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Acams Exam CAMS Topic 3 Question 96 Discussion

Actual exam question for Acams's CAMS exam
Question #: 96
Topic #: 3
[All CAMS Questions]

A recruitment manager in the human resources department of a bank has shortlisted a candidate for the position of relationship manager in its private banking division.

The bank's compliance policy requires proper background checks to protect against fraud and money laundering risks.

Which resources would be most useful for identifying potential negative information regarding the shortlisted candidate? (Select Three.)

Show Suggested Answer Hide Answer
Suggested Answer: A, D, E

Financial institutions must conduct thorough background checks on employees in sensitive roles (e.g., private banking) to mitigate fraud, insider trading, and money laundering risks.

Option A (Correct): Past employment records help verify work history and identify any red flags related to prior financial misconduct.

Option D (Correct): Internet and media searches reveal any negative press, regulatory issues, or connections to illicit activity.

Option E (Correct): Criminal history searches help screen for prior convictions related to financial crimes.

Why Other Options Are Incorrect:

Option B (Incorrect): Personal references are less reliable and may not uncover objective risk factors.

Option C (Incorrect): A resume is self-reported and should be verified using independent sources.

Best Practices for Employee Background Screening:

Conduct enhanced due diligence for high-risk roles (e.g., private bankers, compliance officers).

Use reliable background screening tools and legal databases.

Verify employment history and check against regulatory blacklists.


FATF Recommendation 18 (Internal Controls & Employee Screening)

Wolfsberg Group Guidance on AML Employee Background Checks

6th EU AML Directive (6AMLD) on Employee Due Diligence

by Leonor at Mar 22, 2025, 09:03 PM

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Ryan
2 months ago
I believe internet and public media searches would be crucial in uncovering any potential red flags.
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Linn
2 months ago
I agree, personal references from close associates could also provide valuable insights.
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Charlie
2 months ago
Ooh, I heard a rumor that one of the candidates for this position used to be a professional magician. Maybe we should add 'check for any sleight of hand skills' to the list!
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Ivette
20 days ago
E) Criminal history searches.
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Annelle
21 days ago
D) Internet and public media searches.
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Samira
1 months ago
A) Past employment records.
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Verlene
2 months ago
Haha, personal references? Really? That's like asking the candidate's best friend to vouch for them. Talk about a waste of time. Give me those criminal history searches any day!
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Kristin
2 months ago
I'm surprised personal resume isn't one of the top picks. That's where you'll find all the key information about the candidate's background and qualifications. Gotta start there, right?
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Tish
24 days ago
C: Personal resume is definitely important, but it's also crucial to verify the information provided independently.
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Sharika
26 days ago
B: Personal references from close associates can provide insights into the candidate's character.
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Steffanie
1 months ago
A: Past employment records are important to verify the candidate's work history.
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Daniel
2 months ago
Definitely agree with Patrick. Personal references are great, but you need to dig deeper to really vet this candidate. Can't leave any stone unturned when it comes to fraud and money laundering risks.
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Patrick
2 months ago
Past employment records, criminal history searches, and internet/public media searches are definitely the way to go. You can't be too careful these days, you know?
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King
1 months ago
Internet and public media searches can provide additional insights into the candidate's background.
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Maybelle
2 months ago
Criminal history searches can reveal important information about the candidate.
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Pamella
2 months ago
Past employment records are crucial to check for any red flags.
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Kenda
2 months ago
I think past employment records would be useful for identifying negative information.
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