Discuss Acams CAMS Exam Topic 2 Question 118

One of the basic elements of an effective AML/CFT compliance program is:

AA system of enterprise risk management

BAn artificial intelligence-based transaction monitoring system

CAn independent and skilled audit function

DAn artificial intelligence-based enhanced due diligence system

Suggested Answer: C

An effective AML/CFT compliance program must include several core elements outlined in FATF recommendations and national regulations. One of these essential elements is an independent and skilled audit function.

The purpose of independent audit is to test and validate the effectiveness of AML controls, identify weaknesses, and ensure compliance with regulatory requirements. Audits must be conducted by qualified personnel who are independent from the day-to-day AML operations to maintain objectivity.

While enterprise risk management frameworks and advanced technologies such as AI can enhance AML programs, they are not mandatory foundational elements. Regulators focus on governance, oversight, and accountability rather than technology sophistication.

An independent audit function ensures continuous improvement and provides assurance to senior management and regulators that the AML program is operating effectively.

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16 comments · newest first

Tori 3 days ago

I think A is the best choice. Risk management is fundamental.

Laura 8 days ago

D could be useful, but A is more fundamental.

Miles 13 days ago

C is essential. Skilled audits catch issues early.

Della 18 days ago

A covers the foundation. Without it, everything else fails.

Cassi 23 days ago

B sounds interesting, but I doubt it's enough alone.

Carisa 29 days ago

I lean towards C. An independent audit keeps things in check.

Leonor 1 month ago

I think A is the best choice. Risk management is crucial.

Karol 1 month ago

I agree with A, but C shouldn't be underestimated either!

Stefany 1 month ago

Not sure about D, can AI really handle due diligence effectively?

Jacklyn 2 months ago

Surprised that people overlook B, AI is the future!

Maricela 2 months ago

I think C is crucial too, audits keep things in check.

Kenda 2 months ago

Definitely A, risk management is key!

Sue 2 months ago

I’m torn between A and C. I know both are important, but I can't recall which one is considered a basic element.

Tashia 2 months ago

This question reminds me of a practice quiz where we had to identify key components of compliance programs. I think the audit function was highlighted there too.

Marya 3 months ago

I feel like we discussed enterprise risk management in class, but I'm not confident if it was specifically about AML/CFT programs.

Kathrine 3 months ago

I think I remember that an independent audit function is crucial for compliance, but I'm not entirely sure if it's the only basic element.

Acams CAMS Exam - Topic 2 Question 118 Discussion