Free Acams CAMS Exam Dumps and CAMS Exam Questions

Question No: 21

MultipleChoice

What should a bank focus on to ensure on-going compliance with its AML program?

Options

AIt should ensure that it develops and provides on-going targeted training of all current and new employees

BIt should subject all new employees to criminal background checks before being hired

CIt should review and update its transaction monitoring system

DIt should ensure that the regulators have reviewed and have approved the bank's AML program

Question No: 22

MultipleChoice

Which type of transactions present the highest risk?

Options

AWire transfers from a publicly listed company

BPayroll payments

CSocial insurance payments

DForeign exchanges

Question No: 23

MultipleChoice

A prospective AML officer comes highly recommended by a bank's up-stream correspondent institution of similar size and make-up, located in a different city in the same country. The bank is interested in hiring the individual. What should be the next step taken by the Board of Directors?

Options

ADo a thorough background check

BConfer with its regulatory agency to determine whether it is appropriate to hire the person

CHire the individual, relying on the recommendation of its correspondent

DHire the individual on a probationary basis so that the institution can determine if the individualis sufficiently experienced and capable

Question No: 24

MultipleChoice

Which two aspects of the security broker dealer industry increase its exposure to money laundering? Choose 2 answers

Options

AThe routine use of wire transfers from, to or through multiple jurisdictions

BThey easy conversion of holdings to cash with significant loss of principal

CDisposing of cash through securities purchases

DFast paced transactions conducted electronically

Question No: 25

MultipleChoice

In which type of banking transaction is price manipulation, as a form of money laundering, a common practice?

Options

ARedeeming an annuity

BSending a wire transfer

CIssuing a letter of credit

DSubscribing to a cash management account

Question No: 26

MultipleChoice

What is a criterion for FATF membership?

Options

AThe country should be democracy

BThe country should be a member of a FATF-style regional body

CThe country should have already implemented all of the FATF Recommendations

DThe country should have already implemented the standards of the European Union Directives

Question No: 27

MultipleChoice

Which three statements are true regarding the extraterritorial reach of laws and legislation of the U.S.?

Options

AThe criminal anti-money laundering law can apply to transactions that occur partially overseas

BEconomic and trade sanctions by OFAC may pose extraterritorial risks for financial institutions and businesses outside the U.S.

CThe extraterritorial reach covers all transactions throughout the global economy

DThe defendant does not need to know the funds came from an illegal activity under state, federal or foreign law

Question No: 28

MultipleChoice

Which three are examples of best practices terms of ensuring an adequate AML program?

Options

AEngage an independent party to perform a periodic review of the program

BReview applicable domestic and international AML guidance

CPerform a risk analysis on a regular basis and compare it to the coverage of the AML program

DReview the accuracy of account opening applications

Question No: 29

MultipleChoice

How do payable through accounts (PTAs) differ from normal foreign correspondent accounts?

Options

AThe customers do not have to worry about sanctions list screening such as OFAC

BThe customers have the ability to directly control funds at the correspondent bank

CThe customers can contact the correspondent bank directly to send wire transfers

DThe customers can hide their identity through the use of cover payments in U.S. dollars

Question No: 30

MultipleChoice

An anti-money laundering specialist at a financial institution has received a legal request to provide all transaction records for a specific individual since 2004. Which three items should be delivered?

Options

AMonthly statements and transaction activities for that individual since 2004

BAll wire transfer for that individual since 2004

CAll security trading activities for that individual since 2004

DSignature cards from accounts opened by that individual since 2004

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