Acams CAMS Exam - Topic 2 Question 112 Discussion

Actual exam question for Acams's CAMS exam

Question #: 112
Topic #: 2

[All CAMS Questions]

What is the primary advantage of using a risk-based approach in allocating compliance resources?

AIt reduces the overall cost of compliance programs.

BIt eliminates the need for periodic audits of low-risk customers.

CIt ensures focus on high-risk areas while maintaining operational efficiency.

DIt standardizes compliance processes across all regions.

Show Suggested Answer

Suggested Answer: C

The CAMS 6th Edition highlights that a risk-based approach enables organizations to efficiently allocate compliance resources, focusing efforts on areas presenting the highest risk, thereby ensuring both regulatory compliance and operational effectiveness.

''A risk-based approach allows firms to concentrate resources and controls where the risk of ML/TF is highest, while applying simplified measures to lower-risk areas. This enhances both effectiveness and efficiency.''

(CAMS 6th Edition, AML Compliance Program: Risk-Based Approach)

Incorrect Options:

A: Cost savings may occur, but it is not the main advantage.

B: Audits may still be required, just less frequently for low-risk customers.

D: Risk-based approaches are tailored, not standardized, across regions.

CAMS Study Guide 6th Edition, AML Compliance Program, ''Risk-Based Approach''

FATF Recommendation 1: Assessing risks and applying a risk-based approach

by Peggy at May 07, 2026, 09:43 PM

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Mitsue

2 days ago

I think the main advantage is about focusing on high-risk areas, but I'm not entirely sure if that's the only benefit.

upvoted 0 times

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