Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

Acams Exam CAMS-FCI Topic 1 Question 3 Discussion

Actual exam question for Acams's CAMS-FCI exam
Question #: 3
Topic #: 1
[All CAMS-FCI Questions]

Which reputations risk consequence could a financial entity face for violating AML laws?

Show Suggested Answer Hide Answer
Suggested Answer: D

According to the Certified Anti-Money Laundering Specialist (CAMS) Manual [1], 6th edition, financial entities that violate Anti-Money Laundering (AML) laws can face several reputational risks such as loss of high-profile customers, seizure of assets, increased audit costs to monitor behavior, and monetary penalties. For example, the US Treasury's Financial Crimes Enforcement Network (FinCEN) imposes civil money penalties on 'persons who willfully violate, attempt to violate, conspire to violate, or cause any violation of any provision of the Bank Secrecy Act or its implementing regulations.' (CAMS Manual, 6th edition, page 26).


by Georgiann at Oct 21, 2024, 07:38 PM

Limited Time Offer

25%

Off

Get Premium CAMS-FCI Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Malcom
9 months ago
Haha, Ressie's got a point. Audits are the bane of any banker's existence. Maybe they should just hire a team of accountants to watch their every move.
upvoted 0 times
...
Ressie
9 months ago
Option C is an interesting choice. Increased audit costs? Sounds like a financial entity's worst nightmare. Cha-ching!
upvoted 0 times
Johnna
8 months ago
D: Seizure of assets is another possible consequence. They need to be careful.
upvoted 0 times
...
Albina
8 months ago
C: I chose increased audit costs as a consequence. It can really add up for them.
upvoted 0 times
...
Pilar
8 months ago
B: Yeah, that's a big risk. They could also lose high-profile customers.
upvoted 0 times
...
Alana
8 months ago
A: I think the financial entity could face monetary penalties for violating AML laws.
upvoted 0 times
...
...
Kenny
9 months ago
I'm going to have to disagree with you, Sharika. Monetary penalties are definitely the biggest risk here. Who needs assets when you're going bankrupt from fines?
upvoted 0 times
Lorrine
8 months ago
Loss of high-profile customers can have a big impact on a financial entity's reputation.
upvoted 0 times
...
Lauran
8 months ago
Increased audit costs to monitor behavior can also be a significant risk.
upvoted 0 times
...
Willard
8 months ago
I think seizure of assets is a huge consequence as well.
upvoted 0 times
...
Lashawn
8 months ago
Monetary penalties are definitely the biggest risk here.
upvoted 0 times
...
...
Sharika
9 months ago
I'd have to go with B. The thought of the government seizing my company's assets is pretty terrifying.
upvoted 0 times
Benedict
8 months ago
D) Monetary penalties
upvoted 0 times
...
Nadine
9 months ago
B) Seizure of assets
upvoted 0 times
...
Shanice
9 months ago
A) Loss of high-profile customers
upvoted 0 times
...
...
Willard
10 months ago
I believe it could also result in monetary penalties.
upvoted 0 times
...
Raina
10 months ago
I agree with you, Belen. Violating AML laws could definitely lead to seizure of assets.
upvoted 0 times
...
Sabra
10 months ago
Option D is the most realistic consequence. Monetary penalties can really hurt a financial institution's bottom line.
upvoted 0 times
Emeline
8 months ago
C) Increased audit costs to monitor behavior
upvoted 0 times
...
Armando
8 months ago
B) Seizure of assets
upvoted 0 times
...
Katie
8 months ago
A) Loss of high-profile customers
upvoted 0 times
...
Carrol
9 months ago
D) Monetary penalties
upvoted 0 times
...
...
Belen
10 months ago
I think the consequence could be seizure of assets.
upvoted 0 times
...

Save Cancel