual Test!

Pass ACAMS CAMS Exam in First Attempt Easily

The Certified Anti-Money Laundering Specialists certification program is administered by the Association of Certified Anti-Money Laundering Specialists (ACAMS), which is the largest international membership organization dedicated to fighting financial crime. The organization has been a leader in the field of AML training and certification for over 20 years. ACAMS provides comprehensive training and support to individuals who are seeking to earn the CAMS certification, including study materials, webinars, and practice exams.

NO.37 Which three methods are commonly used by an accountant to launder money? (Choose three.)

Representing a client court

Understanding income to take a tax loss

Overstating income to hide excess cash

Acting as a conduit for transferring cash between accounts

Acting as a designee for someone who wishes to hide their identity

NO.38 Which method to finance terrorism involves falsifying transaction-related documents?

Bribery

Black market peso exchange

Trade-based money laundering

Informal value transfer system

NO.39 An AML training program should include which requirement?

New tellers should receive training after their first year on the identification of suspicious or unusual activity.

New lending staff should receive annual training on the preparation of currency transaction reporting.

New staff should receive training during employee orientation or shortly thereafter on bank procedures.

New operational staff should receive training shortly after hire on currency transaction reporting exemptions.

NO.40 A compliance officer at a small local bank reads in the newspaper that a high ranking local public official, who is a long-standing account holder, is being investigated by the competent authorities for accepting bribes. The compliance officer immediately checks the official’s account and new account the official opened at the bank a few weeks ago. The compliance officer’s investigation of these accounts discloses that the official’s long-standing account had no unusual activity and that the recently opened had no activity since it was opened. What should the compliance officer do next?

Wait until the new account receives funds and confirm their source

Call the competent authorities to assess the need to file a suspicious transaction report

Meet with staff who opened the account to understand its nature and purpose

Call the office to confirm the need for multiple accounts

NO.41 What can a compliance officer do in the absence of automated software to conduct U.S. Department of the Treasury Office of Foreign Assets Control (OFAC) sanction screens?

Rely on a credit report from OFAC

Conduct a key-word search on the Internet

Use the consolidated Sanctions List Search screen on the OFAC website

Obtain up-to-date copies of the OFAC’s Specially Designated Nationals list

NO.42 Which statement is true about banking regulatory agencies having the authority to obtain information from regulated institutions?

The regulatory agencies may only obtain information from the regulated institution’s books and records by virtue of a search warrant

A search warrant may be substituted by a court subpoena compelling the institution to produce the information to the regulatory agency

The agencies authority to conduct examinations negates the need for a warrant or subpoena

If a regulatory agency intends to prosecute a regulated institution, a warrant or subpoena must first be granted before the information can be obtained

NO.43 An anti-money laundering specialist working at a bank just received a legal request from a law enforcement agency mandating the release of all financial transaction records relating to an account at the bank. The specialist immediately recognizes the account as one owned by the bank Chief Executive Officer’s brother.
During research to gather the requested documents, the specialist finds several internal memos he had sent to the bank president with concerns regarding possible suspicious activity relating to this account. The specialist recalls the bank president verbally responded to each memo with an explanation of the activity and indicated there was no cause for concern. Which of the following should the specialist do with respect to these internal memos?

Place these memos in his personal files in case they are subsequently requested.

Ask the bank president to document his instructions to the specialist.

Call the law enforcement agent and suggest he modify the legal request to include these memos.

Advise the bank’s senior legal advisor of the situation.

NO.44 A foreign bank’s compliance officer receives a request for information from a US bank, alerting the foreign bank to the possibility that it may have transferred funds on behalf of an Office of Foreign Assets Control (OFAC>-sanctioned person, who holds an account with the foreign bank. Which statements are true with respect to said funds and the information in relation to the transaction under scrutiny? (Select Two.)

If the funds are seized, then the foreign bank would be within its rights to dispute such seizure.

US authorities have no power (in terms of the USA PATRIOT Act) to sanction the foreign bank for transferring funds on behalf of an OFAC-sanctioned entity.

The USA PATRIOT Act authorizes the Secretary of the Treasury or the Attorney General to subpoena records from the foreign bank that maintains a correspondent account with a US bank,

If a US citizen were part of the foreign bank’s Board deliberations where a decision was made to onboard the OFAC-sanctioned entity as a client, then they can be confronted with criminal charges.

US authorities are only permitted to seize the funds transferred by the foreign bank under OFAC sanctions if there is an equivalent sanctions regime of the UN which has been contravened.

NO.45 A prospective client walks into an accounting firm wanting to incorporate a company. The accountant feels uncomfortable after the meeting. Which two of the accountant’s observations warrant escalation to the compliance officer? (Select Two.)

The prospective client is unable to provide information about the beneficial owners.

The prospective client is able to provide source of funds and source of wealth documents.

The prospective client presents confusing details about the proposed business and has very little knowledge about the proposed business activity.

The principal activities of the proposed company are importing and exporting new furniture.

The prospective client exhibits confidence when speaking to the accountant when providing personal details.

NO.46 To ensure that an institution’s anti-money laundering program is current, which step should be taken?

The program should be evaluated and updated at least every six months be the Board of Directors

The program should be reviews by a federal law enforcement officer for gaps in controls

The program should be sent to the institution’s government regulator on a periodic basis

The program should be reassessed at least annually

NO.47 When a bank performs a risk assessment, what areas should an institution focus on?

The type and location of the institution’s clients

The nature and breadth of the services and products the institution provides

The geographic locations where the institution does business

The amount of the money the institution earns prior to taxes

A bank’s risk assessment is a process of identifying, measuring, and mitigating the potential risks that the bank faces in its operations, products, services, and customers. According to the ACAMS Study Guide, a bank should focus on the following areas when performing a risk assessment1:
The type and location of the institution’s clients. This involves analyzing the customer base, the types of accounts and transactions, the source and destination of funds, the level of due diligence and verification, and the risk profile of the customers. For example, a bank should consider whether its customers are individuals or entities, domestic or foreign, politically exposed persons, high-net-worth individuals, non-profit organizations, or cash-intensive businesses. The location of the customers may also indicate the level of exposure to money laundering, terrorist financing, sanctions, or tax evasion risks.
The nature and breadth of the services and products the institution provides. This involves evaluating the range and complexity of the products and services offered by the bank, the delivery channels, the payment methods, and the innovation and technology involved. For example, a bank should consider whether it offers wire transfers, correspondent banking, trade finance, private banking, trust and fiduciary services, prepaid cards, mobile banking, or cryptocurrency services. The nature and breadth of the services and products may also affect the level of transparency, traceability, and compliance of the transactions.
The geographic locations where the institution does business. This involves assessing the jurisdictions where the bank operates, where its customers reside, where its counterparties are located, and where the funds flow. For example, a bank should consider whether it has branches, subsidiaries, or affiliates in high-risk countries, whether it serves customers from high-risk countries, whether it engages in cross-border transactions, and whether it complies with the local laws and regulations of the countries where it does business. The geographic locations where the institution does business may also influence the level of exposure to political, legal, regulatory, or reputational risks.
References:
1: ACAMS Study Guide, Chapter 2: Risk Assessments, 1

NO.48 You have several AI applications that use an Azure Kubernetes Service (AKS) cluster. The cluster supports a maximum of 32 nodes.
You discover that occasionally and unpredictably, the application requires more than 32 nodes.
You need to recommend a solution to handle the unpredictable application load.
Which scaling method should you recommend?

horizontal pod autoscaler

cluster autoscaler

manual scaling

Azure Container Instances

NO.49 Which statement best describes a key aspect of the AML Directive of the EU regarding business relationships and transactions with high-risk third countries?

Obliged entities should voluntarily consider the implementation of increased external audit requirements for branches and subsidiaries located in high-risk countries.

Obliged entities, in accordance with the member state regulations, should determine at a national level the measures that can be used for enhanced due diligence.

Obliged entities should implement additional mitigating measures complementary to the enhanced customer due diligence procedures, in accordance with a risk based approach.

Obliged entities should not take into account specific circumstances when performing enhanced due diligence measures.

NO.50 What are the regulatory risks to a bank employee who willfully violates anti-money laundering laws?

Investigation and reputational damage

Fines and suspension from the industry

Criminal investigation and imprisonment

Enforcement actions including fines against the financial institution

NO.51 A compliance officer for a casino may suspect money laundering if an individual:

invokes reporting requirements through a lump sum payment.

refers to casino associates by their first name.

purchases a low volume of chips with cash and turns them in for a casino check.

requests to have winnings transferred to a bank account of a third party.

NO.52 Which three stages of money laundering are on-line banking vulnerable to?

Placement

Layering

Integration

Structuring

NO.53 What are three elements of a sound Customer Due Diligence Program?

Determination of what type of customer the financial institution will accept

Training as to how and to what extent to identify prospective customers

Obtaining date of birth and address of a prospective customer

Determination of who in the institution should be assigned to the prospective customer as a liaison

NO.54 Can trading in antiques be useful for money laundering?

No, because the antiques market is rather small and unusual transactions would draw at-tention.

No, because antique sales and purchases are highly regulated worldwide.

Yes, because cash is often physically hidden within the antiques themselves.

Yes, because antiques can be of high value and often easily transported.

NO.55 Which of the following represents the first Financial Action Task Force initiative?

The 40 Recommendations on Money Laundering

The Report on Non-Cooperative Countries and Territories

The Report on Money Laundering Typologies

The Special Recommendations on Terrorist Financing

NO.56 Which information should be gathered as part of enhanced due diligence (EDD) for a high-risk customer?

Explanations for changes in marital status

Details on individuals with control over the account

Plans for traveling in business trips

Personal references

The CAMS exam covers a wide range of topics related to AML compliance, including money laundering methods and techniques, regulatory requirements, risk assessments, and due diligence procedures. CAMS exam is divided into four parts, each of which tests different aspects of AML knowledge and expertise. The test is administered online and consists of 120 multiple-choice questions, which must be completed in four hours.

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