Acams Advanced-CAMS-Audit Exam - Topic 2 Question 1 Discussion

Actual exam question for Acams's Advanced-CAMS-Audit exam

Question #: 1
Topic #: 2

Which key risk indicator should the internal auditor consider when reviewing correspondent banking activities?

AVolume of transaction activity referred by the respondent bank.

BSize and stature of a respondent bank's operations in its home country.

CNumber of respondent banks located in higher risk jurisdictions.

DNumber of correspondent banking relations terminated.
Correspondent banking relationships with banks in high-risk jurisdictions are a key risk indicator, as these relationships often pose greater AML/CFT risks due to regulatory or operational deficiencies in those jurisdictions.

Show Suggested Answer

Suggested Answer: C

by Mitsue at Jan 15, 2025, 05:36 PM

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Arminda

4 months ago

I agree with D, but we shouldn't overlook A either!

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Mel

4 months ago

Wait, are we really saying D is the most critical? Seems a bit narrow.

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Tiera

4 months ago

C makes sense, more banks in risky areas means more exposure.

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Ozell

4 months ago

I think B is also important, size matters in risk assessment.

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Georgeanna

4 months ago

Definitely D, those high-risk jurisdictions are a big red flag.

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Colton

5 months ago

I’m a bit confused about which indicator is most critical; I recall we talked about all these factors, but I can’t pinpoint the key one for this scenario.

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Brandee

5 months ago

I practiced a similar question about AML risks, and I feel like the termination of relationships might indicate underlying issues.

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Barney

5 months ago

I think the size of the respondent bank's operations could be relevant, but I’m leaning towards the number of banks in high-risk areas.

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Laurel

5 months ago

I remember discussing the importance of monitoring transaction volumes in class, but I’m not sure if that’s the best indicator here.

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Erick

5 months ago

I feel pretty confident about this one. The correct answer is C - the number of respondent banks located in higher-risk jurisdictions. That's the risk factor that an internal auditor would be most concerned with when reviewing correspondent banking activities.

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Launa

5 months ago

Ah, I've seen questions like this before. The number of respondent banks in higher-risk jurisdictions is definitely a key risk indicator that the internal auditor should focus on. That's the one that stands out to me as the most relevant.

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Javier

5 months ago

Hmm, I'm a bit unsure about this one. There are a few different risk factors mentioned, and I'm not sure which one would be the most important for an internal auditor to consider. I'll have to think this through carefully.

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Merilyn

5 months ago

This seems like a straightforward question about correspondent banking risks. I think the key is to focus on the risk factors that an internal auditor would consider, like the location and size of the respondent banks.

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Emerson

1 year ago

I believe the volume of transaction activity referred by the respondent bank is also important to consider.

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Brittni

1 year ago

I agree with Ivan, correspondent banking relationships in high-risk jurisdictions can pose greater AML/CFT risks.

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Ivan

1 year ago

I think the internal auditor should consider the number of respondent banks located in higher risk jurisdictions.

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Sheron

1 year ago

Haha, I bet the auditor is just hoping none of the respondent banks are located in Mordor or something. But yeah, C is the clear choice here.

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Tresa

1 year ago

User 4: Tresa, I agree. It's crucial for the internal auditor to consider all these factors when reviewing correspondent banking activities.

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Gerald

1 year ago

User 3: Gerald, I think you're right. Those high-risk jurisdictions can really increase AML/CFT risks.

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Nan

1 year ago

User 2: Nan, I agree. C) Number of respondent banks located in higher risk jurisdictions is definitely an important risk indicator.

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Stevie

1 year ago

User 1: Haha, I bet the auditor is just hoping none of the respondent banks are located in Mordor or something.

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Josefa

1 year ago

I agree, C is the way to go. You can't ignore the risks posed by banks in sketchy locations.

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Kathryn

1 year ago

C definitely seems like the right answer here. Correspondent banking with banks in higher-risk jurisdictions can be a major red flag for AML/CFT issues.

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Ruthann

1 year ago

It's crucial for internal auditors to pay attention to the size and stature of a respondent bank's operations in its home country as well.

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Laura

1 year ago

Yes, the number of respondent banks located in higher risk jurisdictions is an important key risk indicator to consider.

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Danilo

1 year ago

I agree, correspondent banking with banks in high-risk jurisdictions is definitely a red flag for AML/CFT issues.

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